1. NEW TRENDS IN LICENSING Charles M. Riotto President International Licensing Industry Merchandisers Association (LIMA)

2. LIMA 1000 MEMBERS AROUND THE WORLD THE INDUSTRYS MAIN SOURCE OF EDUCATION INFORMATION AND NETWORKING OPPORTUNITIES 3. LIMA SPONSOR OF LICENSING 2003 INTERNATIONAL LICENSING LONDON LICENSING ASIA 4. LICENSING ENTERTAINMENT CORPORATE SPORTS FASHION ART 5. LICENSING TRENDS

ENTERTAINMENT CHARACTERS AS PRODUCT ENDORSERS

6. LICENSING TRENDS

CORPORATIONS:

STRENGTHEN THEIR TRADEMARK

PREVENT PIRACY

ADD REVENUES

MORE EXPOSURE

7. LICENSING TRENDS

COLLEGES :

SUBSIDIZE THEIR EDUCATIONALPROGRAMS

8. LICENSING TRENDS

LICENSING IS A $150 BILLION WORLDWIDE BUSINESS

9. LICENSING TRENDS

LIMAS STATISTICAL STUDY

CONDUCTED BY RESEARCHERS AT HARVARD BUSINESS SCHOOL AND YALE SCHOOL OF MANAGEMENT

LICENSING IS A $95 BILLION BUSINESS IN THE U.S.

10. LICENSING TRENDS

$5.5 BILLION IN ROYALTY INCOME IN THE U.S. IN 2001

11. LICENSING TRENDS

44% OF LICENSING ROYALTIES ARE FOR CHARACTER AND ENTERTAINMENT PROPERTIES

12. LICENSING TRENDS

LICENSING REVENUES :

CHARACTER/ENTERTAINMENT$2.5 B

TRADEMARK/BRANDS$963 M

FASHION$911 M

SPORTS$707 M

COLLEGIATE$175 M

ART$147 M

MUSIC$117 M

13. LICENSING TRENDS

LICENSING ROYALTIES BY PRODUCT CATEGORY :

APPAREL$976.4 M

TOYS & GAMES$958.3 M

SOFTWARE/VIDEOGAMES$536.8 M

ACCESSORIES$450.0 M

GIFTS & NOVELTIES$506.4 M

FOOD & BEVERAGES$418.3 M

14. LICENSING TRENDS

ENTERTANIMENT LICENSING IN THE U.S.:

$2.5 BILLION IN ROYALTIES

$42.5 BILLION AT RETAIL

44% OF ALL LICENSINGREVENUES

15. LICENSING TRENDS

DISNEY CONSUMER PRODUCTS:

MICKEY MOUSE

WINNIE THE POOH

DISNEY PRINCESS

POWER RANGERS

LIZZIE McGUIRE

16. LICENSING TRENDS

WARNER BROS. CONSUMER PRODUCTS:

LOONEY TUNES: BACK IN ACTION

HARRY POTTER

SCOOBY-DOO

17. LICENSING TRENDS

NICKELODEON:

SPONGEBOB SQUAREPANTS

DORA THE EXPLORER

BLUES CLUES

JIMMY NEUTRON

RUGRATS

18. LICENSING TRENDS

OTHER POPULAR ENTERTAINMENT LICENSORS:

HIT ENTERTAINMENT

4KIDS ENTERTAINMENT

MARVEL

MATTEL

UNITED MEDIA

19. LICENSING TRENDS

RETRO PROPERTIES ARE POPULAR

20. LICENSING TRENDS

STUDIOS ARE USING FRANCHISE DEVELOPMENT STRATEGIES

21. LICENSING TRENDS

LICENSING OF MUSICAL PERFORMERS IS GROWING

22. LICENSING TRENDS

CREDIT CARD AFFINITY PROGRAMS FEATURING LICENSED CHARACTERS

23. LICENSING TRENDS

SALES OF LICENSED TOY PRODUCTS ARE UP

24. LICENSING TRENDS

CORPORATE BRAND LICENSING:

