Licensing Corner - December 2018 Issue

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WHAT’S MORE

Analysis Of Licensing Scenario In India

INDIA’S FIRST MAGAZINE ON THE LICENSING INDUSTRY

MAKING YOU AND YOUR EVENT SHINE

www.licensingcorner.com

FROM THE

EDITOR’S DESK never stop

dreaming

Rutika Malaviya Founder, CEO & Editor - in - Chief

Licensing Corner

Meet The

Team Sub - Editor : Sutikshya Mallick Design & Layout : Rohan Kulkarni

I

am happy to present the year-ender edition of the ‘Licensing Corner’ Magazine. Licensing Corner organised its grand corporate event ‘The India Brand Licensing Summit’ on December 5 at Mumbai’s Grand Hyatt.

The event featured who’s who from the brand and retail space exploring the driving factors and changing dynamics of the India brand licensing industry. We present a detailed report on it!

Intellectual Property is fast becoming a mainstream phenomenon in India. We present an exclusive expert report on the growth of intellectual property market in 2018 and outlook in 2019.

What’s more! The issue will offer interesting insights from Shemaroo Entertainment and Green Gold Animation.

Licensing model in India has been thriving in categories such as fashion, media and entertainment, sports and fitness, back-to-school categories. We present a total detailed analysis of the scenario of licensing in India.

Website Designer & Developer : Gaurav Tiwari

Happy Reading!

Editorial Team : editor@roohentertainment.com

Rutika Malaviya

Advertising Enquiry : rutika@roohentertainment.com Media Partnership : media@roohentertainment.com

110, Laxmi Plaza, Laxmi Industrial Estate, SAB TV Lane, New Link Road, Andheri (West) Mumbai - 400053. (INDIA)

022 - 40101824 info@roohentertainment.com www.licensingcorner.com

THE INDIA BRAND LICENSING SUMMIT 2018 ENDS ON A HIGH NOTE • • • •

Glimpses From The Event Key Highlights From The Event Who Said What At The Event Industry Stalwarts Launched Bail

06

CHHOTA BHEEM’S LIVE MUSIC SHOW IN INDIA SOON: SAMIR JAIN

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LICENSING MARKET IS MORE DRIVEN BY CONSUMERS: SHEMAROO’S SMITA MAROO

12 UNLOCKING THE LICENSING SCENARIO IN INDIA • • • • • • • • •

Bon Appetite For Sports Merchandises Cosmetics, Celebrity And More!

India - A Child’s Territory!

A Gamer’s Paradise!

Government’s Push For ‘Online Gaming’ Food, Fiesta And More!

Oh God, One More Remix!

The ‘IKEA’ Model The New Wave Of Retail In India

HOW INDIAN PATENTS OFFICES ARE EXPEDITING PACE FOR GRANTING PATENTS

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WHY GO FAKE, GET ORIGINAL! NOW BOOK CHARACTER MASCOTS!

Kids Parties or Events, book original licensed Character Mascots with ICelebrity.

info@icelebrity.com

www.icelebrity.in

YEAR ENDER

Ends

On A High Note!

The event featured who’s who from the brand and retail space exploring the driving factors and changing dynamics of the India brand licensing sector on December 5th 2018 at Mumbai’s Grand Hyatt.

Chef Harpal Singh Sokhi

Director Turban Tadka Hospitality Pvt. Ltd.

Ms. Rutika Malaviya

Founder, CEO & Editor-in-Chief Licensing Corner

Ms. Smita Maroo

Sr. VP - Shemaroo Entertainment

Mr. Manish Rajoria, Ms. Rutika Malaviya, Mr. Sanjay Dhar, Mr. Sahil Shah, Mr. Jaineel Aga

Animated Character Mascots For Chhota Bheem Friends - Mighty Raju & Chutki

96% Ms. Rutika Malaviya

Founder, CEO & Editor-in-Chief, Licensing Corner

Mr. Permendra Singh

Country Manager Licensing - Mattel/Barbie

Mr. Manish Mandhana CEO, Being Human

Mr. Krsna Mehta, Mr. Rajiv Merchant, Chef Harpal Singh Sokhi, Dr. Hitesh Bhatt, Mr. Chinmay Bhatt

Attendees At The Summit 6 LC

Out Of Which, 96% Of The Total Attendees Were Key Decision Makers

Key Highlights Animated character mascots such as Chhota Bheem and his friends - Mighty Raju and Chutki, Garfield and Sinchan enthralled the audience with their funny moves.

