VI. Combined "Concept" and "Property" License By Carol Rehtmeyer

It is possible to combine a "Concept" with a "Property" license. Typically the combination would be a "feature" or technology combined with a noted brand, mark or character. Some examples of combination Concept and Property licensing include "Tickle Me Elmo", "Sing 'n Snore Ernie", "Star Wars Spin Pop", "Barnie Song Magic Banjo", or the "ChuckE.Cheese Pizza Factory. A combination of the right idea with the right license can make a very strong marketing package. Toy manufacturers often seek product concepts exclusively to apply to Property licenses that they hold the rights. Typically, in a combined license situation, toy manufacturers will demand a substantially reduced royalty (split- royalty) consideration from the inventor. Combined royalties are considered too substantial to enable the manufacturer the ability to maintain attractive retail price-points. Inventors or secondary Property holders are often willing to accept a reduced royalty in return for the exposure and sales volume the added Property license offers. The wrong marriage of Concept and Property, however, can be detrimental as the combination of the two are perceived as the "product" by the consumer.