by STEPHANIE POTTICK, ESQ., Pottick Law PC & Protect for Success
Barbie: The Movie was the highest-grossing film of 2023. Who knew a doll would become an entertainment mogul? Maybe Mattel did — or maybe they were just as surprised as the rest of us.
Once upon a time, a toy was just a toy, a book was just a book, and a video game was just a video game. Those rules don’t apply anymore.
Now, a book series like Harry Potter can become an empire of movies, merchandise, and experiences; a video game like Super Mario Bros. can become a successful kids’ entertainment property; and a comic book like Iron Man can spawn the Marvel Cinematic Universe.
Each started out as something small, but then exploded because of its popularity and familiarity. People tend to gravitate to brands they know, like, and trust, which can create amazing opportunities for IP owners to get creative — and think BIG!
Essentially, nearly any IP can become a strong revenue driver, and that’s mostly because of licensing. Collaborations are only limited by your imagination. Think of McDonald’s x Loungefly bags, Hershey’s x Crocs shoes, the Wizarding World of Harry Potter experience at Universal Studios, branded virtual experiences on Roblox, and even Pac-Man sushi — creativity is always the key when it comes to successful partnerships.
These are well-known brands, but you don’t have to be big to start thinking about licensing for your brand.
Prepare for Licensing
To effectively expand your IP through licensing, you should consider some key legal protections. These are just a few things to think about:
• Anticipate what your core products and services will be, and then consider what might be the next logical zone of expansion.
Do you want to sell storybooks? Toys? Clothing? Create an animated series? You’ll need to protect each of those in different trademark classes separately.
Once you have your list, consider filing trademark applications for some of (or all, if you can afford to) those products and services. Why? Because having trademark protection can make the difference between being able to license and losing a deal.
"Essentially, nearly any IP can become a strong revenue driver, and that’s mostly because of licensing. Collaborations are only limited by your imagination."
• Copyright your characters, pitch decks, stories, logos, and other creative aspects of your brand/IP.
Getting trademarks and copyrights gives you something to enforce and monetize. Think of it this way, if you don’t have some sort of IP protection, what is a company licensing and why should they have to pay for it?
• Don’t forget to make sure your company actually owns the IP you plan to license out.
Did you know that you don’t automatically own IP rights to things that third parties create for you — even if you pay for them? That means the illustrator you hired would still own the IP rights to your illustrations and logos unless you get ownership of those rights specifically via contract.
Keep these tips in mind because, like Barbie, who was once just a toy, your IP can one day become the next big thing. Good luck!
*Disclaimer: This article is for informational purposes only and not intended as legal advice.
A version of this feature was originally published in The Toy Book’s 2024 Licensing & Entertainment Issue. Click here to read the full issue! Want to receive The Toy Book in print? Click here for subscription options!