Intense panel discussions on retail and unconventional licensing took place with the esteemed speakers.

Chef Harpal Singh Sokhi launched his licensing programme comprising of kitchenware and home décor appliances and unveiled the logo at TIBLS. Rutika Malaviya and Vishal Sinha launched the ‘BAIL’ to foster the growth of licensing in India.

Mr. Samir Jain

Executive Director and COO Green Gold Animation Pvt. Ltd. (Chhota Bheem )

125+ Over 125+ Industry Professionals Attended The Summit

Brand Association India Licensing (BAIL) Ms. Rutika Malaviya | Mr. Vishal Sinha

Ms. Rutika Malaviya, Mr. Anil Prabhakar, Ms. Soniya Punjabi, Mr. Rajiv Popley Dr. Hitesh Bhatt

Director MarComm Retailers Association Of India

63% Turnout Ratio Increased By 63% Of Registered Participants

Animated Character Mascots For Garfield

Mr.Prasad Kapre

CEO & Director of Style Quotient Jewellery Pvt. Ltd.

Animated Character Mascots For Sinchan Mr. Nitin Kalra

Mr. Vishal Sinha

Growth Hacker & Startup Evangelist in Brand Licensing Space

Director - Animation International

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YEAR ENDER

SMITA MAROO Sr. VP Shemaroo Entertainment (On Bollywood Merchandise Initiative Yedaz) “Shemaroo has been in the entertainment industry from plus 50 years and recently we have launched Bollywood based merchandise called Yedaz. It is essential anything about Bollywood to hold a piece of it in favorite characters or dialogues our daily life either it’s your favorite movie or favorite characters, you can buy a merchandise of it and can use in your daily life.”

Who Said What?

SANJAY DHAR ACK Media President (On Foraying Into The World Of Licensing) “We are relatively new to licensing and merchandising business. We realize that there are a very strong nostalgia and feeling of love and affection from older generations as well. Keeping in mind both the generations, we are launching new initiatives.”

SAMIR JAIN Executive Director & COO Green Gold Animation (On Chhota Bheem’s Popularity) “Chhota Bheem is India’s favourite toon character.

It’s been on the air for the last 10 years. I would attribute Chhota Bheem’s popularity to the connection, storytelling, and kids’ entertainment content.”

SIDDHARTH CHURY Senior Director Global Merchandising & Licensing - NBA India (On Sports Licensing In India) “Sports licensing scenario in India is extremely phenomenal. There are lots of sports properties which are coming up at the foray and are trying licensing and merchandising. NBA cafes are coming soon in India.”

NITIN KALRA Director Animation International (On Challenges While Operating Licensing In India) “Licensing in India is still at a very nascent stage. The business has been like two decades, but most of the companies are struggling. The reason why because none of the government policies are transparent for the licensing industry. We still have a major issue with piracy in India.”

‘ing Out The Indian Brand Licensing Industry!

Licensing Corner announced the launch of ‘Brands Association for India Licensing Industry’ or BAIL at The India Brand Licensing Summit (TIBLS) 2018

The logo was unveiled

by Rutika Malaviya (CEO and Editor-in-Chief of Licensing Corner) and Vishal Sinha (Growth Hacker and Startup Evangelist in Brand Licensing Space).

BAIL is an association created by the industry stalwarts and thought leaders, who has relevant experience and understanding about the brand licensing industry in the Indian market.

“We are trying to educate the people about licensing. The association will help with the IP solutions. The industry grows together when everybody worked together, it’s a teamwork.

Licensing is still growing in India,” said Rutika Malaviya.

The mission of BAIL is to foster the growth and expansion of licensing across the globe. BAIL would act as the centre point to initiate and develop licensing in India.

BAIL’s main objective is to get all the brands/IP owners and their licensees and resellers and licensing professionals on one single platform.

