Art Licensing: 2012 Top 150 Global Licensors

Advanstar Communications released their digital May 2013 edition of License! Global magazine that includes the Top 150 Global Licensors for 2012. As usual Disney tops the list with their brands on products selling a whopping $ 39.3 billion at retail. Unfortunately there are not many art licensors on the list. However, this is not surprising because art licensing is a small category (only 3%) of the total licensed merchandise sold according to LIMA (Licensing Industry Merchandisers' Association) in the article "Licensing Industry Sales Jump 5% Marking First Gain in Five Years". Note: Five years ago more artists made Advanstars Top Licensor list but now artists have a hard time competing against all the various brands (food, fashion, home improvement, sports, magazines, cars, etc.) that have entered the licensing industry. Brands have the spending power to hire experts in marketing and advertising besides hire celebrities that endorse the brands. Thus, they get more exposure than art and tend to sell more product.

The Thomas Kinkade Company held strong by Kinkade art selling $425 million products at retail (p.52). Wood carver and painter Jim Store creations sold $150 million products at retail (p.57); photographer Rachel Hale (Dissero Brands) $45 million at retail (p. 63), and Suzy Zoo $42 million at retail (p. 63). MHS Licensing artists art sold $100 million products at retail (p. 60). That is a combination of all the art licensed by the 32 artists MHS Licensing represents. They attributed a sizable portion of the amount to their wildlife artists Al Agrew, The Hautman Brothers, and Darrell Bush.

Below are articles about top licensors from the previous years.
• "Tracking the Success of Top Art Licensors" (from 1998 to 2008)

• "2009 Top Art Licensors"

• "2010 Top 125 Global Licensors"

• "Licensing: 2011 Top 125 Global Licensors"

Your comments are welcome. Please click on the comments section (below) to write your comment.

Last Minute Tips: Attending SURTEX by Agent Kimberly Montogery

The 2013 SURTEX sale and art licensing show is May 19-21 at the Javits Center in New York. Read the following tips on attending it by art licensing agent, consultant, and artist Kimberly Montgomery. Kimberly is a 20-year veteran at SURTEX and this will be the third time she's exhibited as Montage Licensing (booth 465).

Last Minute Tips About Attending SURTEX
by Kimberly Montgomery
Montage Licensing

The last thing the world needs right now is another person commenting on how to navigate SURTEX (or as I lovingly refer to it this time of the year: the ‘S’ word). But never the less, here I go . . .

1. Very few people actually make a DECISION at SURTEX. That includes manufacturers, agents, art buyers and art directors. Probably the only one who does is the guy who changes the empty toilet paper roll in the bathroom stall after you use it. Every one else is going to go back to the office and think it over for months. Maybe years.

2. A lot of people that attend SURTEX have known each other for years and act like it. It can make you feel like you’re back in high school and not in with the cool kids. The best you can do is be friendly, brief and dazzle them with your confidence. Follow up is your new best friend.

3. You will see a lot of great art. Trust me, it wasn’t great in the beginning. Everyone started somewhere. Licensing takes a lot of time and a lot of work. And then you make a little bit of money if you’re lucky. Sounds fun doesn’t it?

4. While attending SURTEX, please don’t ask an agent to represent you. You won’t like the result. See the last two sentences of #2.

5. It is the most exciting few days of the year for all of us. Great art, great talent, great minds and the best of the best in the industry. Go to SURTEX with the idea of having fun, making connections and possibly a few new friends.

See you in New York!

Your comments are welcome. Please click on the comments section (below) to write your comment.

Editorial: The Truth about Licensing Art

There are many positive reasons to create art for licensing because otherwise artists would not license their art. But, just like all businesses' the art licensing industry also has negative aspects. I believe that power is knowing the negatives because you can use that knowledge to be prepared and not have unrealistic expectations in licensing your art. And, sometimes you can convert the negatives to positives.

Negative Aspects
The following is a list in no particular order of what an artist should know about the negative aspects in licensing art. Note: These are my opinions. Other artists, licensing agents and experts in the art licensing industry may have different opinions. It is always wise to get several viewpoints and not depend on only one.

• Licensing art is very competitive. There are thousands of artists trying to license their art. And, the number of artists increase each year. Thus, getting licensing contracts is harder each year.

• Not every artist can make a living by licensing her / his art because of the competition and less retailers selling licensed products.

• Licensing is NOT a 9AM to 5PM job. Artists need to juggle daily personal commitments with creating art and other associated licensing duties. Dedicated licensed artists work more than 12 hours a day especially when a deadline looms.

• Not all art is licensable. There are many reasons why beautiful art is not licensable. To find out why, read "Editorial: Not all Art is Licensable."

