Trademarks and Licensing collaborates daily with all units of the Integrated Communications sector. Some duties include:

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1 Report Submission - ID: 17Admin210 Author(s): Erika Palmer Unit of Analysis ID Number: 34 Sector: Integrated Communications Division : Integrated Communications Unit for Assessment: Collegiate Licensing State the mission, objectives, and primary functions of this unit. : Trademarks and Licensing at UM plays a critical role in University branding and messaging from enforcing brand guidelines and establishing brand consistency to building brand recognition around the institutional mission and philosophy. Trademarks and Licensing provides the University with a controlled, positive messaging platform to create an emotional connection with all audiences. These components are critical to the University s branding mission, as is the revenue generated by royalties from the sale of licensed merchandise, which provides a significant revenue stream. The University uses royalties to support many internal programs, as well as marketing and outreach efforts. Trademarks and Licensing partners with the industry-leading licensing agency IMG College Licensing, which provides resources in brand protection, brand management and brand development, while ensuring quality merchandise is produced in an ethical environment and in accordance with the University code of conduct. Objectives: Enforce University brand guidelines and consistency Manage partnership with UM s licensing agency, IMG College Licensing o Manage UM Western s licensing program through agreement with IMG College Licensing Generate revenue for UM through the sale of licensed merchandise Build strategic partnerships with licensed vendors and retailers to increase sales Collaborate with Legal Counsel to manage University trademark portfolio Enforce sanctions where infringement occurs Work closely with Athletics and their partners to capitalize and build brand value Trademarks and Licensing collaborates daily with all units of the Integrated Communications sector. Some duties include: Institutional media buys Campus Marketing/Signage Identify/Initiate creative campus and community marketing partnerships Community outreach through marketing, donation partnerships, sponsorships

2 Identify the primary users of the unit.: The trademarks and licensing program provides a platform for the University of Montana to promote its brand and reach all of its audiences that have any interest and affinity in UM, by providing positive and consistent brand messaging applied on merchandise for purchase. These audiences include but are not limited to: Internal o Students o Employees External o Alumni o Fans o Future students o Donors o Community members and businesses o Philanthropic organizations/charities o Licensed vendor businesses o Brick-and-mortar and online retailers Submit Organizational Chart : 17Admin210_SubmitOrganizationalChart_ pdf Complete the FTE Detail Excel spreadsheet provided in the link below.: 17Admin210_CompletetheFTEDetailExcelspreadsheetprovidedinthelinkbelow_ pdf Using the space below, address any issues with your FTE Detail Sheet.: The revenue and expenses for Unit 34, Collegiate Licensing, were originally included in Unit 36, VP for Integrated Communications FTE Detail Sheet. The dollars specifically for Collegiate Licensing were extracted and entered in to the attached spreadsheet. Finance: Budget and Financial Planning,Purchasing/Procurement,Accounts Payable Human Resources: Employee Training Communications: Marketing and Communications,Website Maintenance/Development,Social Media,Event Planning Development: Alumni Relations Student Services: Admissions/recruitment Criteria 1. - Bullet 1.: UM Trademarks and Licensing delivers licensed products through partnerships with vendors and retailers in the local community and across the world. The program works daily to enhance the UM brand. Leadership UM Trademarks and Licensing:

3 Has a high ROI. Is among top 50 institutions in sales of collegiate licensed product. Ranks No. 1 for licensed product sales among peer institutions. Has a dedicated, loyal fan following, with strong interest in displaying their affinity to our brand. Is recognized by IMG College Licensing as an example of potential success for peer institutions. Engagement UM Trademarks and Licensing: Works with entities campus wide to develop and implement a consistent brand Develops opportunities for brand promotion through various outreach channels Strategizes with Athletics and corporate partners to maximize promotion of licensed product and brand affiliation Financially supports internal and external programs and organizations Manages social media platforms to engage fans and introduce products, encourage brand affinity, etc. Sustainability UM s Trademarks and Licensing: Labor Rights Association o UM partners with Worker s Rights Consortium, an independent labor rights monitoring organization, and requires all licensed vendors adhere to the strict labor codes in production of UM branded product. o This partnership provides a credit to UM s Sustainability Office for their STARS Campus Sustainability Assessments. Standard Sustainability Efforts o Limited use of material product and increased use of electronic communication. o Moved to electronic documentation and artwork processes. Diversity We provide a vast range of products and continuously expand our offerings to a diverse consumer base. Criteria 1. - Bullet 2.: UM Trademarks and Licensing generates a significant revenue stream to UM at a very low cost. Generated revenue is shared with many critical campus departments, as well as internal and external partners, many of which depend on our financial contribution for their operational budgets. Reducing resources to support this department would deny the University the opportunity to grow partnerships, deplete the return in revenue from sales of licensed product, severe the ability to share revenue, and damage the University s control of brand development, brand reputation and protection of trademarks. Criteria 2. - Bullet 1.: Over the last five years, the program has transitioned from part-time trademarks and licensing position that formerly served as assistant to a Vice President to a full-time position in Trademarks and Licensing, with additional collaborative marketing and outreach duties under the umbrella of Integrated Communications. This transition was critical due to the growth in collegiate licensing and internal and external demands on the unit. The transition to a full-time position has realized

4 an overall increase in revenues over 5 years, as well as the ability to create stronger financial contributions and brand consistency with campus departments, and afforded both a consistent revenue stream for some programs, as well as one-time contributions that otherwise would not have been funded. includes: Increased internal demand for Trademarks and Licensing services in the past five years Growth in financial funding requests from internal UM programs due to recent budget cuts Participation in institutional rebranding effort in 2012 Educating departments about the importance of using licensed vendors for any internal product bearing a University brand Collaboration with departments to build their own revenue sources through sales of branded product featuring their brands Please see criteria #4 breakdown of financial assistance allocated out from royalty revenues, and criteria #4, bullet #1 for examples of allocated funds. Criteria 2. - Bullet 2.: UM Trademarks and Licensing has overall shown an increase in demand for time investment due to the internal demand for revenue. With the need to grow revenues comes activity necessary to build out product categories, establish and maintain vendor and retail partnerships, increased artwork submissions and infringement enforcement. The following numbers represent the increase in operational day-to-day activities needed to manage those programs effectively: Units sold: o ,074 o ,659 Artwork submissions o o Number of product categories o o Retailer partners o o Demand for enforcement services (these numbers are across the consortium of IMG CL Institutions) o 2007: Less than 1,000 takedowns o 2013: 3,600 takedowns o 2015: 24,000 takedowns o 2017: 30,000 takedowns Requests for financial contributions and branded product donations from external audiences also continue to increase. Trademarks and Licensing has teamed with University Relations to respond to requests for

5 funding and product donations. We are currently building a request platform that will effectively measure the financial value of donations the University makes. We also have turned our focus to providing hard goods in effort to increase brand recognition. The top requests received include: K-12 education requests from across the nation for branded product and materials to give to students, to educate youth on the importance of education and highlight UM as a place of higher ed. Charitable/philanthropic private organizations requesting funding or donations for auctions/raffles. Criteria 3. - Bullet 1.: As the primary users of our unit are so widely variable, our program measures success in several ways, including meeting those needs through the range of products offered, growth in the number of partnerships with licensed vendors and retailers and satisfaction of our consumers purchasing our products, as well as revenues and expenses in comparison with our competing institutions. The following industry benchmarks were compiled and reported in the Benchmark Survey by the International Collegiate Licensing Association. The results show that in comparing average data amongst peer institutions, categorized as Div I FCS, UM generates well-above industry average for royalty generation, yet UM remains lean in operational program costs and falls below averages for operational costs International Collegiate Licensing Association (ICLA) Survey 134 participants 99 institutions and 35 licensees Average listed below are the averages reported for Div I FCS institutions category, in which UM resides for this survey Standard Royalty Rate o Average 11.27%* o UM 14% Standards and 12% Local *UM increased the Standard licensee rate from 12 to 14% in April 2017, but left Local licensee rate at 12%. 20% of schools reported a plan to increase their royalty rate during 2017 Gross Royalties o Average - $337,176 o UM - $550,273 Number of FTE Employees for Licensing Program o Average for Peer Institutions (Div I, FCS) FTE o UM 1 FTE Travel Budget o Average - $8,276