The brand licensing industry in India is an emerging business vertical and remains scattered due to multiple companies operating in different businesses across media and entertainment, technology, fashion, automobile, sports, food and beverages, stationery, retail, home décor and furnishings, toys etc

The committee shall provide and develop the resources, knowledge and contacts, providing direction to the licensing industry at large, definitely avoiding any loop at individual level or capacity. The committee should ensure the interests of the members developing networking opportunities, serving as a source of education and information, establishing standards of ethical and professional conduct, and recognizing excellence and achievement in the Indian licensing industry.

The BAIL shall act as a visible body of leadership, influence, and support to the licensing industry in India.

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YEAR ENDER

Chhota Bheem’s Live Music Show In India Soon: Samir Jain With a huge fan base from big cities and small towns alike and a large portfolio, Green Gold Animation’s Chhota Bheem continues to dominate the Indian licensing and merchandising space.

Licensing Corner organised its corporate event ‘The India Brand Licensing Summit’ on December 5, which was powered by Shemaroo Entertainment in association with Green Gold Animation.

Commenting on how Chhota Bheem becomes India’s favourite animated character, Samir Jain (Executive Director and COO of Green Gold Animation) said, “Chhota Bheem is India’s favourite toon character. It’s been on the air for the last 10 years. I would attribute Chhota Bheem’s popularity to the connection, storytelling, and kids’ entertainment content.”

Musical is one of the most anticipated verticals of Green Gold Animation. The company has licensed Chhota Bheem to Global Village Dubai for outstanding Broadway shows and is expected to match the footsteps of its global counterparts such as Lion King and Beauty and the Beast.

Besides, the company is also planning to launch a live music show in India soon. “I am very glad to share that somewhere this summer, you would be able to witness a Chhota Bheem musical in Mumbai, which will match the levels of Lion King show,” Samir Jain said on the sidelines of the event.

very glad to share that “ I am somewhere this summer, you would be able to witness a Chhota Bheem merchandise musical in Mumbai, which will match the levels of Lion King show

“

Green Gold organized more than 100-plus events per year and 30-plus paid events.

In what could be termed as an interesting news, HysIS (Hyperspectral Imaging Satellite) satellite has been nicknamed as ‘Chhota Bheem’. “We reached out to ISRO and they did confirm the news. It was on Prime Minister Narendra Modi’s insistence the naming has been done. The main reason attributed behind the naming is that Chhota Bheem is ‘100 percent Made in India’ and HysIS is ‘100 percent Made in India’. It was just an icing on the cake,” Samir Jain said.

Green Gold is also planning to re-release Chhota Bheem: Kung Fu Dhamaka this summer. This would be the first Indian animated movie which would be simultaneously released in India and China.

During the entertainment segment, favourite animated character mascots such as Chhota Bheem and friends - Mighty Raju and Chutki, enthralled the audience with their funny moves.

Chhota Bheem became the first Indian cartoon character to sell merchandise worth 200 Crore.

Unseasonal nature of the sales and a large portfolio of products at different price points have been helping the steady growth of Chhota Bheem merchandise sales year-after-year.

Chhota Bheem is an Indian animated comedy adventure television series created by Rajiv Chilaka.

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YEAR ENDER

Licensing Market Is More Driven By Consumers: Shemaroo’s Smita Maroo The India Brand Licensing Summit (TIBLS) witnessed top corporate honchos giving their insights and views on the Indian licensing sector.

The rise of branded merchandise purchase from the customers online such as Amazon, Flipkart in offline key retail stores has opened up a huge market for branded merchandise purchase.

With the growth of Hollywood merchandises in the Indian market, this is the right time to have Bollywood themed merchandise to be launched.

To attract consumers, Shemaroo Entertainment Limited had launched its newest brand called “Yedaz”- Bollywood Madness. Yedaz is the official Bollywood licensing and merchandising brand of Shemaroo.

On the sidelines of the conference, Smita Maroo (Senior VP- Shemaroo Entertainment) showed the audience a presentation indicating the progress and the overall scenario of the brand. The licensing opportunities of ‘Yedaz’ extended to various product segments through characters, quirky dialogues, Bollywood themes, cult designs and memorabilia. Other segments include livelier Bollywood themed workspaces/entertainment zones / theme parks, corporate gifting opportunities through co-branded products.