• Artists will not be able to license all the art they create. Because of the competitive industry, not all art themes are popular, and the art may be ahead or behind the trend. Also, not every image licensed will be licensed for more than one product. It may not be the right image for other products or manufacturers are not interested in licensing it for whatever reason.

• Not all art licensing agents and manufacturers are honest. Unfortunately, contracts are not always in the best interest to the artist and not every agent or manufacturer pay artists monies owed them. It is always wise to ask others in the art licensing industry if a manufacturer / agent that you are considering is reputable. And, you should have an attorney experienced in art licensing look over the contract before signing it.

• It is difficult to protect art from copyright infringers. Some artists watermark their images and use password protected websites. But, there are downsides to doing so. Many manufacturers will not take the time to request a password from the artist to view the art and dislike watermarks because they detract from the art. But in any case, artists should copyright their art with the Library of Congress so that if they need to sue for infringement and win, they will get legal fees paid beside being awarded statutory damages. To learn more about copyrights, read attorney Joshua Kaufman's article "Filing Copyrights: How and Why or Just Do It!"

• Art directors look at 100s of images for EACH image that is licensed. Thus, manufacturers showing interest in your art does not necessarily mean it will be licensed. For instance, experienced SURTEX show exhibitors know that the reality is that less than 10% (more like zero to 3%) of the art that art directors request for licensing consideration results in a deal.

• Not all licensed art have accurate colors on products. This could be due to the type of process used to print the art on the product, the manufacturer does not have or take the time to make sure the colors are accurate, or the manufacturer purposely changes the color saturation so that the colors are brighter (sometimes done for decorative flags). Note: Not having accurate colors most likely will not affect the sale of the product because consumers have not seen the original art. Although I do grimace when I see some of my licensed art on products.

• Getting a deal does not always mean that the product will be produced. It could be a print-on-demand type of deal which means the art on the product will only be produced if a retailer orders it. Or, the production of the art on the product is cancelled for some reason. Also, sometimes the manufacturer only produces one batch and if the amount sold does not meet expectations it is not produced again even though the contract will not expire for several more years.

• Royalties from a deal can be a very small amount or nothing if the product does not sell well. Sometimes an artist can make more revenue from a licensing flat fee than from a royalty deal.

• More and more manufacturers are pre-selling their products before producing them. That means they may request HiRes art (high resolution) from the artist so that they can make samples for presentations. An artist needs to really trust the manufacturer before sending them HiRes art for presentation because no contract is signed.

• Manufacturers may request that the artist hold art for them so that they can give presentations to their clients. If the artist agrees, it means that she/he cannot license the art in the same category to another manufacturer. Sometimes the manufacturer will hold the art for months and the artist loses the chance to license the art that year if it is not accepted by the client.

• Artists may be requested by a manufacturer to create art on speculation. That means there is no guarantee that it will be licensed. Although, there is always a possibility it will be licensed by another manufacturer. Some artists require that they get a designer fee before starting work on a spec project. Others work on spec under certain conditions such as only designing an art theme that appeals to a broad spectrum of consumers so the chances of it being licensed is greater. Or, the artist already has a good working relationship with a manufacturer and thinks that they will most likely create art that will be licensed.

• Artist are not always able to approved the product sample before it goes into production. Many times the production cycle is too tight and manufacturers are not willing to let the artist approve the sample. Although sometimes they will send a picture of the final product via the internet.

• Certain themes even though they are popular may be difficult to license to some industries. These manufacturers already have artists that are licensing those themes and they are not looking for another. For instance, calendar manufactures already license art from certain artists year-after-year for country, song birds, cats, roosters, wine and coastal themes. Until those artists can no longer produce enough art (normally 12 - 13 images per calendar), other artists will not be able to get a deal with them.

Related Articles
• "10, oops, 17, Things You Need to Learn to Make It in Art Licensing" by licensing art agent Jim Marcotte of Two Town Studios.

• "Editorial: Art Licensing Myths" - Myth #1: License your art so you do not have to work so hard, Myth #2: License your art if you are broke and need money. Myth #3: Any art can be licensed. Myth #4: One design can be licensed for ALL products. Myth #5: An artist will get many licensing deals by signing with an agency. Myth #6: Licensing revenue is always from royalties.

• "Editorial: Art Licensing Myths continued (myth #7 to #12)" Myth #7: An artist must have an agent or manufacturer sign a Non Disclosure Agreement (NDA) before showing art. Myth #8: Agents not only manage the business part of licensing but track trends, guide the artist in what art to create, and critics it. Myth #9: There is a manufacturer art size and file format standard. Myth #10: There is a standard time of the year for submitting art to manufacturers. Myth #11: Manufacturers prefer to license art from agents than from individual artists. Myth #12: Participating in manufacturers call-for-submissions (cattle-calls) is a waste of time.

