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product placement - who is paying who?

Started by March 30, 2008 04:59 AM
11 comments, last by dashurc 16 years, 7 months ago
Quote: Kirl wrote:
Usually I'd expect the game company has to pay the owner of the brand it wants to use, but what about games like Pikmin?
I'll echo what ibebrett said.

Product placement is an advertising tactic. For example, the appearance of Converse shoes in the film I, Robot was product placement. The advertiser pays for the placement. Always. Licensing is a matter of legal compliance. For example, the use of characters from a protected work of fiction in an original story would be preceded by licensing. The licensor grants the right of use to the licensee per the terms of their agreement. The licensee usually pays the licensor.

While the lines might seem blurry in certain scenarios, they're not.

If you're Blizzard Entertainment and you want introduce Sprite into the World of Warcraft economy, you would have the clout to make a strong case for Coca-Cola to pay for the placement of the product and everything else that entails (e.g., development, publicity campaign.) If you're an unproven developer employing unproven talent to serve the needs of an unproven market, and you wanted to develop a boxing game in which Mickey Mouse is a playable fighter, you'd be forced to pursue the licensing route with Disney because their property, especially Mickey, is worth more than your organization—and possibly your soul—in any currency.
Quote: dashurc wrote:
Any licensing/advertising deal is to be worked out by the lawyers of the interested parties.
If the lawyers are making deals, then something's terribly wrong with the organization.
Morgan Ramsay
Founder, President & CEO, Entertainment Media Council, Inc.
Author, "Gamers at Work: Stories Behind the Games People Play" (Apress, 2012)
www.gamersatwork.org | www.linkedin.com/in/ramsay
This reminds me of a joke, where a member of an amateur rally team had covered their car in lots of ad-stickers. When it turned out that they had some financial trouble, another member of the team asked the first guy: 'You didn't let them put those stickers on for free, did you?', to which the former replied: 'Of course not! We paid for them.'
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Quote: Original post by Morgan Ramsay
Quote: dashurc wrote:
Any licensing/advertising deal is to be worked out by the lawyers of the interested parties.
If the lawyers are making deals, then something's terribly wrong with the organization.


Oops. That's what I get for posting at 2 in the morning.

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