The right of publicity is the inherent right of each person to control the commercial use of his or her identity. The right, if available, generally protects a personality’s name, image, voice, signature, or likeness. Protection and exploitation of this intangible right, both during a celebrity’s lifetime and post-mortem (as dictated by the applicable state law), has become a valuable (if not the most important) component of a celebrity’s asset portfolio. Industry expert, Mark Roesler, and his team will discuss the legal framework behind the right of publicity and the processes for which this abstract right is valued. Included will be a discussion of common methodologies used to value intangible assets, the unique challenges that arise when valuing the right of publicity, and the emerging contexts for which valuation of this right may be necessary.
Program Agenda
Who is CMG, and what do we do?
What is the Right of Publicity (“ROP”)?
Why protect?
How to monetize the ROP?
Generally there are two ways to monetize the right of publicity.
The estate can police
The estate can license
Why would the ROP be valued?
Damage Cases
Estate Taxation
Endorsement Negotiations
Sale of an Asset
Marital Dissolution
How is the right of publicity valued?
General
Valuation Methodologies Commonly Used:
Market
Choosing appropriate market comparables
Cost
Income
When available, the Income Approach is best suited for the valuation of the Right of Publicity because of the unique nature of the personality and common problem of finding suitable comparables.
Establishing Future Income:
The Need to Isolate ROP Related Revenue in Pre-Valuation Date Revenue
Expected remaining life of the asset:
Applicable Discount Rate:
There are several factors that we consider when determining the appropriate discount rate when determining the projected future stream of income.
Marketability of the asset:
Legal Limitations/ Risks
State based right in every state.
Intersection of ROP and Federal Trademark Law:
Economic Damages Assessment
Examples of Valuing the ROP - The valuation of such a right has become critical in various contexts including marital dissolution, infringement damage assessment, estate taxation, and even endorsement negotiations.
Estate Tax Cases (Michael Jackson)
OJ Simpson
Learning Objectives
Describe the legal framework behind the right of publicity
List commonly used methodologies to value intangible rights, such as the right of publicity; and
Restate the challenges and risks of valuing the right of publicity
BVR's Satisfaction Guarantee
Business Valuation Resources offers a 100% money-back guarantee on our training services. If you are not completely satisfied
with your experience, or have any feedback, please contact Business Valuation Resources at 1-503-479-8200 or
customerservice@bvresources.com.