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During the panel discussion on retail and unconventional licensing at TIBLS 2018, Smita explained certain flaws and difficulties in Bollywood licensing. Smita said, “The endorsement market is very well evolved but they don't understand what licensing is. All the rules of endorsement are very clear - cut on both the sides of table, the moment you say licensing and it is pertaining to the same person there is a confusion. I have been amazed at how people who have been in the industry for more than 20 years endorsing, brand tie - up etc. They find it difficult to grab the concept of licensing, but it's evolving, the consumer is becoming savvier. The market is more driven by consumer and everyone in between needs to listen and observe consumer and change and tweak the model and style of working accordingly.”

“Our family name is Maroo. My father-in-law started the business and the ‘She’ part was one of our partners earlier,” Smita answered one attendee who asked about the story behind naming the brand as Shemaroo.

Commenting on the recently launched Bollywood initiative, Smita said, “Shemaroo had been in the entertainment industry from 50-plus years and we have launched Bollywood based merchandise initiative recently. It is essential to hold a piece of Bollywood via your favorite characters or dialogues in our daily lives. Either it's your favorite movie or favorite characters, you can buy a merchandise of it and can use in your daily life.”

The panel discussion was attended by with Vishal Sinha (Industry Veteran), Jaineel Aga (CEO of Planet Superheroes) and Dhimant Bakshi (CEO of Adlabs Imagica).

Yedaz is an e-commerce platform which showcases cool and quirky Bollywood - based merchandise in more than 15 product categories. The brand has a presence in different categories such as T-shirts, coffee mugs, coasters, mobile covers, cushions and other exciting product line - ups.

Yedaz was founded in the year 2018 as an idea for creating a range of Bollywood themed merchandise solely for the love of being filmy. Yedaz is a brand of Shemaroo, which is known for its high standards of quality amongst the customers from the last 55-years. Shemaroo is currently holding films license and merchandise rights of more than 500 plus films which will give customers a varied range of products to choose from.

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YEAR ENDER

UNLOCKING THE LICENSING SCENARIO IN INDIA

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Licensing Outlook

5

Oh Go d, O ne M ore R emix!

The brand licensing industry, now in its "nascent stage" in India, is set to grow manifold in the foreseeable future with rising brand consciousness among consumers and higher penetration of modern retail and e-commerce.

Brand licensing is basically renting the brand to an industry manufacturer or retailer. According to industry estimates, close to 95 per cent of the retail in India is still dominated by traditional and unorganized retailers, but organised retail, which is growing exponentially, is estimated to reach USD 220 Billion by 2023.

The retail and related revenue generated globally by the trademark licensing business increased to USD 271.6 Billion in 2017, according to the Annual Global Licensing Industry Survey by the International Licensing Industry Merchandisers’ Association (LIMA).

11.4 %

Toys

Character and Entertainment, being the top licensing type, garnered 44.7% share of the market, accounting for USD 121.5 Billion; followed by Corporate Trademarks with USD 55.77 Billion in retail sales for a 20.5% share of the total.

l de Mo ’ A ‘IKE The

Fashion Accessories

6 13.3 %

15 %

Apparel

20.5 %

Corporate Trademarks

44.7 %

Character & Entertainment

7

Th eN ew Wa ve O f Re tail In India

Annual Global Licensing Survey, LIMA

Apparel led all product categories with USD 40.67 Billion in revenue, which accounts for 15% of total global licensed retail sales, followed by Toys at USD 36.12 Billion with 13.3% share, and Fashion Accessories at USD 31.04 Billion with 11.4% share.

Let’s Take A Look At How The Licensing Industry In India Have Progressed Over The Year 2018.

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India - A Worship Ground For

Sports Merchandises!

With advancements in technology, licensing and merchandising in India are also coming of age. Sports brands in general and soccer brands in particular are witnessing vast growth, with many international brands including FIFA, Real Madrid, The Smiley Company and the NBA generating business, retail and consumer interest in India.

India has always been a fan market for sports and sportsmen, which often drives media attention. However, India’s penchant towards sports, can be witnessed in terms of sales of sports licensed merchandise.

With India’s appetite and love for sports, the licensing space has changed dynamically over the years.