• "Editorial: Art Licensing Myths continued (myth #13 to #18)" Myth #13: You are not infringing on the copyright if you change someone's art 5, 10, or 20%. Myth #14: Any free clip art and fonts found on internet websites can be used in art and not infringe on the copyright. Myth #15: Art licensing agencies always contact the artist when she/he submits art for representation. Myth #16: A good way to get a licensing deal is to send out e-mail blasts. Myth: #17 A manufacturer keeps producing product with the same art if it sells well. Myth: #18 You only need to follow-up once after contacting a manufacturer.

I have never worked harder in my life than licensing my art. It can be a frustrating business but it is so worth it when product samples arrive with my art on it, I see my art on products in stores, and the quarterly licensing revenue arrives.

Perhaps art licensing agent Lance Klass of Porterfield's Fine Art Licensing states it best with "I came away from this article with the understanding that what Joan is essentially saying to artists is that they should enter art licensing with their eyes wide open, expecting the best but not being dismayed when things don't work out the way they should. And not giving up when one runs into the inevitable bumps in the road."

Make sure that you read the comments about this article.  Readers have share some useful information!!!
 
Your comments are welcome. Please click on the comments section (below) to write your comment.

Art Licensing: Building a Brand

In the past, a tag line and / or logo was what identified a brand. But, in recent years many brands also use a person or character to build a relationship with their target audience. And, many brand building experts state that it is easier to build a brand around a person than an inanimate object such as a logo. People naturally respond to a person they like and tend to build a relationship with them while it takes a long time to market a logo to get the same consumer reaction. That is why a person (s) or character is often associated with the brand such as Ronald McDonald for MacDonalds fast food chain, Flo* for Progressive auto insurance, Dave Thomas (before his death) for Wendy's fast food chain, and the Maytag repairman** for Maytag washing and drying machines.

* "The Popularity of Progressive's perky insurance clerk shines again"
** "The Maytag Repairman"

The same technique can be used by artists to build their brands. Artist Thomas Kinkade knew how important it was to market himself to extend his art brand. He did a copious amount of personal appearances, youtube.com videos, and made sure that pictures of himself were placed in advertisements, press releases, and on products. Thus, even though his tag line "painter of light" is the most recognized method in identifying the Thomas Kinkade brand, a picture of Thom on product hang-tags is also a very important identifier. Note: Even though personal marketing is important to extend a brand, all the other methods used in branding is also valid.

Below is a list of excellent resources about what is branding, various ways to brand, and interesting articles about several "super" licensed brands. Not all the articles are aimed at the art licensing industry but they do contain valuable information and can be applied to branding art.

• Art Licensing Branding
– "Brand Yourself for Success in Art Licensing Teleseminar with Paul Brent"

– "Licensing: Brand Building with Marketing that Really Counts!" article by Linda Mariano art licensing and branding consultant

• Articles in License Global magazine issues about super brands  - these take a while to start.
– "Swimming with a Savvy Shark" (p. 30-31) Discussion on branding and tips from Daymond John of reality TV show "Shark Tank."

– "Brand Stars" (p. 22-24) Discussion on brands, marketing and products that are on television including the reality TV show Fashion Star.

– "Kathy Ireland Super Brand" (p. 60-62) Discussion on how kathy Ireland became a super lifestyle brand with $2 billion in retail sales of licensed products in 2011.

• Articles on branding by marketing and branding expert Susan Gunellus
– "What is a Brand? Part 1: 5 Factors that Define a Brand"

– "How to Brand - Part 1: Research the Market and Consumers"

– "How to Brand - Part 2: Identify Brand Values"

– "How to Brand - Part 3: Create Brand Messages and Brand Images"

– "How to Brand - Part 4: Educate People about Your Brand"

– "How to Brand - Part 5: Devlop Emotional Involvement and Branded Experiences"

– "How to Brand - Part 6: Monitor Brand Perception"

Your comments are welcome. Please click on the comments section (below) to write your comment.

Art Licensing Resource: SURTEX Website

The SURTEX show is the marketplace where manufacturers look for original art and design for their products. The show will be held May 19-21, 2013 at the Jacob K. Javits Convention Center in NY. The Surtex website (surtex.com) is the place to find out what is offered when attending the show such as a listing of artists, agents and companies that will be exhibiting their art and surface patterns. The site also describes other activities such as free daily color, textile, designs and theme trend seminars; ten licensing seminars that attendees can sign-up for; the annual designext® (International Student Design Competition); and the opportunity to visit three wholesale shows at the same time (National Stationery Show, International Contemporary Furniture Fair, Creative & Lifestyle Arts) in the same venue.

