Introduction to Trademark Licensing
Trademarked material falls under the area of intellectual property. Here are some basics about intellectual property, how our trademarks are protected, and how collegiate licensing works.
Understanding UW–Madison trademarks
A trademark is a name, symbol, or other device identifying a product, officially registered and legally restricted to the use of the owner or manufacturer.
Intellectual property is an umbrella term for a university’s visual ownership portfolio including the trademarks, service marks, trade dress, colors, color combinations, team names, abbreviations, acronyms, mascots, nicknames, distinctive landmarks, geographic references in the appropriate context, and other related intellectual property owned or controlled by a university.
As part of UW–Madison’s intellectual property portfolio, the university asserts ownership and all rights, title, and interest in and to its identifying marks – also known as indicia – which include:
- Trademarks
- Service marks
- Trade names
- Designs
- Logos
- Seals
- Symbols
- Mascots
- Slogans
- University slogans or phrases
- Any indicia that is associated with or refers to the university
Trademarks promote and protect the image of the university. When consumers buy licensed trademark goods, they can be assured they are purchasing good-quality, university-approved products that promote the spirit of the institution and that are sustainable and ethically sourced. The UW–Madison trademark licensing program also helps fund student scholarships. Trademark licensing creates a cooperative and positive working relationship between the university, the manufacturers of approved and authorized products, and the retailers and consumers of these products.
Using UW–Madison trademarks
Only companies that are officially licensed by the university are permitted to produce items using university trademarks.
Companies looking to produce apparel and/or hard goods must secure a license. UW–Madison works with Fanatics Licensing Management to help manage the license application process.
In return for the right to use the UW–Madison name and marks on products, a UW–Madison license requires a company (called a licensee) to sign a license agreement, which sets forth the specific rights and responsibilities of the school (the licensor) and the licensee. UW-Madison receives a royalty based on the wholesale cost of the goods, considered the “rental fee” for the use of the university’s trademarks on the product(s).
Impact and responsibility
Licensed manufacturers pay the university a royalty on all products sold. These revenues are shared equally by the Athletics Department and by UW-Madison’s Financial Aid Office for need-based scholarships for UW–Madison students called Bucky Grants.
UW–Madison demands transparency of our partners to assure that our licensed products are responsibly sourced.
Definitions
Licensed intellectual property (licensed IP): An umbrella term for the collection of trademarks owned and controlled by an entity including, but not limited to, service marks, logos, design marks, colors, color combinations, school and team names, abbreviations, acronyms, mascots, slogans, nicknames, distinctive landmarks, geographic references in the appropriate context, uniforms, and official dress.
Property: The entity who owns or holds the rights to IP. In collegiate licensing, universities are considered properties. A property can elect to grant a licensee the right to design, manufacture, market, and distribute licensed products through a license agreement.
Licensing: The process of granting companies the rights through a license agreement to design, manufacture, market, and distribute licensed consumer products bearing the licensed IP of a property for a defined term, through approved retail channels in return for a payment and/or other obligations.
Licensee: The entity or company to whom a license is granted by a property for the right to use its IP in the design, manufacturing, marketing, packaging, promotion, and distribution of licensed consumer products.
Licensed consumer products: The actual items bearing a property’s Licensed IP that the licensee is permitted to design, manufacture, market, and distribute. Examples include T-shirts, hats, mugs, keychains and other apparel, and hard goods.
Code of conduct: Requirements set by a property that licensees must follow related to workers’ rights, working conditions, or other manufacturing policies associated with the development of licensed consumer products.
Royalties: The amount of money paid to a property by a licensee for the right to use the University’s Licensed IP during the term of a license.
Royalty rate: Royalty rates are set by properties. Generally, a percentage of net sales is paid to a property by a licensee for the right to design, manufacture, market, distribute, and sell licensed consumer products.
Retail channel: The various locations where licensed products are sold by retailers are categorized into retail channels. These retail channels can include bookstores, catalogs, department stores, online retail, pharmacies/drugstores, specialty stores, sporting goods stores, supercenter/wholesale clubs, supermarkets, and others.
Stock keeping unit (SKU): Each distinct product sold by a licensee is assigned a unique identification number called a stock keeping unit, or SKU. Design and sales figures for each SKU are submitted by the licensee to the property. This allows the property to assess performance and determine royalties.