The FIFA World Cup 2018, hosted by Russia, is one of the biggest global events this year. Despite India not featuring in the World Cup, there has been a jump in Indians travelling to Russia, as well as in the sales of jerseys, footballs and other game - related merchandise.

Travel portal MakeMyTrip recorded a 400% jump in bookings to Russia during June-July compared with the same months last year.

E-commerce players such as Snapdeal and Amazon have set up special football stores for the game enthusiasts. Snapdeal said it has seen a jump in sales of bean bags, recliners and home theatre systems.

The top five highest selling jerseys were Brazil, Portugal, Argentina, Spain and France. The football event proved to be a revenue generator for the sports business with football contribution to business increasing by 40% over April - June.

Even in the offline space, Alcis Sports that won the rights for 2018 FIFA World Cup Russia-licenced apparel merchandise in India, Nepal, Sri Lanka and Pakistan, had seen a 50% spike in sales of football merchandise.

One of the latest home-grown sports brands to enter the licensing market is the Indian Premier League (IPL). After 10 years, the IPL has experienced a spike in its brand value of $5.3 Billion according to global valuation and corporate finance adviser Duff & Phelps.

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Celebrity, Cosmetics And More!

Gone are those days, when celebrity licensing used to be a concept of the west. have witnessed more celebrities joining the licensing bandwagon. Be it Salman Khan’s theatre chain or Jacqueline Fernandez’s new Thai restaurant, celebrities never fail to represent the image and promise of their brands.

During the last five years, celebrity licensing has also increased, with Indian film stars and cricket players developing their own licensed merchandise including Salman Khan’s Being Human, Hrithik Roshan’s HRX, Shahid Kapoor’s SKULT, Deepika Padukone’s All About You, Anushka Sharma’s Nush, Sonam Kapoor’s Rheson and Virat Kohli’s WROGN among others.

Not only this, to counter global brands such as Disney and Marvel and to popularize Indian pop-culture, Anushka Sharma had sought design inspiration from Tinkle Comic’s Suppandi for the spring-summer collection line of her label.

The latest to join the bandwagon is the glamour queen Kareena Kapoor Khan, who launched her own first ever cosmetic collection in association with Lakme Absolut, available exclusively on Nykaa.

Also, foraying into the global space, Sunny Leone launched her cosmetic line ‘Starstruck’ in Dubai.

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YEAR ENDER Following the footsteps of the foreign counterparts, ace designers Sabyasachi Mukherjee and Manish Malhotra forayed into the world of cosmetics. Sabyasachi Mukherjee had partnered with beauty giant L’Oreal Paris for the 21 piece collection including lipsticks, mascara and eyeliner.

Titled as ‘Manish Malhotra Haute Couture Makeup’, Manish had collaborated with premium European make-up brand MyGlamm to launch the collection comprising of eyeshadow palettes, nail lacquer etc.

On his birthday on December 27, as a special gift, Salman Khan gift his original lucky Turquoise bracelet, as a part of the Being Human Jewellery series.

When it comes to marketing and promotions, King Khan is here to slay! Ahead of his film ‘Zero’ release, Shah Rukh Khan launched ‘Bauua Ki Dukaan’ comprises of merchandises and products related to its upcoming movie ‘Zero’ including mugs, headphones, mobile covers, badges, t-shirts, personalized autograph posters and many more.

Recently, ace designer Masaba Gupta had acquired the official license to create apparel, home products, and jewellery inspired by the cast of the epic show ‘Game of Thrones’ for India, the UK, and Indonesia, that is slated to release during the final season of the show in 2019. Do we need to say more?

3 Territory!

India - A Child’s

India has had some success stories with home-grown intellectual property, including animated TV brand Chhota Bheem, which enjoys a hugely successful licensing programme.

Green Gold Animation’s Chhota Bheem becomes the first Indian cartoon character to sell merchandise worth 200 Crore. Unseasonal nature of the sales across big cities and small towns alike and a large portfolio of products at different price points have been helping the steady growth of Chhota Bheem merchandise sales year-after-year.

Besides, Rajiv Chilaka’s maiden child had also forayed into various segmentsdigital space, Netflix, movies, theme park and live-action musical show.

