AUGUST, 2023 edition Preface Intellectual Property, as the name suggests, rewards the human intellect for its innovations and creations. It is an upcoming and niche field of law, as clients all over the world are realizing the economic potential of strategically utilizing their IP. Areness’s newsletter is a step forward in this direction as it aims to spread IP awareness amongst different stakeholders, in an attempt to provide best in industry insights relating to the IP in industry or domain that we focus on, monthly. This month, we focus on the IP in and around Character Merchandising. www.arenesslaw.com Image Source: webneel.com image subject to copyright
Table of contents About Areness Character Merchandising & Intellectual Property Analysis: Character Merchandising and monetization of IP Crucial judgments on Character Merchandising Story of a Brand - Harry Potter Fun Facts about Character Merchandising Historical Facts about the Character Merchandising A Peek into the Industry of Character Merchandising: Past, Present and Future AUGUST, 2023 edition “You'll never make money out of children's books, Jo!” www.arenesslaw.com
AUGUST, 2023 edition About Areness IPR @ ARENESS Areness is a legal consulting and advisory firm with a strong emphasis on business advisory, establishment of new businesses and providing everyday solutions to its clients. Over the last decade our involvement in the field of professional services has grown manifold and we hope to continue to expand at even a higher pace. Our teams are dedicated and passionate about their work and truly abide by the core values of professional ethics and compassion for the society at large. Covering one of the widest array of services with a team of experts in-house, Areness is working with one of the country’s leading names in various industries and sectors. Besides offering professional services, Areness is also into legal education, legal tech and legal research. We have been pioneers in exploring new realms of law and ensuring its application within various machineries of law for the common good. Understanding the value of assets in Intellectual Property in today’s era, we render assistance in identifying, protecting and promoting IP assets through due diligence, brand audits, clearances and regulatory compliances, dispute resolution and enforcement, managing portfolios. It is imperative to protect as well as enforce your Intellectual Property Rights to ensure that they are safely promoted. Our legal team evaluates the potential infringement and provide the strategic and tactical counsel to avoid infringement of the existing Intellectual Property. Areness provides wholesome, preventive and curative advice on filing IP applications, IP due diligence, brand audits, prosecution of product disparagement and false advertising actions in courts and tribunals. Our understanding of the business industry is our USP and it helps us to warn our clients about potential infringement as soon as possible. We further understand how it is important for a business to monetize over their IP and therefore, we provide strategic advice to our clients pertaining to the way in which they can monetize and build their IP in a manner that it remains relevant and profitable for the years to come! www.arenesslaw.com
AUGUST, 2023 edition Character Merchandising & Intellectual Property Once a character is created by a creator, it has its own set of intellectual property that may vest in it. A concept that however, promotes monetization over and above the royalties that a creator may earn through the books/ articles/ other forms of expression through which a character is created is character merchandising. Character merchandising is the adaptation or secondary exploitation, by the creator of a fictional character or by a real person or by one or several authorized third parties, of the essential personality features (such as the name, image or appearance) of a character in relation to various goods and/or services with a view to creating in prospective customers a desire to acquire those goods and/or to use those services because of the customers’ affinity with that character. One of the best tools to commercially exploit your IP if you are an author is to go the merchandising way. Who introduced the concept of character merchandising? Beatrix Potter, a writer and a shrewd businesswoman revolutionized how writers could capitalize over their intellectual property by laying the foundation stone of this concept. In the early 1900s, Beatrix Potter's characters gained immense popularity since they were widely merchandised in the form of toys, puzzles, stationery and more. This enabled the readers to connect with the characters outside of the original stories. Potter’s proactive approach to licensing and merchandising her characters helped establish the idea that fictional characters could become not just literary figures but also beloved consumer products. Overall, character merchandising has flourished owing to the commercial exploitation of your valuable intellectual property. Ultimately, an owner earns significantly through judicious exploitation of their intellectual property. The impact of character merchandising is so significant that it has not just popularised your character rather it has made your character impossible to forget since the consumer based products continue to circulate in the market as an advertisement and reminder of your iconic character. This cute little headband with mouse shaped ears and a bow instantly reminds you of the popular character by Walt Disney: Micky Mouse. Impact: www.arenesslaw.com
