The Sale of Licensed Merchandise

A set of vocabulary flashcards covering the concepts, terminology, financial agreements, and market data related to the sale of licensed sports merchandise.

United States Patent and Trademarks Office (USPTO)

The federal agency where trademark owners can register marks and renew registration every $10\text{ years}$.

Trademark Product Categories

The classification system consisting of $45$ categories in which organizations must register their marks for any category where they conduct commerce.

First Use Date

Documentation that allows an organization to protect an unregistered trademark based on the date it was initially used in commerce.

Licensor

The sports organization or property owner holding intellectual property rights that grants permission to an external party to produce and sell goods bearing its marks.

Licensee

The manufacturer or third-party entity that acquires contractual rights from a licensor to create and sell merchandise bearing the licensor's marks.

Grant of Rights

A contractual provision within a licensing agreement that details the scope, permissions, and level of exclusivity awarded to a licensee.

Advance / Guaranteed Minimum Payments

Licensing agreement provisions that require upfront fees or establish a minimum revenue baseline owed by the licensee regardless of actual sales performance.

Right to Audit

A provision in a licensing contract permitting the licensor to examine and review the licensee's financial records and statements to verify reported royalties.

Centralized Licensing in Professional Sport

A model where professional sports teams operate under a collective agreement that pools licensing revenues and runs a league-wide properties office, with rare exceptions such as the Dallas Cowboys.

Players' Association (Licensing)

The entity that typically manages athlete names and likenesses separately from league properties rights.

Dallas Cowboys (Licensing)

The notable exception to centralized professional sports licensing, having opted out of the pooled league licensing model to manage merchandise independently.

Agency Representation (College Athletics)

An outsourced management approach where collegiate athletic departments hire an external agency to oversee licensing programs and agreements.

In-House Management (College Athletics)

An administrative approach where collegiate athletic departments handle trademark operations, compliance, and licensing agreements directly without an outside agency.

$1994$ Nike / Michigan Contract

The first all-sport contract in collegiate athletics, valued at $\text{USD } 1\text{ million}$ annually, which established a precedent for all-school apparel partnerships.

$2016$ Nike / Ohio State Contract

A collegiate athletic apparel agreement valued at $\text{USD } 252\text{ million}$ over $15\text{ years}$, with an annual average of $\text{USD } 16.8\text{ million}$.

$2016$ Under Armour / UCLA Contract

A collegiate athletic apparel agreement valued at $\text{USD } 280\text{ million}$ over $15\text{ years}$, with an annual average of $\text{USD } 18.7\text{ million}$.

$2026$ Adidas / Penn State Contract

A collegiate athletic apparel agreement valued at $\text{USD } 300\text{ million}$ over $10\text{ years}$, with an annual average of $\text{USD } 30.0\text{ million}$.

NASCAR Royalty Rate

The royalty rate commanding between $17\text{--}20\text{\%}$, which combines both driver and NASCAR licenses.

NFL and MLB Royalty Rates

The typical average royalty rates charged by the NFL and MLB for licensed merchandise, ranging between $12\text{--}14\text{\%}$.

Collegiate Royalty Rates

The typical average royalty rates charged for collegiate athletic licensed merchandise, ranging from $8\text{--}12\text{\%}$.

Trademark Enforcement Strategies

Methods used to safeguard intellectual property, including consistent commercial use, monitoring trademark filings, challenging infringements, utilizing holograms or labeling, customs inspections, and maintaining retailer relationships.

Licensed Sports Merchandise Market Projections

Industry projections by Mordor Intelligence estimating global growth from $\text{USD } 35.63\text{ Billion}$ in $2024$ to $\text{USD } 46.06\text{ Billion}$ in $2029$ at a CAGR of $5.27\text{\%}$.