The much-awaited ‘Avengers: Infinity War’, which hit the theatres on April 27, witnessed massive success. Thanos’ journey to reclaim the Infinity Stones is almost upon the customers and cashing in on the hype are companies releasing exclusive Avengers-themed merchandises in India. From notebooks to mobile covers, companies such as Renault, Only, Acer were entered into various partnerships to provide fans and followers with a memorable experience.

The other area with the greatest merchandising potential in India is Bollywood. Rather than treating it as a marketing tool, Indian films such as Zero, Raees, Baahubali franchise are launching merchandising campaigns as a revenue stream.

Film merchandising has been picking up the pace in India with changing cinema viewing habits, and there is a growth in terms of strategic alliances between filmmakers and merchandising partners.

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To attract more customers, Shemaroo Entertainment Limited had partnered with Vigo Video and TikTok to promote the company’s Bollywood merchandise brand – Yedaz.

Traditionally, India has been a children’s entertainment licensing territory. However, as a testimony to the growing entertainment industry and increase in the market for young adults, Marvel, Disney and Barbie profiting from a growing popularity in licensed products across various segments such as apparel, footwear, phone and computer accessories, stationery, gifts and novelties.

When it comes to reshaping the Indian licensing industry, Disney always remain the front runner.

After the merger with the 21st Century Fox, the Walt Disney Company reported quarterly earnings for its third fiscal quarter ended June 30. Disney has seen profits boost 23 percent in its most recent quarterly reports to a net income of USD 2.9 Billion. Consumer products and interactive media revenues decreased 8 percent to USD 1.0 Billion and segments operating income decreased 10 percent to USD 324 Million.

A Gamer’s

Paradise!

According to Frost & Sullivan report, the Indian gaming market, estimated at USD 338.4 Million in revenue in 2017, is expected to grow threefold in four years.

The Indian gaming market is all set to increase to USD 1.1 Billion in 2021, almost entirely driven by increase in mobile gaming revenue.

Anil Ambani led - Reliance Entertainment venture Zapak had launched ‘Little Singham’ mobile game, which is inspired by the Little Singham TV Series on Discovery Kids produced by Rohit Shetty Pictures and Reliance Animation. The game had already garnered over 3 Million downloads and has clocked close to 50 Million minutes and 67 Million runs.

To capture the Indian gaming sector, Chinese gaming giant Yoozoo Games (previously Youzu Interactive) has inked a three-year collaboration with Sunny Leone and Mumbai-based game development studio Gamiana for a mobile game.

Viaan Industries, a popular licensing, entertainment, and gaming company promoted by leading entrepreneur, Raj Kundra, and Bollywood actress Shilpa Shetty Kundra, had always been the frontrunner when it comes to new game launches in India. Recently, it launched various mobile games such as Adventures of Ali Baba, VOW etc.

Besides, Yoozoo also unveiled officially licensed ‘Game of Thrones’ browser game. Now, isn’t this amazing?

Government’s Push For

‘Online Gaming’

Senior Congress Leader Shashi Tharoor has moved a private bill to regulate online gaming in India. The bill was unveiled in Lok Sabha for regulatory measures for the online gaming industry. An elected Lower House member from Trivandrum, Shashi Tharoor is eyeing on online games after the recent entry of big key players in the market. The bill, if passed, will regulate, PUBG, PUBG-M, CSGO, DotA 2 and others which are considered as esports.

Tharoor stressed the necessity of the bill by highlighting high growth of the gaming industry looking a few years back.

According to Tharoor, the bill will reduce the flow of black money and regulate a flow of finances in the industry.

The bill will also enable the government to oversee and ensure the players are in accordance with the Constitution and the Regulations at place.

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YEAR ENDER

Food, Fiesta And More!

Home of cracking Belgian chocolate and velvety smooth vanilla ice cream - Magnum always surprised us when it comes to food licensing.

Have you ever wondered what happens when food meets fashion? Ace designer Manish Malhotra designed exclusive Magnum-inspired clutch.

Inspired by his recent venture with Magnum to the 71st Cannes Film Festival, Malhotra developed three purses for actresses Vani Kapoor, Aditi Rao Hydari, and Pooja Hegde.

However, this is not the first time, earlier, jewellery designer Farah Khan had collaborated with the ice-cream brand and launched exclusive jewellery and delectable pieces line ‘MagnumXFarahKhan Collection’.