AUGUST, 2023 edition Broadly, there are three types of Character Merchandising: One of the most popular forms of merchandising, fictional merchandise is simply when you merchandise a fictional character. Where the personal attributes of a personality are commercialised through merchandising. Where the character played by an actor in a film is commercialised through merchandise of the said actor's character. This usually happens when the character becomes inseparable from the actor playing it. Example: Tony Stark IP in Character Merchandising Various forms of IP accord different forms of protection to a character and thereafter it's merchandise: Copyright In context of the concept of character merchandising, copyright plays a pivotal role in according due protection to the literary/visual work that created the character in the first place. Copyright here does not just vest in the original character rather it also vests in the adaptations of the characters (to the extent that they're original forms of expression). Types of Character Merchandising Fictional Merchandising Personality Merchandising Image Merchandising www.arenesslaw.com
AUGUST, 2023 edition Trade Mark Trademarks provide protection over the brand name of the character. It ensures that no third party is able to use an identical/ similar name to denote their character. Trademarks further act as a source of identification of the character thereby signifying that a particular character belongs to a particular author/ franchise. For example, Harry Potter who belongs to JK Rowling/ WB Studios. Designs Designs protect the overall aesthetic appeal of a product. They protect the novel creations of artists/ creators that have an appeal and that are capable of industrial production. Mostly, with respect to the field of character merchandising, the overall theme of 3D characters, cartoons, etc., are protected under the regime of designs. Further, once these are converted to merchandise, for example, in form of toys, etc., the same would also be protected vide designs. Impact of IP in Character Merchandising The freedom to create fearlessly is achieved through the protection that one's original laborious creations receive via the intellectual property law regime that vests in the said creations. Further, one of the biggest advantages of creation of such works is that the creator enjoys the freedom to commercially exploit their intellectual property and thereafter, reap the benefits of the hard work that the creator has put in. www.arenesslaw.com
AUGUST, 2023 edition Analysis on Character Merchandising Recall the nostalgic moments when kids fervently desired the Ben10 school bag or the Dora the Explorer food basket, all because they adored those characters from their favourite TV shows. The sheer joy they experienced upon discovering Ben and Dora featured on those items! Similarly, reflect on those instances when you purchased clothes, sunglasses, or shoes because your most cherished celebrity appeared on them—perhaps even that jersey you proudly sported, inspired by none other than Cristiano Ronaldo! This time-tested marketing strategy, known as character merchandising, has remained a steadfast force in the industry, continually generating billions of dollars in global revenue each year. The brilliance of this captivating marketing technique lies in its ability to capitalize on the popularity and allure of both fictional and real-life characters, compellingly propelling product sales and services. But Why Character Merchandising? The Fortune behind Character Merchandising Character merchandising hosts a plethora of benefits for your character. We've enlisted some for your reference: Endless possibilities: you have endless possibilities in this arena by creating merchandise of your beloved character through different means. Advertising: Your merchandise serves as a means of consistent advertising of your character. It becomes absolutely unmissable once you sharply merchandise your character and allow it to propagate into different sectors of the market. Relevant & Unforgettable: Your loyal customers remember the character forever! Suppose, your character is a part of a series, your character would continue to stay relevant in the market till you bring out the next season/series. If your character's series have ceased to exist, fret not - your merchandise keeps its alive. Double your earnings: It acts as an additional source of income if you start merVarious franchises have earned far more through this medium owing to application of smart marketing techniques. Leading the pack is Pokémon, a powerhouse not only in video games but also in merchandising. With a jaw-dropping 60 billion dollars raked in from merchandise alone, Pikachu and friends are not playing around. But wait, there's more – their video games add another staggering 60 to 75 billion dollars to their treasure chest. www.arenesslaw.com
AUGUST, 2023 edition Who can create merchandise over a character? Forms of Character Merchandising Next up, we have the Star Wars films. With lightsabers, droids, and intergalactic battles, they've managed to pocket an impressive 40 billion dollars. Not too far behind, the magical world of Harry Potter enchants its way into our wallets, boasting a cool 30 billion dollars. Let's not forget our caped crusader, Batman, who's been soaring through the merchandising skies with around 25 billion dollars to his name. And, of course, Barbie, the iconic fashion doll, struts her way into the scene with about 30 billion dollars. These numbers are a testament to the immense earning potential of turning beloved characters into merchandise. So, next time you see that Pikachu plush or Darth Vader action figure, remember, it's not just a toy – it's a piece of an industry worth billions, where imagination turns into gold. One may choose to merchandise any aspect or all aspects of the character provided that he is the: 1 Original creator 2 Holder of the rights (through contractual transfer of rights) 3 Holder of rights via operation of law (for instance, in case of death of creator, you may become the holder of rights through inheritance) 4 An authorised user. For the most part, the original creator of the character is rarely involved in the merchandising process. Rather, the creator usually transfers their rights in their work to others for various forms of exploitation who further create merchandise of the characters. Toys based on the character Skincare, Healthcare and body care products Board Games Mobile gaming applications & other character based applications Clothing, footwear Themed Cafés Theme Parks www.arenesslaw.com The possibilities are endless. An owner can create different forms of merchandise of their character like:
