Danna Dueck, from Project Partners Network, discusses why licencing is both an art and a science

Danna Dueck, you’ve been in the licensing industry for a while. Tell me about that; what’s your background?
Yes, I’ve been in the licensing industry for nearly three decades at this point. I’ve worked with a number of different companies both on the inbound and outbound side. I’m currently working with Project Partners Network. Project Partners Network supports manufacturers and other companies to foster and build their licensing efforts whether in strategy or execution.

And until recently, you were with Melissa & Doug – but you’re not limited to the Toy industry, are you?
No, we work with companies in different industries – and in a number of different ways… Whether it’s research to help figure out where their brand can expand, tactical help working out best practices to run a licensing program, or just looking for the next great thing.

And what’s your background, Danna? How did you come to this?
I started my career in toys and games at Patch Products. Now they’re called PlayMonster, but I was there for just over seven years when it was run and owned by the Patch family. Then I went to Pacific Cycle and ran all inbound and outbound licensing for brands like Schwinn & Mongoose and GT Bicycles – sporting goods, but also a whole line of children’s electric ride on cars… We did the big 12-volt vehicles and all the fun things every child wishes they had! From there, I went to a company called DecoPac.

DecoPac, did you say? I don’t know them; what do they do?
The way I describe it is that they make everything that makes a celebration-cake great – except for the cake and the icing! So cake rings, edible decorations and images, cake toppers… It’s a unique market! I oversaw the product line and licensing there. I really enjoyed being part of the celebration market; it gives you another perspective on all the fun moments that you have in your life. And then I went to Melissa & Doug for three and a half years – then to Project Partners Network.

Fantastic! So if I worked for a company that’s done a few toys or gifts, say, and am now looking to pair licensed IP with a product, how do I start?
There are a couple of ways depending on what you want to do. Personally, I’m a big fan of going out and looking at what’s working in the market and then triangulating that with what makes sense for the product you’re trying to create… You really want to have that data. Sometimes it’s fuzzy data because it’s all people’s interests, but it’s about seeing where the market is and how you can align your own product form with that to fill a white space in the market.

It sounds to me like it’s part art and part science…
It definitely is an art and a science, yes. When you start looking, you can see some things in data and store checks… But I also look at entertainment news, I look at what other brands are doing, what’s up and coming in pop culture. You have to stay ahead of things to be able to predict when a trend goes up: you don’t necessarily want to jump on the first thing just because you have a gut instinct. You do have to have different data pointing in the same direction to be able to figure that out…

So yes: there can be a gut feeling to it because you might know the kind of thing you want to do, but there’s science too… It’s about figuring out those key data points because there’s no Magic Eight Ball to tell us everything! You make educated decisions based on the trends you’re seeing in different locations.

When somebody comes to you then, Danna, and says they need walking through it, how does it go? You just take them step by step?
Well, it can be on a case-by-case basis… Maybe they’re looking for trend research and they want to know what’s out in the market. Many companies just don’t have the time to do that part – we take care of it for them; just taking that broader look and reporting on what we’re seeing through a really objective lens… This is what we’re seeing, and this is how we interpret it.

From there, you could also lay out strategies to move forward to hit specific business goals… Because everything should be based on a goal. In licensing, you can’t throw spaghetti against the wall and hope it sticks! Hope is not a strategy… So we then take that data and figure out some options to help a company reached their goals. But it’s a collaboration; we figure it out together.

What signals, Danna, would let me know that I’m ready to do a licensing deal for the first time?
Oh, that’s interesting. My head goes straight to whether or not you understand the technicalities of licensing… Because it’s very easy to look at licensing through rose-coloured lenses – it can seem very exciting and lucrative… But you really do need to think about the infrastructure you have in place to support it… There’re a lot of requirements in a licensing agreement and you do need to set yourself up for success from the beginning.

By doing what, for example?
For example, by making sure that you truly understand the obligations of a license agreement… What are the things you have to do as part of that agreement? Now, I’m not an attorney; I don’t give legal advice, but I know enough to be dangerous because I have a master’s in the study of law…

Ha!
I say that because I’m a big fan of contracts. I see a contract as a roadmap of what needs to be done, what the obligations are and what the expectations of any agreement are. And that can help you understand what your infrastructure needs to be to be able to support a license. It helps you understand what steps you need to take along the way. That’s critical because if you don’t have that infrastructure, or don’t have the capabilities to put that infrastructure in place, then you’re not set up for success from the beginning. From my perspective, I’d recommend that as a critical first step.

I like that; I think that’s a great place to start. I imagine it’s easy to get excited and bolt out of the door on gut instinct… But it sounds like you’d probably start with a little reasoning.
Yes, because going purely on gut instinct can lead to a lot of heartache.

And in terms of having quality conversations, Danna, who should be approaching you at Project Partners Network?
With Project Partners Network, we’re really helping different companies that are looking for that extra bench strength in licensing. So we’d love to hear from companies that want to explore licensing for the first time, or maybe have a small presence and want to build up, or maybe they need that extra trend research, for example.

Perfect. And could it work the other way round as well? Might some potential licensors come to you and to find somebody to produce their IP?
It could, yes; it could if they’re looking for contacts in specific markets or industries, or looking for help to figure out how their brand can extend; which playing fields they should go in. We can help with the research on that.

Wonderful. Thanks, Danna. To wrap things up, is there anything I could have asked you today that I didn’t?
That’s a great question! I think I’d probably just say that the one thing to keep in mind is that any licensing business is a relationship business. It’s about communicating with open creativity because you never know where you’re going to find white space, or what opportunities are going to jump out at you.