Developing Branded Products – A toolkit for Agencies

Simon Morrissey

Partner

simon.morrissey@lewissilkin.com

Tel: 020 7074 8221

@morrisseyls

Overview

• Products -v- Campaigns

• The drivers for change?

• Examples...

• Implementation

Is Branded Product Development New?

Is Branded Product Development New?

Products -v- Campaigns

3 key characteristics of a Product:

• Not temporary

• Can be a brand in itself or can support many brands

• Demands a different remuneration model from the rate card

Drivers for change?

• Convergence of Technology and Marketing

• Industry disruption – the need for consumer engagement

• New focus on Client/Agency partnering

• Network agencies creating products for the benefit of the whole network and their clients

Examples

3 routes to market:

•In-house

•3rd Party partnering

•Client/Agency Partnering

In-House – Code’s Adzu

In House – Rockfish’s YouEarnedIt

In House – Made By Many’s Hackaball

• https://www.youtube.com/watch?v=H_5FcS2bzOg

3rd Party Partnering – Unilever’s Foundry

Client/Agency Partnering – R/GA & Nike

https://player.vimeo.com/video/64758806

Implementation - 3rd Party Partnering

Partner resources:

•Existing supply chain e.g. manufacturers, IT suppliers

•Brand owners/market owners/anchor customer

•Hackathons

•Crowdsourcing

•Funding

Implementation – 3rd Party Partnering

Key legal/commercial issues for initial engagement:

• Confidentiality

• Ownership of IP

• Remuneration

• Funding

3rd Party Partnering – Confidentiality

• Common Law

• Contract – Formal or Informal?

3rd Party Partnering – Types of IP?

• Copyright

• Trademarks

• Design Rights

• Patents

3rd Party Partnering – Who owns the IP?

• Joint ownership?

• Special purpose vehicle?

• Assignment?

• Cross licensing?

3rd Party Partnering - Remuneration

• Time & Materials

• Value Based

• Fixed Cost/Annual Cost

• Revenue Sharing

• Equity – e.g. Kickstarter

• Acquisition

Implementation – Client/Agency Partnering

What about the Client/Agency Agreement?

•Separate business unit?

Over to you...

• Good?

• Bad?

• Indifferent?

Thank you