AUGUST, 2023 edition Themed Accessories (hairbands, helmets, jewellery, belts, bags etc.,) Creation of special series based on a particular character from a book Wrapping Paper and other paper products Back to School Products - Stationery (posters, pencils, notepads, pens, markers, pencil box etc.,) Sports Accessories Themed Music Instruments Baby products Interactive CDs & books Mobile Covers and Customised phones Collaboration with cafés for launching a themed menu Collaboration with other brands for launching themed products Home decor Wearables (watches, earplugs, sunglasses, rings) Themed Food & Beverages (in FMCG sector). & more. As it is apparent, the possibilities are endless in this area. Owner of a character can monetize over their intellectual property in several ways. Therefore, the area is absolutely lucrative and something that acts as a rewarding system for your intellectual property. Creation of Character through Artistic/ Literary/ Visual means Licensing of work to a publisher for publication via Physical / Online mode Creation of a Movie/ Series based on the Character Launching of Merchandise based on the Character Creation of sequels based on the previous work www.arenesslaw.com
AUGUST, 2023 edition Crucial Judgments in Character Merchandising Aprile and Commerciale Italiana v. EUIPO-DC Comics Issue: The issue in the case of Aprile and Commerciale Italiana v. EUIPO-DC Comics revolves around the validity and distinctiveness of the Batman logo as an EU trade mark. COMMERCIALE ITALIANA S.R.L sought to invalidate the trade mark registered by DC Comics, claiming that it lacked distinctiveness and was descriptive. Decision: The European Union Intellectual Property Office (EUIPO), the Cancellation Division, the Board of Appeal, and the General Court ruled in favor of DC Comics. They affirmed the validity of the Batman logo as an EU trade mark for goods under Classes 25 and 28. They rejected COMMERCIALE ITALIANA S.R.L's application for invalidation and dismissed their argument that the trade mark lacked distinctiveness. Impact: The decision has several impacts. Firstly, it upholds DC Comics' rights to the Batman logo as a distinctive EU trade mark, granting them exclusive use for goods in Classes 25 and 28. This reaffirms the strong association between the Batman character and DC Comics as the source of these goods. Secondly, the case sets a precedent that mere association of a trade mark with a fictional character does not automatically undermine its ability to indicate the origin of the goods. Additionally, the court's clarification on the meaning of distinctiveness emphasizes that a trade mark must identify goods' origin, setting a standard for future trade mark disputes. Lastly, the dismissal of the invalidation application highlights the importance of providing specific evidence when challenging a trade mark's validity, underscoring the burden of proof for parties seeking invalidation. But, when that light hits the sky, it's not just a call. It's a warning... to THEM. www.arenesslaw.com
AUGUST, 2023 edition King Features Syndicate Inc. v. O & M Kleeman Ltd. Issue: The central question in this case revolved around whether copyright protection could extend to a two-dimensional drawing serving as the source artistic work, particularly when it was transformed into a three-dimensional toy figure. The dispute stemmed from the iconic cartoon character "Popeye," initially conceived as a two-dimensional creation and later adapted into a three-dimensional toy. Decision: The court ruled that converting a two-dimensional drawing into a three-dimensional toy figure constitutes copyright infringement. This decision affirmed the notion that protected expression emerges when an original idea is translated into tangible form. Consequently, the depiction of Popeye's character in the drawing was deemed eligible for copyright protection under the prevailing laws. Impact: The King Features Syndicate case set a significant precedent within the realm of Copyright laws. It underscored a fundamental principle: the moment an original idea is translated into tangible form through the strokes of a pen or brush on paper or canvas, it automatically qualifies for copyright protection. This landmark ruling reaffirmed the paramount importance of originality and established a clear link between creative expression and the legal safeguards granted by copyright regulations. www.arenesslaw.com
Issue: In this case, a crucial concern arose when it was brought to the attention of the Plaintiffs that the Defendants were involved in various commercial activities like retailing, selling, and trading stationery items that prominently featured the Plaintiffs' copyrighted materials. These materials included beloved & admired characters such as "Hannah Montana," "Donald Duck," "Mickey Mouse," and "Winnie the Pooh," without obtaining the necessary permission from the Plaintiffs. AUGUST, 2023 edition Aprile and Commerciale Italiana v. EUIPO-DC Comics www.arenesslaw.com Impact: The ruling emphasized the strong association between the characters and the source brand. The Court recognized that any reference to these characters inherently brings the Plaintiffs to mind. The decision underscored the importance of protecting intellectual property and maintaining the exclusive connection between characters and their creators. The case highlighted the necessity of proper contracts and authorized usage to prevent unauthorized exploitation of valuable intellectual property assets. Decision: The Hon’ble Delhi High Court concluded that the Plaintiffs (Disney Enterprises Inc.) held the exclusive rights to merchandise these characters. As a result, the Defendants (Santosh Kumar) were held accountable for their unauthorized sale of products featuring representations of the characters. The court ruled in favor of the Plaintiffs, ordering the Defendants to cease their infringing activities and awarding damages of Rs. 5 lakhs to the Plaintiffs.
