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recognise, where an 18-year-old might go in somewhere and not know the licence.” But even an evergreen licence comes with hazards,


if there is a monetary guarantee (MG) in the contract. This can cause a real headache for developers, says Slavin: “Rights owners all want MGs now, even on a dormant licence, without giving you, the developer, any guarantee on anything in return. A few years ago we paid a very large sum of money as an initial payment against royalties for a TV show, and they gave us a load of figures and information on what it was going to do. But what they couldn’t guarantee was that after the first 20 episodes, would there be any more? They thought it would almost definitely happen – but it ran for three weeks, then came off the air never to return. It stopped earning us money after about four months and we were paying the MG off for three years.


To attract a 40-year-old pub player, a Lady Gaga licence might not be the way forward


“Even charities want MGs now. If I went to a


charity and said, we want to use your logo on our game and we will donate 20 percent of whatever the game earns to your charity, they want a MG. And this is when you are only trying to donate money for no reason other than trying to do something nice!” One solution is to use themes that nobody owns –


for example Battle of Britain – to tap into a general zeitgeist and identity that appeals to certain age groups. It’s simple and effective, and the games look great.


Getting it wrong Success can also backfire, resulting in a huge


increase in the cost of the licence, or even a complete overhaul of how the deal works. Recalls FatSpanner’s Slavin: “One well-known game show licence was bought before the show had even been screened in the UK, and so was acquired for a reasonable sum. Then the licence became very successful, alongside the show, and when it came up for renewal a couple of years later an unreasonable amount of money was asked for renewal. Then the game show’s owners came up with a new idea – developers could tender for the rights to develop the game, and in a role reversal, the producers would reap 80 percent of revenue to the developer’s 20 percent. By that time the licence was so strong, they could do that. “But for developers like us, you help create and


grow the brand, bring it to the public, and strengthen the brand – but when it becomes convenient, the rug can be pulled from under you by the licence holder. That’s why we – and many of our competitors – are now trying to find that balance between licensed products and building our own bank of products.”


LICENCES Perfect for the pub


With a rich history in licensed gaming products, JPM continues a long line of successes with the recent Al Murray the Pub Landlord tie-ins. Past successes include the phenomenal Who Wants to be a Millionaire?, Catchphrase, and of course Bullseye, all staples of the modern pub and legends in the quiz machine world. Finding the right licence is about


many things, but much depends on matching the licence to the location, explains sales and marketing director Simon McCarthy: “We knew from the outset that Al Murray the Pub Landlord was perfect for the UK pub and club sector, as the act is a celebration of the pub and club culture. The Al Murray the Pub Landlord is a highly-targeted and visible brand with strong TV presence and a series of sell-out tours.” The success of a brand, though,


is never guaranteed, as JPM well knows. McCarthy outlines the reasons Al Murray and others have proved such a success: “A successful licence has to be based on a brand that is successful in its own right. A strong brand will not redeem a poorly- performing base game but the use of a well-recognised brand can act as an ‘attract mode’ and deliver walk-up appeal. The brand has, therefore, to be strong, immediately recognisable and appropriate to the target audience. “It’s important that the commercial aspects of a licensing agreement work for both parties.


In the UK, purchasers are reluctant to pay a premium for a licensed game unless it’s proven to drive income, so it’s important that the use of a licensed brand adds quantifiable additional value.” Having a strong


development team within the company, and the means to identify the next big licence, may be the hard part, but it seems to be something JPM do rather well. McCarthy adds: “JPM has an excellent development team with a focus on creativity. The team constantly monitors the media and is closely aligned to all aspects of popular culture. We do get approaches from licence owners but we try to secure first-mover advantage wherever possible.” There are plans to broaden


the Al Murray offering, with a UK Category C/£70 analogue AWP product coming soon.


THE INDEPENDENT VOICE OF THE AMUSEMENT AND STREET GAMING INDUSTRY MARCH 201229


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