NEW YORK 08: Licensing weathering US economic storm

By Samantha Loveday in New York

June 11th 2008 at 12:48PM
NEW YORK 08: Licensing weathering US economic storm

New report from industry trade body LIMA tracks royalty income for North America.

Industry trade body LIMA has released details of the 2007 annual report, revealing the royalty income reported from licensing for the US market.

Revealed at Licensing International in New York, the survey methodology relies on direct responses from licensors and licensing agents as to their actual royalty income received in 2007.

Estimated licensing revenues by property type for the year (in million dollars), see the character sector increase from $2680 in 2006 to $2710 in 2007. However for other sectors it was a relatively flat performance: art took $175 ($182 in 2006), fashion was $810 ($830 in 2006) and sports was $815 ($825) in 2006, for example.

"Certainly the current soft economic conditions in North America have contributed to the relatively flat performance in 2007, following three consecutive years of growth," explained Charles Riotto, president of LIMA.

"Licensing is a proven way for businesses to create greater brand awareness and add incremental revenue to their bottom line - that hasn't changed, nor has consumers brand loyalty or love of characters and brands.

"In light of what is taking place in the financial and retail communities, I feel our industry performance was very positive and bodes very well for the business of licensing when economic times improve."