AUGUST, 2023 edition Issue: The case at hand centers around the well-loved character 'Noddy', a whimsical creation by Ms. Enid Blyton in the 1940s. Noddy, a wooden boy with a jingling blue hat residing in Toy Land, captured the hearts of children. BBC Worldwide, the plaintiff's licensing and marketing agent in India, along with the Plaintiff are engaged in merchandising activities worldwide for the 'Noddy' trademark. The dispute emerged when the defendant adopted the term 'NODDY' as their trademark in 1991 for the kids wear clothing range, asserting honest and independent acquisition of goodwill. This raised questions of exclusivity and the character's fanciful nature. Decision: The court found that unauthorized use of 'NODDY' in connection with goods or services could weaken its distinctiveness and lead to passing off. The actions were deemed detrimental to the plaintiff's mark, causing irreparable damage to its reputation and brand value. The plaintiffs couldn't secure an injunction due to the defendant's prior registration and use of 'Noddy' as a trademark for apparels. The verdict highlighted the importance of protecting trademarks for relevant goods and services when pursuing merchandising activities. Impact: The plaintiff had safeguarded its global trademark rights for the character across multiple countries. This case established the unconventional use of a fictional character as a trademark or trade name, based on its potential to attract customers. The character itself had gained an independent reputation as a valuable commodity, transcending its original context or associated goods and services. This ruling underscored the significance of strategic trademark protection to support merchandising efforts effectively. Chorion Rights Ltd. v. Ishan Apparel & Ors. www.arenesslaw.com Image Source: IMDb image subject to copyright Image Source: Pintrest.com image subject to copyright
AUGUST, 2023 edition Issue: The case in question revolves around the renowned music artist, Daler Mehndi. The defendant, Baby Gift House – The Toy Shop, along with two other similar businesses, engaged in the sale of dolls that strikingly resembled the artist. Allegations were raised against these businesses, claiming that their actions constituted unauthorized use and exploitation of the artist's likeness. This unauthorized commercial activity was seen as a violation of the artist's rights and a copyright infringement of the song "Bolo Ta Ra Ra Ra." Decision: The court issued an ex-parte restraining order against the defendants. A local commissioner's report revealed that these products originated from China. The defendants claimed ignorance of the legality involved and expressed their disinterest in continuing sales after learning of the issue. The court emphasized that the "right of publicity" guards against the unauthorized appropriation of an individual's persona for another's commercial gain. While this situation might not confuse consumers about the source of goods or services, it would still weaken the power of well-known trademarks to indicate their source. Utilizing Mr. Mehndi's persona and name for commercial purposes was deemed illegitimate and dilutive of his unique personality. This activity falsely implied a connection that didn't exist between the plaintiff and defendant. Impact: The Delhi High Court's judgment left a significant impact, asserting that even if confusion about the source of goods or services isn't apparent, the reputation of a well-known trademark could still be harmed by diminishing its power to indicate origin. Though the widespread exploitation of the artist's persona for commercial gain wasn't proven, the court awarded token damages of Rs. 1,00,000 as a recognition of the violation. This case reinforced the importance of protecting an individual's persona and maintaining the integrity of well-known trademarks. D.M. Entertainment Pvt. Ltd. V. Baby Gift House & Ors. www.arenesslaw.com
Story of a Brand: Harry Potter AUGUST, 2023 edition JK Rowling, on a train from Manchester to London devised a magical world encompassing three children which would unintentionally go on to change the literary world forever. Traits of the legendary series are ubiquitous, it is undoubtedly the most popular children's fictional franchise. This franchise has gone on to build an empire known as the wizarding world. The wizarding world has become a brand which encompasses Harry Potter merchandise, tourist attractions, gift shops, theme parks around the world, toys, franchise collectibles, video games, newer literary work and their adaptation, online forums, fan spin off literature, and theatrical adaptations. Earnings through intellectual property of the Harry potter series: Original Movies (Box office) - The 7 Harry Potter books which were adapted into 8 movies, 1179 minutes in total the production of these movies took 1.155 billion Dollars, the eight movies saw varying box office collections with “Deathly Hallows part 2” being at the top, the cumulative box office collections for the movies is 7.73 billion Dollars. The franchise has seen a 6.7 times percent return for just its movies. Books - The series has been published in 80 languages and has sold over approximately 500 million copies, generating a revenue of another 7.7 billion Dollars (JK Rowling just pulled in another 95 million as royalties from “cursed child”). Theme Parks and stores – The Wizarding World of Harry Potter is a prime example of how a fictional world can be commodified into an experience. The copyrights to the wizarding world and its endless elements are divided amongst JK Rowling and Warner