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Toy Licenses: Different Perspectives

By Lutz Muller

The licensed toy segment is large and continues to grow. According to The NPD Group, the overall toy market in the U.S. declined by 1.8 percent last year, while licensed toy sales grew by 1.8 percent and now represent about 31 percent of the U.S. toy market in value.

Swivel-Snaps

Swivel-Snaps

There are two parties to any licensing deal: the licensor that owns the property to be licensed, and the licensee that will take it to the marketplace. Not surprisingly, the perceived value of a license differs sharply depending on which of the two parties you ask, but the perspective can be boiled down to a very simple statement: The licensor sees the upside of a product or a brand through rose-tinted glasses, while the licensee sees the downside given by competition and retailer limitations.

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