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Sales Projections
A forecast of what sales for the licensed merchandise will be achieved over a period of time by the licensee. Sales forecasts are typically used in the fixing of royalty payments to the licensor by the licensee.
Sales Targets
The issues level of sales performance for the licensee over a given period of time. Sales targets are established at the begining of the designated period and are reinforced with a system of regular forecasting and reviews throughout the period.
Sell-Off Period
The time period after the expiration of the license agreement during which a licensee is permitted to sell unsold stock of licensed merchandise. Royalties generated from sales during the sell-off period are not typically credited against the required guarantee.
Service Mark (SM)
A word, slogan, design, picture, or any other symbol used to identify and distinguish a service as opposed to a product. A Service Mark is similar to a Trademark, except that it identifies and distinguishes the source and quality of a service rather than a product.
Signing Bonus
The payment made to the licensor by the licensee at the time of signing of the license agreement. This amount is typically not credited against royalty payments and advance payments.
SKU or Stock Keeping Unit
A unique number that are assigned to each piece of merchandise. Usage of the SKU enables the licensee and the retailers to systematically track their inventory in warehouses and retail stores.
Strategic Licensing Plan (SLP)
A document which is developed by the licensing agent and which is approved by the licensor. It outlines the strategies and details of the licensing program. A well-written plan includes the target list of licensed merchandise, channels of distribution and marketing plans.
Style Guide
A manual (book, CD ROM or website) produced by the licensor which gives information, creative direction and design assets to guide the licensees in the development of licensed merchandise, packaging and collateral marketing materials. Style guides typically include: corporate identity information, typography, color palettes, licensable assets, packaging guidelines, legal requirements and other pertinent information.
Sub Agent
A licensing agent hired by the primary licensing agent to handle a particular aspect of the licensing program such as negotiating a specific "territory" or "product category".