Bros Studios who monetize this IP through various mediums such as merch. Warner Bros have partnered with Universal Studios to bring the harry potter world into real life, the addition of the harry potter portion to the universal studios across the world saw an increase of 32% in attendance between 2010 - 2020, out of the total revenue between that time earned by the Universal Studios, it is said that 11.84 billion dollars has been for the harry potter attractions. In addition to this, the series also has its reach near London where they have the official harry potter studios which is separate from the theme parks which earned 47.5 million British pounds in 2020 through their “the making of harry potter” tour. The wizarding world also has Harry potter themed stores which are specialized gift shops selling movie replicas and alike at exuberant rates. It was reported in 2019 that over a span of 15 months, three such stores earned over 26.1 million dollars. There are various license holders producing harry potter merchandise some of them operating in India are Hamleys India, Bigsmall.in, Hottopic India, Marks & Spencer, Souled store, redwolf, etc. www.arenesslaw.com Image Source: FineArtAmerica.com image subject to copyright
AUGUST, 2023 edition Theatre – An addition to the wizarding world by JK Rowling was “Harry Potter and the cursed child”. Besides the immense book sales the literature was adapted into a theatrical production which raked in over 2 million dollars till 2018 and became the Guinness world record holder for the highest grossing play in history. Scholastic, the publisher for the series in USA, reported that 2 million copies of the script for the theatrical production have been sold till 2016. Forbes, in 2019 reported that the play has earned over 146.5 million dollars since its inception in 2016. Toys – toys and other children's articles are a lucrative branch of the wizarding world. Most of them sold through official and authorized stores. Warner Bros' partnership with Lego has proved to be extremely beneficial for them. It is said that the toy industry under the harry potter empire has brought in over 7.3 billion dollars as of 2018. Merchandise is whole other lucrative factor for harry potter income, there are various official exclusive harry potter stores around the world. Potter more – in 2012, Rowling launched a website for potter heads, which undertook digital publishing, entertainment, news, and commerce. It is reported that 209 million dollars were earned by the website between 2014 to 2019. Extensions of the wizarding world – JK Rowling also wrote more books after the support the original books received. These books were an extension of the wizarding world and consist of three films. These three films collectively have box office collections of 1.865 billion Dollars. Games – the harry potter franchise has been the spin off ground for many games based on the premises and theme of the series, 20 games have been launched so far under the wizarding world empire, the first was in 2001. The newest one “Hogwarts Legacy” was launched in 2022 and is said to be one of the most awaited elements of the wizarding world. These games in total have earned up to 1.9 billion Dollars. DVDs – The legendary movies are not available on the big screens however that hasn’t stopped people from purchasing the DVD's of the movies, as of 2018, the DVD's have pulled in a sum of 2 billion dollars through DVD sales. JK Rowling initially signed a two-book deal with Warner Bros Studios for the film adaptation of the series, but she never thought that the series would reach the lauded levels. The engrossing nature of the novels resulted in an eight films adaptation of the literary work. www.arenesslaw.com
AUGUST, 2023 edition Warner Bros is the owner of the “Harry Potter'' trademark and has licensed it to various vendors for manufacturing 400 different products under the harry potter mark. For example – WB has licensed the toymaker Hasbro to distribute official harry potter themed sweets such as “Cockroach Clusters, Chocolate Frogs and Fizzing Whizbees”. Users have spent more than 11.8 million dollars on such sweets since 2001. Mattel, the toy maker, has acquired rights to produce action figures from the Harry Potter series after which the company's shares rose by 13.5 per cent. Electronic Arts, a video game company acquired rights over the harry potter mark and story to produce themed videos games and coca cola secured rights to market its products along with the mark. It is touted that the global “Harry Potter market” estimates to 4 billion to 8 billion dollars in worth. The music tracks from the series were produced by John Williams and have sold over a million copies in the United States. Intellectual Property related action for harry potter In October 2007, Warners Bros studios filed for a suit for infringement against a group of people based in Kolkata who during the occasion of Durga pooja, constructed a replica of the famous school in the harry potter films “Hogwarts”, the court said that no compensation may be allowed since the activity undertaken was not for profit and no copyright infringement could be deduced, however the court ruled in favor of Warner Bros , the lawyers for Warner Bros contended that the defendants were not religious groups, and their event was not a religious festival. It was a large-scale, commercial event that was sponsored by corporations, including a major Indian bank. JK Rowling's wealth did not come standalone from her novels, it came from the potter mania that followed which helped the inception of the world craze for the wizarding world, this would never have happened if they were novels alone, these novels lay as the foundation for many other opportunities to fall. Intellectual rights were partially transferred to Bloomsburg, the London based publishing house and then the IP rights of the series were transferred to Warner Bros for the picturization of the literature, during this process the IP not only shifted but also evolved, it required artists on service to visualize the characters, sets, and other elements all of which are protected intellectual rights of Warner Bros or JK Rowling. In 1998, Warner Bros purchased film rights for the first two novels, now Rowling and Warner Bros jointly own copyright and trademark rights for “J K Rowlings Wizarding World” which includes the movies, a website and related goods and services. www.arenesslaw.com
