Valuation of Right of Publicity and Pricing of Deals

• Author: Weston Anson
• Pages: 169-170

169

Valuation of Right of Publicity

and Pricing of Deals

We begin this section by looking at how to value intellectual property. With all intellec-

tual property it is critical to establish value in a specific environment—pricing a deal,

a merger, or even a mediation and arbitration. Chapter 11 gives us a view of how to

establish and understand IP valuation methodologies, both in deals and in court. More

than describing just the basic methodologies, it outlines a few other associated method-

ologies. In addition, it unlocks some of the mysteries of discount rates, life spans, and

other IP valuation issues.

Chapter 12 deals with the actual valuation of a midlevel celebrity’s right of publicity.

There, both deal value and litigation value are established in an actual case study envi-

ronment. That particular case happened to occur under section 3344 of the California

Civil Code. In that case both actual and transactional values are established, and unjust

enrichment and litigation values are laid out for the reader.

Chapters 13 and 14 provide the results of our research into the factors that influence

pricing in celebrity deals. We point out that in these deals what occurs is the uniting of

two brands: the celebrity brand and the endorsee brand. The celebrity is united with a

retailer, or a product, or an event, or a corporation. Each is unique of course. Also, the

spokesperson deal, the endorsement deal, and the licensing deal are all different; and

we offer some detailed statistics in chapters 13 and 14 on the quantitative and qualita-

tive factors that can be used to set parameters for right of publicity deal structures. In

chapter 13 we also look at some qualitative data and some substantive quantitative data

that can serve as useful guidelines for the reader to establish price and pricing for their

own individual deals.

Chapter 14 then carries on by explaining the four main factors driving celebrity

endorsements, and applying them to many case studies. In that chapter you find ten

case studies of various athlete endorsements stretching over a period of 20 years. In

PART III

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