The world’s leading manufacturer of chocolate and confectionery products, Kinder Joy had partnered with KidZania, a Global Edutainment Theme Park to launch a Kinder Joy Treat Factory for children at KidZania, Mumbai.

Not just this, Indian confectionary producer Bikaji released the ‘Special Edition Bikaji Zero Bhujia Pack’ in collaboration with Shah Rukh Khan and Katrina Kaif.

Nestlé India also launched NESPLUS - a range of nutritious and delicious breakfast cereals for the entire family.

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What’s more! Perfetti Van Melle India had also launched its global confectionery brand Chupa Chups in India to target the growing lollipop market in the country

Oh God, One More

Remix!

And yet, a short history of retooled classics shows that they are here to stay. Not just the diminishing importance of the soundtrack in the mainstream film story, the explosion of remixes in Hindi movies have clear commercial considerations.

Numbers suggest that 2017 was the biggest year for this trend, with staggering 30 re-worked versions of classic tracks. In comparison, 2018 had fewer remixes, although the possible success of Simmba’s ‘Aankh Marey’ might turn the clock back again. In 2017, the remix boom exploded. A song of any genre from any decade and in any language - anything was game for music companies and film producers.

Piracy is also still a rampant issue in the country, with over half of internet users accessing unlicensed services on a monthly basis. However, this doesn’t mean that Indian music and media are cheap or undesirable. Apple, Amazon and other big-tech behemoths have reportedly been in talks to acquire the catalog of Indian movie producer Eros, which is potentially valued at USD 1 Billion.

In the US, while music revenue from sync licensing is steadily growing, it’s still considered an “emerging” part of the business in terms of volume. India paints literally the opposite picture, the local music industry is essentially synonymous with Bollywood, which releases over 1,000 movies annually, and soundtracks account for nearly 80 percent of the country’s revenue.

With the increase in the number of independent artists, people have started understanding the concept of music licensing. Music licensing is intended to ensure that the owners of copyrights on musical works are compensated for certain uses of their work.

Music label Sony Music had launched its global artist royalty portal - Artist Portal in India to empower artists by giving them easy access to royalty statements online.

Artist Portal is currently live in 27 countries such as the US, Australia, and China, with over 250 artists and managers. The platform also gives a break up of digital, physical, synch licensing and other revenues.

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The ‘IKEA’ Model

After 12 long years of planning and 6 years after it made an announcement, Ikea had finally opened its first store in India on August 9 in Hyderabad.

The Hyderabad store is spread over 13 acres with a floor size of 4 Lakh Sq feet in the heart of HITEC City.

The store has 7,500 products including fully furnished rooms. The store will house a 1,000-seater restaurant which will offer Indian as well as Swedish cuisine at affordable prices. The store has 950 workers and expects close to 7 Million visitors every year.

After Hyderabad, Ikea plans to open stores in Mumbai in 2019 followed by Bengaluru and Gurugram. Ikea also looking to expand to cities such as Ahmedabad, Surat, Pune, Chennai, and Kolkata. By 2025, Ikea is looking to have a presence in 25 cities in India. Ikea had invested about 1,000 Crores in the Hyderabad store.

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The New Wave Of

Retail

In India

The last two years also saw a massive increase in digital property licensing opportunities. With people becoming brand conscious, licensing in India to become a booming business with the increase in retail segment.

For licensing to succeed in any market, organised retail is essential. E-commerce has managed to address the issue to some extent, but licensing is most beneficial with a successful retail strategy.

Walmart announced its high-profile acquisition of Flipkart for USD 16 Billion for a valuation of over USD 20 Billion.

The Bentonville company has acquired 77% of the Bengaluru-based company.

Sachin Bansal, who had co-founded Flipkart with Binny Bansal in 2007, exited the company after the deal. Japan’s SoftBank, an investor also exited the company by selling its entire 20 per cent stake in Flipkart.

Walmart’s investment includes USD 2 Billion of new equity funding, which will help Flipkart accelerate growth in the future.

India’s first Billion Dollar e-commerce company, Flipkart, sells 8 Million products across 80-plus categories. It has 100 Million registered users.