AUGUST, 2023 edition Fun facts about Character Merchandising Disney's first merchandise not mickey? A week before the most anticipated FRIENDS REUNION, actor Matthew Perry, known for his role as Chandler Bing in the beloved sitcom, introduced a collection of limitededition merchandise. This line of products was inspired by Chandler Bing's character and his well-known sarcastic humor. The announcement came through an Instagram post on Thursday, where Parry was featured sitting in a chair wearing a T-shirt bearing the catchy phrase, "Could I be more me?" The merchandise release added to the excitement surrounding the Reunion special. The very first merchandising of a Disney character wasactually that of Oswald the Lucky Rabbit: in the form of a button, a stencil set, and a marshmallow coated in chocolate. However, it was the character Mickey Mouse that propelled Disney to real stardom — marking the rise of Disney marketing. And it all started with a children's pencil tablet, in 1929. With a viewership exceeding 40 million among children, Chhota Bheem stands as India's foremost 'Toon Icon.' Sudeesh Varma, the head of Green Gold Stores, noted that this marks the first instance of a domestically created animated character that holds substantial merchandising potential. Alongside Chhota Bheem and Mighty Raju, the company possesses other successful animated brands like "Krishna Balram," "Luv Kush," and "Chorr Police." These characters have garnered considerable popularity in the realm of merchandise, and the company inaugurated its initial store in Hyderabad back in 2011. www.arenesslaw.com Image Source: chhotabheem.fandom.com image subject to copyright
Historical Facts about Character Merchandising AUGUST, 2023 edition Walt Disney & Character Merchandising Disney Characters' Merchandising The concept of Character Merchandising was introduced by Beatrix Potter, a sharp and smart business woman & writer who brought her characters to life through introduction of various methods of merchandising to the world. She laid down the groundwork and created another source of income for authors/ creators who invested significant mental labour into creation of such characters. Creating iconic characters like Mickey Mouse, the studio's employee,Kay Kamen, successfully licensed these characters for various low-priced merchandise, including toys, T-shirts, and more. The concept of secondary exploitation of character reputation existed earlier but was not commercial in nature. Over time, character merchandising expanded globally, covering various fields, from universities to sports events and art exhibitions, proving to be a powerful marketing tool and a significant revenue generator. Today, character merchandising remains a central aspect of global consumer culture, connecting fans with beloved characters and generating substantial financial returns. The journey of character merchandising started with Walt Disney's Oswald, the lucky rabbit and thereafter the landmark creation, Mickey Mouse, in 1928 which was an instant hit. As a symbol of the "American Dream," Mickey Mouse quickly captured the hearts ofaudiences worldwide, and his popularity paved the way for a new approach to marketing and brand building. Walt Disney recognizedthe potential of merchandising his beloved character to a broader audience beyond the screen. www.arenesslaw.com Image Source: eduaspirant.com image subject to copyright
AUGUST, 2023 edition Disney Movie Era Snow White and the Seven Dwarfs, Disney's first full-lengthanimated film in 1937, revolutionised the film industry by introducing character merchandising. With toy boxes and collectible dolls, it set a new trend, paving the way for later films to merchandise their characters and expand their reach beyond the big screen. This groundbreaking move transformed how movies connected with audiences and inspired the use of merchandise as a powerful marketing tool in the entertainment industry. Disney, in particular, continued to refine its merchandising approach with each film release, creating a seamless integration between the cinematic experience and consumer products. As new beloved characters were introduced in subsequent films, they became iconic figures that adorned countless products, making them an essential part of popular culture. www.arenesslaw.com In 1930, just two years after Mickey Mouse's debut, Walt Disney granted the first-ever license for Mickey's image to a stationery company. This groundbreaking move laid the foundation for the modern character merchandising industry. Soon, Mickey Mouse's likeness appeared on a wide range of products, from toys and clothing to accessories and household items. The success of these early ventures demonstrated the power of charactermerchandising in boosting brand visibility and driving sales.
