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Home | Press Releases | Royalty Rate For Licensed Merchandis . . .

Royalty Rate For Licensed Merchandise Increases For First Time In Four Years

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NEW YORK, NY: July 20, 2010-The average royalty rate for licensed merchandise rose  for the first time in four years in 2009, reaching 8.8%, according to The Licensing Letter's Royalty Trends Report. Previously, the rate had held at 8.7% since 2006.

"The rates for individual types of properties and for different product categories vary more than the overall figure suggests," says Ira Mayer, Publisher of The Licensing Letter. "The average royalty in the entertainment/character sector, for example, rose 4.2% last year, the most of any property type, likely due to the fact that only the most tried-and-true properties (e.g., Disney or Nickelodeon) are getting through to store shelves."

By product category, the sectors with the greatest fluctuation are those where the licensing landscape is toughest, - for example, videogames and traditional toys, where average royalties declined 6.2% and 5.3%, respectively - and those where licensing is healthiest (e.g., food & beverage, where average royalties rose 4.3%).

"The actual royalty is only one component of a licensing agreement," adds Mayer.  "And increasingly the parties to a deal are looking for creative ways to structure advances and guarantees that get merchandise on the shelf, exposure for the licensed property, and ring up sales for the retailer."

In addition to current royalty rates, the Royalty Trends Report provides 10-year trendlines for Art, Entertainment/Character, Fashion, Sports, Trademark/Brand and 5 other property types and for 16 key product categories.

All charts and graphs are included on a CD-ROM (or download with a PDF purchase) as individual .jpg files for immediate use in proposals, reports and presentations.

The Licensing Letter is an EPM Communications, Inc. trade publication which tracks trends, data and deal-makers in the business of licensing intellectual property for sale on consumer products.

A complete table of contents and brochure about the the Royalty Trends Report are available at www.epmcom.com/royalty.

For further information about licensing and retail trends contact Ira Mayer, 212-941-1633, ext. 27 or imayer@epmcom.com.

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