6 o UM - $5,000 Director Salary o Average - $85,222 o UM - $72,018 Criteria 3. - Bullet 2.: Given the demands required by internal campus and external partnerships for brand development, the Director participates in many various campus committees, as well as participates in a variety of professional development trainings in-person and through webinars. Campus Participation: Athletic External Marketing Campus Communications Team Family Weekend Committee SpectrUM Big Night Committee Week of Welcome Staff Ambassadors Some examples of national membership and development programs include: IMG College Licensing Seminar o Includes industry peer directors, vendors and retailers o Webinars International Collegiate Licensing Association member o Provide bi-annual symposiums including peer directors, vendors and retailers o Listserv sharing of concerns, ideas, policies, etc., across the consortium o Webinars Sports Licensing and Tailgate Tradeshow o Includes industry peer directors, vendors and retailers Workers Rights Consortium o Labor-code partner, provides updates and status of annual reporting issues Criteria 3. - Bullet 3.: Not applicable Criteria 3. - Bullet 4.: Not applicable Criteria 4. - Bullet 1.: Designated Funds: Collegiate Licensing The main source of revenue for this index is royalty revenue, generated through sales of UM-branded licensed merchandise. Examples of some of these expenses are listed below each category, but note that this is not a complete list. We wanted to give examples to show the variety of programs, units and efforts that licensing revenues contribute to both annually and in one-time requests. *Note: percentages and dollar amounts listed are approximates and may shift from year to year depending on need and royalty revenues received. Please see uploaded data sheet for revenue and expense dollar amounts. The main expenses over a five-year period - and a variety of examples within the categories - are:

7 Allocation within funds: 55% (Primarily support to Marketing & Athletics) o $100,000 - annual commitment to Marketing o $110,000 - annual commitment plus additional requests as needed - est. between $5,000 - $30,000 o $19,000 - administrative assessment annual expense o $3,000 - President s Report annual expense o $14,000 - imodules database system for Foundation/Alumni annual expense o $1,000 - UM Family Weekend annual expense Advertising Buys: 14.5% o $50,000 - TV Media Placement during Athletic performances annual expense Campus & Community Support and Public Relations: 17.3% o $36,000 - Academic program WWAMI annual expense o $3,000 Big Sky Documentary Film Festival annual expense o Institutional/Community memberships dues annual dues Missoula Downtown Association City Club Missoula Missoula Chamber of Commerce o Fund branded items/swag for donation/giveaway to both internal and external units and organizations General Office Operating:.01% Payroll: 13% Criteria 4. - Bullet 2.: Changes in royalty revenue, whether an overall increase or decrease, are effected by variations from year to year based on many variables including but not limited to the following. Royalty rate changes Campus contracts o Stadium Merchandise Concession o Multi-Media Rights corporate partners o Beverage o Campus retail store Short-term exclusive programs; i.e. Montana Tradition copper and gold program, elevated royalty and limited run of product availability (increased royalties) Athletic team performance and scheduling enhance or hinder royalty generation o Season success standard and playoffs o Hosted games vs. away games o Weather o Special game-day product promotions o Licensing partnerships with athletic corporate partners use of brand on giveaways, etc. o Gameday/Stadium retail partnerships/concessionaires Retail interest in carrying product o Closing/opening of retail stores o Dedication to maintaining/promoting University brand Vendor participation/investment of University brand o Aggressive sales teams o Participation in Hot Markets o Direct-to-consumer sales Institutional Public Relations Enrollment Legal enforcement/infringement product which takes away from sales of licensed product