A Peek into the Industry of Character Merchandising: Past, Present & Future The Past: Building the Foundation AUGUST, 2023 edition Imagine a world where beloved characters from blockbuster movies, binge-worthy TV shows, thrilling video games, captivating books and enthralling comics come alive beyond the screens and pages. This enthralling practice of transforming fictional dreams into tangible treasures, known as character merchandising, ingeniously harnesses the charm of these characters to curate an extensive selection of irresistible consumer goods. From its humble origins to its current dynamic state, and with an eye towards its potential future, character merchandising has undergone a fascinating evolution. It all begins with the acquisition of licensing rights, enabling the utilization of characters' iconic likenesses, names, and other captivating elements. The outcome? A kaleidoscope of consumer products that range from collectibles to clothing, toys to accessories, and so much more. Where it all started! The concept of Character Merchandising was introduced by Beatrix Potter, a businesswoman & writer who brought her characters to life. In the Beginning: The Toy Industry Sparks the Flame The spark of potential ignited within the toy industry, with a visionary pioneer emerging in the form of Walt Disney in the 1900s. The potential of character merchandising was observed in the form of tees, badges, and posters adorned with the iconic likes of Mickey Mouse, Minnie Mouse, and Donald Duck who graced the scene, captivating hearts and marking the dawn of a new era. Foundation Laid in the Squeaking 20s Flash back in the 1920s when Mickey Mouse, creation of Walt Disney and Ub Iwerks, made his sensational debut. The release of "Steamboat Willie" in 1928 not only showcased Mickey's animated charm but also pioneered the concept of leveraging characters for merchandise. The world witnessed Mickey Mouse's enchantment transcending screens to find a place in the world of toys, books, clothing, and beyond, forever altering the relationship between media and consumer goods. www.arenesslaw.com
AUGUST, 2023 edition USA’s Landmark: Disney’s Character Merchandising Department Journey to the 1930s when Walt Disney Studios pioneered character merchandising with a dedicated department. From classic icons like Mickey Mouse and Donald Duck to modern additions like Elsa and Nemo, Disney's range of products has not only gained acclaim but flourished both online and offline. From Pages to Products: Comics and Beyond The enchanting transformation of comic book heroes from pages to tangible treasures was soon explored. Iconic characters like shaikari shambu and suppandi from Tinkle Magazine leaped from comic strips onto clothing and even refrigerator magnets, captivating young hearts and filling homes with joy. Soon, icons from Archie comics and Marvel and DC Comics became the favoured options for crafting merchandise. Golden Age of TV: Characters Step into Reality The television boom of the 1960s-1980s witnessed the birth of animated TV shows like "The Flintstones," "The Jetsons," and "Scooby-Doo". These shows masterfully transformed characters from the screen to store shelves, proving the power of characters in influencing consumer behaviour, especially amongst the young. From Tales to Treasures: Disney's Renaissance Influence The 1990s marked a significant turning point, as the Disney Renaissance brought a wave of enchantment to character merchandising. Animated classics like "The Little Mermaid," "Beauty and the Beast," and "The Lion King" not only wove captivating stories but also ignited a merchandising frenzy. The beloved characters, from Ariel to Simba, captured hearts and found their way onto clothing, toys, and a dazzling array of consumer goods. Bringing Characters to Life: Beyond Advertisements Delving into the captivating tales of the 'Michelin Man' and the charming ZooZoos. The Michelin Man's popularity led to an online Collectors Store, offering figurines and prints. Vodafone India teamed up with Shoppers Stop in 2009, introducing a line of clothing and more, adorned with ZooZoos characters. A Glimpse into Tomorrow: Characters Paving the Way Forward Witnessing Mickey Mouse's humble beginnings as a merchandising trailblazer paved the way for the dynamic interplay between animated shows, action figures, and iconic franchises. This transformative odyssey lays the very foundation for the vibrant present and promising future of the industry. Uncovering the profound lesson that character merchandising has taught us, Characters are not just vessels for storytelling; they are also potent catalysts for forging emotional bonds andfostering unparalleled consumer engagement. This revelation revolutionized how characters are perceived – they are now cherished companions that accompany us in our daily lives. www.arenesslaw.com
AUGUST, 2023 edition The Present: A Global Industry A Multifaceted Modern Era While exploring, one can easily observe the dynamic landscape that character merchandising has become – a global phenomenon that's capturing hearts and transcending boundaries. The beloved characters from various media have taken center stage, shaping a vibrant industry that spans products, digital realms, and innovative consumer strategies. This modern era is defined by the convergence of entertainment, technology, and ever-evolving consumer preferences, all together crafting an immersive experience unlike any other. Influencers: The new Vanguard As the tide of social media rises, influencers have taken a spotlight in merchandising campaigns. With an authentic blend of relatability and charisma, influencers resonate deeply with their dedicated followers, creating a new dimension to character-driven marketing. Global Galore: Crossing Borders and Cultures Character merchandising has evolved into a colossal global industry, a force that transcends geographical and cultural confines. Characters from reel world have become the driving force behind an extensive array of products. Behold the redefining influence of timeless franchises like Star Wars, Marvel, Harry Potter, and Pokémon, reshaping the very essence of character-driven marketing. Digital Frontier: Characters in the Gaming Realm Diving into the realm of gaming, where character merchandising takes on a digital twist, games like "Fortnite" and "League of Legends" empower players with the ability to personalize their in-game avatars through skins and items. These sought-after collectibles, often featuring characters from diverse media, forge a unique bridge between gaming and entertainment, blurring the lines of virtual and real. For example, "Fortnite" has collaborated with Marvel and DC to introduce skins of iconic characters like Iron Man, Batman, and Wonder Woman, creating a bridge between the gaming and entertainment worlds. Embracing Diversity and Inclusivity Witnessing how the call for inclusivity and diversity echoes in character merchandising, companies like Mattel are reimagining classics like "Barbie" to reflect a spectrum of body types, ethnicities, and professions. This shift acknowledges the importance of mirroring a rich tapestry of identities in the world of character-driven merchandise. www.arenesslaw.com