AUTOMOTIVE BRANDS HAVE MAJOR LICENSING PROGRAMS

25. LICENSING TRENDS

FOOD & BEVERAGE LICENSING ACCOUNTS FOR 25% OF ALL CORPORATE LICENSING REVENUES

26. LICENSING TRENDS

COCA-COLA LICENSING :

PROGRAM STARTED IN ORDER TO ENFORCE TRADEMARK RIGHTS

NOW GENERATES ABOUT $1 BILLION IN RETAIL SALES

27. LICENSING TRENDS

CORPORATE LICENSING :

GROWTH IN HEALTH & BEAUTY AIDS CATEGORY

28. LICENSING TRENDS

CORPORATE LICENSING :

CABLE NETWORKS NOW INTO LICENSING

29. LICENSING TRENDS

CORPORATE LICENSING:

FOOD & BEVERAGES 31%

APPAREL 16%

ACCESSORIES 7%

GIFTS & NOVELTIES 6%

HOUSEWARES 6%

TOYS & GAMES 5%

30. LICENSING TRENDS

CORPORATE LICENSING :

LOW-RISK WAY TO BUILD BRAND AWARENESS

PROMOTES THE CORE PRODUCT

INCREASE APPEAL TO DIFFERENT GROUPS

STRENGTHENS TRADEMARK RIGHTS

31. LICENSING TRENDS

CORPORATE LICENSING TRENDS :

INTEREST WILL CONTINUE TO GROW

USED AS A MEANS TO ACCOMPLISH DIFFERENT GOALS

GROWTH WILL SLOW DOWN

ROYALTY RATES WILL RISE SLOWLY

DEALS ARE GETTING BIGGER

32. LICENSING TRENDS

SPORTS LICENSING :

$707 MILLION IN ROYALTY REVENUES

$14 BILLION IN RETAIL SALES

33. LICENSING TRENDS

SPORTS LICENSING :

U.S. LEADERS :

NATIONAL FOOTBALL LEAGUE (NFL)

MAJOR LEAGUE BASEBALL (MLB)

COLLEGIATE LICENSING CO. (CLC)

NATIONAL BASKETBALL ASSN (NBA)

NASCAR

NATIONAL HOCKEY LEAGUE (NHL)

34. LICENSING TRENDS

FASHION LICENSING :

$911 MILLION IN ROYALTIES

$15.5 BILLION IN RETAIL SALES

35. LICENSING TRENDS

ART LICENSING :

$147 MILLION IN ROYALTIES

$2.5 BILLION IN RETAIL SALES

36. LICENSING TRENDS

LICENSING AT RETAIL :

DIFFICULT FOR SMALLER PROPERTIES TO GET NOTICED

LICENSORS NOW WORKING DIRECTLY WITH RETAILERS

37. LICENSING TRENDS

KEYS TO RETAIL RELATIONSHIPS :

UNDERSTAND THE RETAILER AND HIS CUSTOMERS

UNDERSTAND WHERE YOUR PROPERTY FITS

HOW WILL IT DRIVE TRAFFIC?

WILL IT BRING NEW CUSTOMERS?

WILL IT SELL MORE PRODUCT?

38. LICENSING TRENDS

OTHER TRENDS :

GUARANTEES GETTING SMALLER

ROYALTY RATES STABILIZING

39. LICENSING TRENDS

OTHER TRENDS :

CROSS LICENSING GAINING POPULARITY

40. LICENSING TRENDS

INTERNATIONAL LICENSING MARKETS :

U.S./CANADA 65.0%

WESTERN EUROPE 22.0%

JAPAN9.8%

AUSTRALIA/N. ZEALAND 1.3%

SOUTH/CENTRAL AMERICA0.7%

SOUTHEAST ASIA0.5%

OTHER0.7%

41. LICENSING TRENDS

SUGGESTIONS :

ATTEND NEW YORK LICENSING SHOW

CONSIDER ATTENDING LICENSING SHOWS IN LONDON AND TOKYO

42. LICENSING TRENDS

SUGGESTIONS :

JOIN AND SUPPORT ABRAL

JOIN LIMA

43. LICENSING TRENDS

THANK YOU!