8 While the majority of revenues are earmarked and negotiated for annual expenses amongst campus entities and external organizational funding, some changes in expenses may be due to additional funding available for supporting large or small campus and external requests that may assist with operational or promotional needs. These requests are reviewed on a case-by-case basis, and granted based on availability of funds, necessity, return on investment and value to the sector and University. Criteria 4. - Bullet 3.: Through various organizational changes since 2012, Trademarks and Licensing has transitioned under the Integrated Communications sector, and moved offices from the Office of the President to Brantly Hall, now working daily amongst Marketing, University Relations and Alumni Relations. This physical move across campus has increased collaboration and positively impacted the ability strategize with the marketing, communications and outreach efforts that these departments manage, as well as gained efficiencies in sharing operational resources and expertise within departments. Nationally, trademarks and licensing departments are housed under many different areas of campus including Athletics, legal services, business development services, as well as communications and marketing offices with a close relationship to the president office, as our Trademarks and Licensing program is currently structured. A 2015 CASE Educational Communications and Marketing Trends Survey reported that 58% of trademark/licensing programs were the responsibility of communications and marketing activities. Partners from our licensing agency have provided valuable insight that UM s program is in the best place possible on our campus. The current organizational structure for our trademark and licensing program gives us the ability to enact brand consistency across campus at a high level while providing fair decisionmaking regarding the use of the University brand. Criteria 4. - Bullet 4.: Collegiate Licensing does generate external revenue. 100% of the operating expenses are supported by the revenue 50% of a 1.0 FTE is supported by the revenue Criteria 5. - Bullet 1.: Engage Students Where They Are Trademarks and Licensing provides students the opportunity to display their pride for UM. The unit works with student organizations to provide guided access to the University brand. Invest in People Trademark and Licensing affords job opportunities for millions of people - from local businesses to organizations across the world working in factories - by licensing the UM brand. Partner with Place Trademarks and Licensing takes pride in the number of local vendors and retailers we work with. When the program raised UM s royalty rate for national vendors from 12% to 14% in April 2017, we chose to keep local vendors at 12%. This decision helps our local businesses remain competitive with national companies that can negotiate lower pricing for mass-produced items. UM is the only institution with IMG College Licensing that currently does this.

9 Reinvent the Heart of the Curriculum Trademarks and Licensing is involved in reinventing the heart of the curriculum through taking the institutional brand message, which evolves with the mission of the University, and working with licensed vendors and retailers to promote this message. This is an important aspect to licensee and retail sales strategies, as they are interested understanding the philosophy and values of each University. Foster Knowledge Creation and Innovation UM seeks new and creative product to license and recently expanded in the consumable categories where there is repetitive consumption. We, most recently, partnered with two alumni-owned local businesses to bring a licensed ice cream and a beer to market. Criteria 5. - Bullet 2.: Trademarks and Licensing is the only unit that manages licensing of the University brand. This unit has undergone various restructuring in terms of position responsibilities, reporting structure and campus location in the last 5 years, and has effectively realized a positive ROI from those changes. This has been nothing short of a positive impact on all of the programs within this sector, given the amount of creative and collaborative resources available. Additional collaboration with the following entities on campus would be beneficial, as demands and involvement from these areas continue to increase. Legal Services: As Legal Services is rapidly increasing in the demand of local and national trademark processes, as well as enforcement and infringement issues, a more strategic alignment with campus Legal Services would provide efficiencies in strategic management of the trademark portfolio and brand enforcement. Institutional Contract Management With the growth in institutional contracts and demand by external audiences to invest in the University s brand, it s critical that an involved team of individuals from campus handle contract management when the University s brand is involved. This is important so that the University can collectively evaluate contracts and proposals, and ultimately work collaboratively to weigh out instances where the University brand may be promised to entities that could impact management of trademark and licensing s existing or proposed partnerships, impacting the ability to grow royalty revenue and create community partnerships. Criteria 5. - Bullet 3.: Additional resources would be beneficial in the area of assistance with legal matters which would be invested in assistance with Trademark portfolio management (filing of legal documents and costs). Legal enforcement for infringement issues. Software that assists with identifying infringement through use of the University s brand online. Additional resources would also help pay for an additional employee in the unit. More time invested in this program has proved not only a positive return in revenue through the ability to build stronger relationships and grow our brand portfolio, but also would allow for more time collaborating with the

10 campus and community to build a stronger brand reputation together.additional resources would be directly attributed to operational costs that would provide a positive ROI, such as: Investment in additional staff for daily program management operations. Investment in legal services including financial support for and brand management software systems. Travel budget: o To grow vendor and retail partnerships. o For professional development sessions in strategizing for branding and marketing. Marketing/Promotional budget to spread brand awareness and promote product: o Retail Merchandising Investment in in-store signage and promotional marketing. o Investment in digital advertising for creating brand awareness and promotion of licensed product.