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DIME®
Process for the development of a strategic licensing program. It includes the following stages: Development, Implementation, Management, and Evaluation.
Direct-to-Retail (DTR)
Direct-to-Retail is when the licensor appoints a retailer as its licensee. The retailer pays a royalty to the licensor and sources licensed merchandise itself. The royalty to be paid can be based on the retail price or vendors' sales price (i.e., the retailer's cost). DTR deals often donot include a gaurantee while the marketing commitment is an important component.
Distribution Channel
See Channels.
Distribution Start Date
The date after which licensed merchandise is permitted to be sold to customers.
Distributor
An entity that buys goods from a manufacturer to sell them to one or more retailers rather than directly to consumers.
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Earned Royalties
The amount owed by the licensee to the licensor in exchange for the use of the licensor's brand, logo or mark. Earned Royalties are calculated by multiplying the royalty rate by the net (wholesale) sales of all licensed merchandise. Earned royalties are different from paid royalties as the guarantees and advances are included in earned royalties.
Equity
See Brand Equity.
Evergreen Property
A licensing program which has been in existence for a few years and generates royalties in spite of the state of the market. For example, Disney character Mickey Mouse, or Harley-Davidson, etc.
Exclusivity/Exclusive License
The authorization given to a licensee by the licensor of the sole right to produce and sell licensed merchandise in specified territories and distribution channels for a specified term.