Creative Factor @ Javits

Richard Levy and I once again accepted the TIA invitation to be on its Creative Factor program, the opening day of New York Toy Fair, Sunday 2-12. We had to compete with whiz-bang toys, engrossing games, inflatable novelties, and assorted costumed creatures. Unlike past duo performances, we were split into separate one hour sessions of lively talk and Q and A. Our goal was to give the type of helpful information we scribed into our orginal book,  The Toy and Game Inventors Handbook*.   At our respective sessions, it was gratifying to see a full house of inventors, marketers, lawyers who had traversed the lower bowels of the Javits' corridors to reach us.

This year's topic was contract negotiations. We presented from perspectives established for the Handbook of Mr. Outside (RCL) and Mr. Inside (ROW). Those perspectives we each gained from our thirty plus years of licensing and developing  toy and game product.

Richard spun his always entertaining, anecdotal experiences bookended by Starbird in the past to the just announced return of Furby in 2012  There is little to contest in his 10 steps to negotiating licensing agreements. This wisdom has guided him through a myriad of successes enjoyed throughout his career. So everyone listened up!

Here are Richard's 10 Commandments to contract negotiation he shared with an overarching statement that "at the end of the day, deal-making is about relationships, not transactions".

1.  Negotiate yourself. No one will do it better than you and no one has more to gain or lose. It is advisable to have a lawyer as your backup before you ink your signature.
2.  Only use lawyers experienced with toy industry contracts.
3. Two plus two is never four. Exceptions always outnumber rules.
4.  Never fear to negotiate. Never negotiate out of fear.
5.  If it ain't on the stage, it ain't on the stage. Confirm every conversation with a memorandum to avoid misunderstandings.
6. Keep agreements short and to the point. The length of the contract is inversely proportional to the amount of business.
7.  Do not accept standard contracts. Treat boilerplate terms as variable. Nothing is as temporary as that which is called permanent.
8.  When in doubt, ask. Asking dumb questions is easier than correcting dumb mistakes.
9.  Thou shalt not committee. Any simple problem can be made insoluble if enough people discuss it.
10.  Have fun. The moment a negotiation feels uncomfortable, I pick up my marbles and go home.

My workshop detailed the paper trail inventors encounter showing a new idea. It all begins with a record of the initial meeting with a company rep.

•  The Tip: Don't show a lot, focus on the best and make it a WOW! event. What acquisitions rep can leave a WOW at the gate?  And once the concept goes internal, it will live or die on its own merits and the enthusiasm of a product champion to fit the concept into the company's marketing plan.

•  The Tip: A company's internal process often needs at least 30-45 days for a concept to be stamped as viable; longer than that, Go for the Option! 
Mr. Inside continued on detailing the POT (post option time) to K (code letter for Contract). The talk walked through the business points essential in a K without a focus on all the legalese that shrouds contractual terms and conditions and creates ump-teen page licensee contracts. (The Toy and Game Handbook covers this topic in Chapter 9, Molding the Deal.)

Richard and I enjoy the opportunity to share what we can with inventors. Good that the TIA and the Creative Factor gave us the forum to do that. As we see it, the more inventors know about the business side to complement their creative side, the better prepared they will be to get fair and equitable terms.

Last we saw of our audience, they were rushing to the Javits' aisles, hopefully better prepared to join the fray!

*We are now working on an updated edition which will soon be in e-book form. Watch for news of its release when available on this blog.

Creative Factor at Toy Fair

Promoting the session to Bob Fuhrer: inventor, agent, and strategist for Ken-Ken

My co-author, Richard Levy, and I did an encore of 2009 at the Creative Factor resource center this past Toy Fair on February 15. We were pleased to be part of a knowledgeable group of specialists brought together by Brett Klitsch and sponsored by the TIA to "focus attention of inventors and other creative professionals on the intricacies of working in the toy and game industry".


















Explaining an intricacy of working in the Toy Industry

In this information age when one can stare at a monitor and be linked in various degrees of separation, the three day Creative Factor trumped digital texting and comments by putting high profile personalities and real experiences into the highly relevant sessions. There could be no substitute to hearing industry realities from such experts as Nancy Zwiers of Funosophy, Steve Zuloff of Can you Imagine Corp., Richard Gottlieb USA Toy Expert supreme, Stephanie Azzarone of Child's Play Communication and on and on. Hopefully, the TIA will make the series of topics available in recorded format as part of its continued commitment to the industry's creative sector.


















Standing room only of hopeful inventors

No question the attendees at these sessions have dreams of participating in future Toy Fairs through hopefully licensing ideas so they can join the annual display of 100,000 products. And why not continue to try and create new products for the toy and game industry when this year's billing said there were "7000 products never before seen." With that kind of target to shoot for, it's a great incentive to generate a never before seen gidget or gadget? Who wouldn't want to be the originator of the Toy of The Year? Dream on.....