Not only this, Swiss food giant Nestle announced that it will pay USD 7.15 Starbucks products around the world, outside of the company’s coffee shops.

Billion in cash for the rights to market

As part of this transaction, Starbucks will receive an up-front cash payment of USD generated annual sales of USD 2 Billion.

7.15 Billion for a business which

With India adopting new techniques and mechanisms and consumers becoming more ‘brand’ conscious, the future of licensing sector is surely optimistic!

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YEAR ENDER

Market In 2018 & Outlook In 2019 AMIT AGGRAWAL Co- Founder & Director, Effectual Servicesin 2019

Intellectual Property is fast becoming a mainstream phenomenon in India. Filing of all types of IP Patents, Designs and Trademarks is on the rise. According to annual report for year 2017 by the Indian Patent Office, which is responsible for granting the IP rights, there were as many as 3,50,467 filings across all types of Intellectual Property classes. This is a 42% jump compared to 2,46,251 filings five years back. Notably, the patent office also seems to have responded positively by significantly improving the disposal rate (granting / registering or otherwise disposing the application).

The reason for such a high rise in filing is attributed to multiple reasons - one of the key reasons seems to be the increase in domestic filings. A quick look on patent filing statistics across years indicates that filing from international companies have remained, more or less, consistent over the years, but the domestic filings in past year have shown a 30% increase compared to five years back. A lot of applicants such as Indian Institute Technologies, Amity University, etc. seem to be actively pursuing patent protection for the research they do.

The Indian Patent Office has not published the Annual report for year 2018 till the time of writing this article, but there is no doubt that the filings will show an increasing trend this year as well - Thanks, in part, to various initiatives taken by Government of India to encourage innovation and entrepreneurship such as Make in India, Start-Ups Intellectual Property Protection (SIPP), and National Intellectual Property Rights (IPR) Policy.

One of the main objective of protecting Intellectual Property is, of course, protection of your Idea and/or brand. Statistics show that the Intellectual Property owners are also serious in enforcing their Intellectual Property rights, and are also winning in Indian courts. A leading case for which a decision was awarded this year was between Philips (Patent owner) and Bhagirathi Electronics and Rajesh Bansal (Defendants). The suit was filed back in 2009 but was decided in July 2018, in favor of Phillips, the owner of the Indian patent 184753, which was involved in the suit. The suit involved a question of whether the Defendants infringed the patent in question. The Honorable Delhi High Court not only decided that a royalty should be paid to the patent owner (Philips), but also awarded punitive damages of INR 5 lakhs against the defendants. In addition, the court also directed the defendants to pay to Phillips the actual costs incurred in the litigation.

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“A Small Company, or An Individual Inventor May Not Have The Necessary Resources To Reach The Stage Of Decision, Thereby, Rendering The IP Protection Ineffective”

Based on our research, as many as 500 suits may be filed in India each year relating to Intellectual Property, more specifically, on counterfeiting or piracy-related issues. Many of these cases are based on Trademarks, however, many are based on Patents and Industrial Designs as well. Many of them are settled outside the courts by the parties. However, as we know from the Phillips case, not all of them are settled out of courts, and some of them do go to the Trial and then eventually to the Decision phase. Our research concluded that most of the suits are decided in favor of the IP owners within courts or outside settlements. With patent owners becoming more and more active in enforcing their patent, this phenomenon is bound to witness growth in coming years as well.

This being said, there is no denying the fact that IP Litigation system also needs some overhaul. Years of trial, such as in the Phillips case referred above, put an unnecessary pressure on both the parties, and only larger companies stand a good chance to see the suit through to the decision phase. A small company, or an individual inventor may not have the necessary resources to reach the stage of decision, thereby, rendering the IP protection ineffective. The time involved in the process is one of the issues, skill may be another issue at play when it comes to patents. The patents, for most part, may incorporate complex technology, and it might be difficult for a Lawyer to represent the case, unless they have a relevant technology background.

It remains to be seen how things unfold in the coming years, but with the Intellectual Property filing and the Intellectual Property litigation on the rise, it might be worthwhile to come up with specialized forums for deciding Intellectual Property related suits swiftly as a policy decision. Dedicated Intellectual Property courts or tribunals having right technology and IP expertise may help increase the pace at which the IP related suits are currently being decided.

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