The Future: Emerging Trends and Possibilities AUGUST, 2023 edition Beyond Formats: Marvel’s Cross-Media Integration Marvel Cinematic Universe masters the art of seamless cross-media integration. Characters and narratives fluidly weave through movies, TV shows, and streaming platforms. This synergy extends to merchandising, where iconic figures like Iron Man and Spider-Man grace not only tangible products but also digital domains through apps and virtual collectibles. Memories interlocked with Magic: Character Dining at Disney Parks Disney’s enchanting parks invite you to dine with beloved characters. Imagine sharing a meal with costumed characters from cherished franchises. This immersive experience crafts everlasting memories as families forge emotional connections in person, creating moments that linger in hearts. Immersive Realities: VR and AR Engagements Stepping into the realm of virtual and augmented reality, where immersive character experiences await, the core example of usage of AR is the video game “Pokémon GO” where virtual Pokémon is brought into the real world through mobile devices. This fusion of virtual characters with tangible surroundings deepens the connection and engagement like never before. Embracing Diversity and Inclusivity Witnessing how the call for inclusivity and diversity echoes in character merchandising, companies like Mattel are reimagining classics like "Barbie" to reflect a spectrum of body types, ethnicities, and professions. This shift acknowledges the importance of mirroring a rich tapestry of identities in the world of character-driven merchandise. Digital Delights and Virtual Ventures In the imminent future, one can easily evidence the enchanting realm of digital and virtual merchandising. As technology's embrace grows tighter, character merchandising is quick to adapt. Picture this: non-fungible token (NFT)-based collectibles that breathe life into virtual treasures, virtual wearables for avatars, and augmented reality escapades that transport you to immersive character experiences. www.arenesslaw.com
AUGUST, 2023 edition The Metaverse emerges as an exciting frontier, where physical constraints dissolve, supply costs shrink, and access to the global market soars, sparking a character merchandising revolution. The Metaverse's visual allure and the hunger for owning digital pieces of iconic characters propel this transformative shift. For instance: Warner Bros., launched an NFT collection to promote the release of ‘The Matrix Resurrections’, generating millions in windfall from the sale of such NFTs, along with standard character merchandising revenues as well. Sustainability: Crafting Greener Narratives With environmental awareness on the rise, the character merchandising industry might rewrite its plot with sustainable ink. Brands might adopt eco-friendly materials and responsible & ethical manufacturing processes, resonating harmoniously with socially conscious consumers. Embracing Global Diversity A digital tapestry unfolds as the internet's vastness allows character merchandising to embrace a world audience. The internet's global reach enables brands to tap into markets worldwide. Character merchandising could become even more diverse and inclusive, embracing characters and narratives that resonate with various cultures and demographics. Unifying Narratives: Cross-Media Integration In the future, prepare for a symphony of storytelling as different media forms join hands. Characters could seamlessly transition between movies, TV shows, video games, and books, fostering a cohesive narrative across platforms. Values of Cornerstones: Ethical Consumerism The character merchandising scene evolves with brands that tread ethically conscious paths. Aligning with societal values and noble causes isn't just admirable – it's strategic. With conscious consumers seeking products that mirror their beliefs, ethical resonance could be the key to the kingdom. Echoes of Nostalgia and Retro Revival The cyclical nature of trends might lead character merchandising back in time, evoking nostalgia while beckoning new generations. www.arenesslaw.com
AUGUST, 2023 edition A New Dimension of Engagement Advancements in virtual reality (VR) and augmented reality (AR) technologies could enable fans to engage with characters in entirely new ways. Interactive experiences and immersive storytelling could become integral to character merchandising strategies. The Road Ahead As we gaze toward the horizon, the future of character merchandising beckons with promises of innovation and transformation, all while the emotional bonds that fans share with their beloved characters remain steadfast, weaving a tale of lasting connections. www.arenesslaw.com
Circular by Department for Promotion of Industry & Internal Trade AUGUST, 2023 edition www.arenesslaw.com The DPIIT has invited suggestions or comments regarding revision of existing or issuance of fresh IP manuals and guidelines by 15th October 2023.
Look out for : September, 2023 issue AUGUST, 2023 edition www.arenesslaw.com IP & Advertising Industry IP & Advertising Industry
Disclaimer AUGUST, 2023 edition www.arenesslaw.com The images/logos contained within the newsletter are for representative purposes only and the relevant IP rights vesting in the said images/logos belong to the respective owners. The present newsletter consists of information based on the team's research and should not in any manner be construed as a legal advice. We are not responsible for any change in the legal landscape pursuant to publication of this newsletter. The newsletter is an initiative by Areness to create awareness and provide insights relating to Intellectual Property.