4 Eyes

In my youth, anyone wearing eye glasses was taunted by the ridicule of having "4 eyes". As hurtful as that might have been then, that is pretty tame by standards of today's bullying. Eyewear has since evolved to where frames and tints make glasses fashion statements. At a Toy Fair Creative Factor presentation with my co-author, Richard Levy, I unveiled my latest inventions to assembled inventors, marketers, and curious guests. The initial line has three SKUs shown here:

The first SKU is The Spotter, to be worn by inventors. These glasses have rose colored lenses that allow wearers/inventors to scan exhibitors' booths and view holes in product lines. No more wasteful speculative time for inventors guessing on how to "fill the holes" to get marketers' attention.






















The second SKU is "The Judge" to be worn by potential licensees of inventor prototypes. The viewer (or as inventors lovingly reference this person, the "product picker") slips on these glasses and can immediately judge the first years product sales. Telepathic waves allow the wearer to determine up to a seven digit output of likely sales volume. The Judge will make for on the spot decisions by the licensee and new found euphoria for licensors.






















The third SKU is "The Banker" that allows successful inventors to see projected royalty streams over a one, two or three year period.

















Last minute production details are being wrapped up. We are on track for a $9.95-$14.95 retail. This eyewear should be a blowout, home run. For those vain users who remember too vividly being called "4 eyes", we are working on contact lens that can give the same results.

OK, if you have read this and are ready to order, it is time for a DISCLAIMER. This product vision is untrue. Maybe the Toy & Game world needs these products, but they aren't in the works yet, at least with me. But I do thank Elope Inc in booth 383 at Toy Fair for loaning these fun specs from their wonderfully whimsical line of playful products.

Creative Factor at Toy Fair

It doesn’t seem possible that Toy Fair ’09 was two weeks ago. Now we should be back to whatever it is we do; inventing, prototyping, pitching, promoting, maybe even planning for Toy Fair 2010. Well, if we can’t deal with time chunks that far into the future, maybe the readying is for the June Licensing Show in Las Vegas or the October Dallas Show or another industry event on the horizon. One thing about the toy and game business, there is always someone available to hear a pitch or a show to attend somewhere. So noodle away, pitch your ideas, maintain your contacts, and by all means keep the industry bustling.

Here's one of the industry's best "bustlers". If you don't
know him you should . . . Kevin McNulty Endless Games

Co-author Richard Levy and I energized SRO crowds at our two Creative Factor sessions as part of a TIA education program.


SRO - Standing Room Only:-) Next year we'll do MSG -Madison Square
Garden- so there's room for all!

Our assigned topics were “invention” and “licensing” which we covered by extrapolating facts and stories from the pages of our Toy and Game Inventors Handbook. We did our best to give empirical, non-theoretical, eye-opening, practical advice from what has been called “the bible” of the industry on its subject. Actually, when we wrote the book, we compiled the insights of many industry leaders. Some of these people have played musical chairs since our pub date, but their words still resonate with currency as if their thoughts were expressed during Toy Fair 2009.

Buy a copy today!
http://www.greatideagear.com/toybook

To set the tone in the Creative Factor sessions, we used such tidbits from the hundreds in the Handbook as:

“The success, the innovation, and the personality of the industry is best exemplified by the independent inventor. The creative inventor serves as a constant reminder that the business is about finding fun for kids and playing Santa Claus for America.”

Bob Moog, President of University Games

Ted Wolfe, long time inventor, saw an inventor’s role as

“adapting previously known devices to previously unknown products. Inventors do not speak only of original or innovative. Recombining is an acknowledged skill of the toy pro.”

Right on Ted! Seems that has happened all too frequently with the advent of “brandwashing” in our industry; a new face (media license) on an old item.


Talk about pizzazz! Here is the marketing maven and shtikmeister with his partner(s).

"Given equally good concepts, the inventor with pizzazz, passion, showmanship and a well thought out presentation will have the edge that could make the difference in a company taking or passing on an item."

Mike Hirtle, Hasbro, Global Vice President of Product Acquisitions

“Inventors should embrace the myriad opportunities entertainment licenses provide. Rather than being locked out by inactivity, I encourage inventors to see licenses as a major opportunity and create innovative product for these brands.”

Roger Shiffman, founder and president of ZIZZLE

Richard and I could not cover all aspects of invention and licensing in our two hours at Toy Fair or even in our 470 page “Toy and Game Inventor’s Handbook.” Being current and active in the business is all about gathering information, knowing the industry, identifying trends, and applying your own personal magic to what you learn each day so you are a creative force in the race to Toy Fair 2010. See you there.


One or both of us will see you next year!