艺术授权——艺术赋能产业发展的新动能及其风险管控
作者:奚敏洁 时间:2020-01-16
This article was firstly published in the Licensing International Special Edition in January 2020.
In the last thirty years, China has grown into the Top 3 of the Worlds Largest Art Market, in 2011, China even took the largest share of the World Art Market, which represented 30% of the global art business sales revenue. Since then, China has been playing a stable role of being the No. 2 or No. 3 in the market. According to The Art Basel and UBS Global Art Market Report 2019, the global art business in 2018 reached US$67.4billion, China was the No. 3 in the market, representing 19% of the global art business sales revenue. Besides, according to the TEFAF Art Market Report: The Chinese Art Market (2019), China has more than 20 art fairs a year and over 4000 galleries now.
In China, people's passion and love for art are much more beyond art collection, instead, people are more interested in artistic lifestyle in which art are comprised and embraced in dining, drinking, playing,clothing, living, travelling, and almost in everything, in one word -lifestyle. Of all people who enjoy art as lifestyle, including these who crazily fought for the KAWS x Uniqlo T-shirts, these who were born in the 1990s- who love wearing the "Lu Duan" sweater jointly developed by Li Ning and the Palace Museum, or you and I who might fly to Guangzhou solely for the purpose of spending some time in Van Gogh SENSES Bistroin Guangzhou K11, to enjoy eating, drinking and playing, art inspires us all and makes us happy,thanks to the joy from art, art licensing and the industries it empowers. In your morning milk time, you start with a new Yili collection milk called"Satine Jersey British Treasure", per license from the British Museum, when you walk into the meeting room in office, a stunning new PC catches your sight, it is Lenovo's "AIO AIO 520X Max", which Lenovo newly developed per cooperation with the Palace Museum, presented as a co-work of high technology amd unique Chinese cultural heritage. You have a business trip to take, so you quickly pack with your Samsonite Keith Haring and run for airport, when you get there, an AR show is on in Terminal 1 hall, with Monet's classic paintings... As you may see, art is with you, empowered by art licensing...
Coincidentally, in art licensing, China (Hong Kong SAR included) has also grown into Top 3 in the world. According to the Annual Global Licensing Industry Survey 2019 Report, the United States, United Kingdom and China are Top 3 in the world in retail sales of licensed merchandise in art licensing, which represent 61%, 8.5% and 7.9% of the global total sales. In 2018, the global retail sales of licensed merchandise grew to US$280.3 billion, although art licensing constituted only 1% of that, it has been the category grew the fastest for consecutive recent years, with a YOY increase at 9.5% for Year 2017 and 2018, and a YOY increase at 39.4% for Year 2016 and 2017, which was much much higher than any of the other categories.

So, what is the magic power of art licensing, why it can empower industries? Lets do an analysis step by step

What is art licensing? What rights are licensed under art licensing?

Art Licensing//使

KawsKeith Haring西Frida Kahlo

According to different sources of the rights, art licensing may also be divided into artist art licensing and museum art licensing. If the artists are famous enough, who might bring tremendous commercial value such as Kaws, Keith Haring from the United States, Frida Kahlo from Mexico, Murakami Takashi from Japan or Mr. Guanzhong Wu of China, the art licensing of whom are all taken care of by professional art licensing institutions at the moment. And different from that, museum art licensing are mainly operated based on the driving force of the branding and reputations of the museums. In China,there are numerous success stories of museum licensing, such as Palace Museum and its well-known heritage lipsticks, and Taibei National Palace Museums famous stationary products. British Museum was another good example, which grew to be the No.1 of daily sales in the same industry, within two weeks since launch of its flag store on Tmall, and in 2018, the total retail sales of its licensed merchandise grew to be more than US$30 million.

What are industries that can be empowered by art?

广location - based event In theory, there is no industry that art cannot empower. Taking the Annual Global Licensing Industry Survey 2019 Report as an example, following were listed as products/services/industries that are extensively and deeply empowered by art licensing: fashion accessories,apparel, footwear, CE, food and beverage, health and beauty, home decor,housewares, infant, paper products, publishing, sports, toys, gifts,promotions, games, auto parts and the etc. And of all, fashion accessories,gifts and home decor represented the Top 3 in respect of sales, respectively at the percentage of 17.3%, 15.2% and 13.2%. In China, of various art licensing forms and modules, location based events is one of the most popular types, and Shanghai K11 was a pioneer and has been very successful in this field.

 

Museum licensing has been continuously growing fast.According to data from Ali, the sales revenue for Ali in 2019 till the end of August were already 3 times of such in 2017, the industries benefited most from the museum licensing include: beauty and skincare, culture and entertainment,CE, home decor and housewares, food and beverage, infant, maternity and the etc., among which, the YOY increase for beauty and skincare reached 2329%, for CE reached 1144% and for food and beverage reached 260%.

What are the real examples of successful art licensing?

1. Perfect DiaryBeauty in Art Licensing
201911MAC
2. Mobile phones in Art Licensing

2018MIX 2SV6

 

Take Yilis "Satine Jersey British Treasure milk as an example, the milk was introduced as 100% from Jersey, and the packaging thus was created based on British Museums selected English paintings.

It is important to involve legal to empower industries with art and art licensing,throughout the whole process of art IP creation, IP verification, IP licensing,licensing management and IP enforcement.

First of all, art IP creation is the source and base for art licensing. Whether it is from the artists original copyright, from the new copyright created based on the art licensing, relating to licensed use of the trademark(s) of the artist(s), museums or foundations, or the co-branded or designed new trademarks, risks shall be clearly identified and carefully management. In practice, the most critical risks usu. exist in the ambiguity of IP ownership,e.g., a vague commitment of making contribution to a company via using IP,right to create or artwork, a commitment based on Work for Hire however without a legal employment relationship, and description of general relationships such as joint development, further creation, commissioned work and the etc.

Secondly,IP verification is condition precedent to ensure a licensing can be successful,and it shall be supported by authentic and valid written documents. It is advisable to engage an independent third party for DD and set satisfactory result as condition precedent for cooperation and payment. The verification shall be carried out with clearly-defined scope, period, categories,restrictions, and the copyright protection period of each jurisdictions.

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Besides,it is also advisable to pay special attention to regulatory compliance during licensing, such as strict industry regulatory compliance in respect of beauty,skincare, food and beverage, as well as crisis management, customs and import/export compliance, tax and customs duty risks.

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<p style="max-width: 100%;min-height: 1em;line-height: 1.5em;font-family: -apple-system-font, BlinkMacSystemFont, " helvetica="" neue",="" "pingfang="" sc",="" "hiragino="" sans="" gb",="" "microsoft="" yahei="" ui",="" yahei",="" arial,="" sans-serif;font-size:="" 16px;letter-spacing:="" 0.544px;white-space:="" normal;background-color:="" rgb(255,="" 255,="" 255);text-align:="" justify;margin:="" 15px="" 8px;box-sizing:="" border-box="" !important;overflow-wrap:="" break-word="" !important;"=""> To sum up, art licensing is a power to empower commercial operations, so as to empower industries, which may not only enhance value of the artworks property values, but also to promote and develop their intangible values, as well as the brands value of the artist(s), museum(s), foundation(s). If appropriately utilized, it has strong power to empower industries with driving force, for sustainability.

 

 

 

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