But, if you cannot attend SURTEX, the SURTEX website site is also a great resource in learning about the show and about the art licensing industry. The site has slide shows of 2012 exhibitor booths, exhibitor happy hour pictures, and the winners of designext®. On the site are also links to youtube.com videos about SURTEX, links to trendease.tv Podcasts by licensing experts on different aspects of the industry, guest articles by licensing experts, and SURTEX newsletter "On the Surface" archives of past newsletters. See below for more information about these resources.

Articles - Guest Blog
Below is a list of the latest articles in the Guest Blog section of the website. But, there are many more articles.
• "The More Not Necessarily The Merrier in Art Licensing" by John Chester of Wild Apple
• "Trends to look for at SURTEX 2013!" by Mary Beth Freet of Pink Light Studio
• "Do you have an “Elevator Speech” ready for the SURTEX 2013 show?" by Tara Reed
• "Tips on Collection Building from Khristian A. Howell"

Newsletter
The SURTEX newsletter "On the Surface" is posted regularly throughout the year. Past issues may be viewed by clicking HERE. You can subscribe to the FREE issues that are automatically sent via e-mail.

Photo Gallery slide shows
• 2012 booths,
• 2012 happy hour
• 2012 winners of designext® (annual International Student Design Competition)

Podcasts on trendease.tv
Below are descriptions of Podcasts by art licensing experts about different phases of the industry. Podcasts 1 - 8 are sponsored by SURTEX.

Podcast 1: Penny Sikalis (VP / SURTEX show manager)
Do you ever wonder where patterns, motifs, and surface interest come from? Fashion, papergoods, seasonal items, home decor including textiles, tabletop, wallcoverings and more--they all get their aesthetic from somewhere. It starts here with art. In this interview learn where to find that art, who uses it, how it is applied, and how it acts as a crystal ball.

Podcast 2: Michelle Klein (surface designer)
Klein Designs represents a selection of artists from around the UK specializing in surface pattern. Michelle, with a degree in Fashion & Printed Textile Design from the renowned St. Martins School of Art, talks about her experiences selling designs and unveils many key trends for the coming seasons. Listen and learn.

Podcast 3: Cathy Savchick (buyer at BJ's Wholesale Club)
Trendease speaks with the seasonal buyer at BJ's Wholesale Club to understand more about how original art plays into their business strategy to offer customers unique products that they cannot find anywhere else at a very competitive value. From holiday items to outdoor objects, art is part of the product development cycle. Also learn about the latest Christmas green!

Podcast 4: John Haesler (partner of MHS Licensing agency)
Known as one of the "100 Most Influential Players" in licensing, Principal of MHS Licensing and former Licensing Director at Target, John Haesler talks with Trendease about the keys to success in his line of business. From noting the value of intellectual property to design and market trends, these pearls of wisdom are worth a listen.

Podcast 5: Milou Ket (trend forecaster)
In this podcast trend forecaster Milou Ket shares her sources of inspiration and how she communicates design directions to her clients. She also talks about her upcoming presentations at Surtex, giving highlights of the six trends to be presented for 2013-14 including Harmony & Balance, Sensual & Passionate, Bright Kaleidoscope, and Nocturnal Luxury.

Podcast 6: Stephanie Dell'Olio (division president of Marcus Brothers Textiles, Inc - importers & converters of textile fabrics for craft, quilting and apparel)
Quilting may have the stereotype of being old-fashion, but that perception is changing! Learn about how a company working with styles ranging from 18th century to modern and hip is sourcing and selling fabrics to a shifting marketplace. Also understand how a trade show can influence the dynamics between a president of a division and its design team.

Podcast 7: MaryJane Mitchell (surface designer)
MaryJane has been running her own design studio for almost 30 years. Her artwork has graced many product categories from textiles, wall décor, ceramics, to furniture. In this podcast she gives tips on exhibiting, using an agent, and talks about market shifts from the growing designer pet industry to the colorways for children’s fashions.

Podcast 8: Maurice Ross (attorney at Barton LLP)
The first thing that comes to mind when one thinks about selling art for surface design may not be intellectual property, but the reality is that IP rights are incredibly important in the business of selling designs. In this podcast Maurice Moss, partner at Barton LLP, specializing in commercial, IP and patent litigation, gives us invaluable advice on copyright and licensing.

Videos linked to youtube.com
The videos showcase SURTEX booths, comments by exhibitors and other art licensing experts. Note: At the time this article was posted a selection of videos was on the surtex.com front page after "The Buzz of SURTEX 2012" finished playing. However, the link may be later moved or deleted. If the video is no longer on the page, go to youtube.com and search for "surtex" to view the videos.

Your comments are welcome. Please click on the comments section (below) to write your comment.