carolina.gif (1377 bytes)

                                                                                                                                                                                                                                          NEWS SERVICES
210 Pittsboro Street, Campus Box 6210
Chapel Hill, NC  27599-6210
(919) 962-2091   FAX: (919) 962-2279

Trademark licensing revenue sets new UNC record

CHAPEL HILL -- The University of North Carolina at Chapel Hill’s latest net licensing royalties and related investment proceeds represent the strongest performance in the history of the university’s trademark licensing program.

The total, for fiscal 2001-2002, was $3.58 million, up about $399,000 – or more than 12 percent – from the previous year, according to a report presented today (Sept. 25) to the UNC Board of Trustees. After payment of operational expenses, $2.52 million was available for general scholarships and $841,393 was available for the department of athletics.

UNC policies control the use of trademark language and logos. When businesses receive approval to use these marks, the university shares in the proceeds through its trademark licensing program. At UNC, 75 percent of net proceeds from the licensing program go toward general scholarships and 25 percent go to the department of athletics.

UNC continued as the Collegiate Licensing Co.’s strongest performer, followed by the University of Michigan and the University of Tennessee, said Rutledge Tufts Jr., director of trademarks and licensing at UNC. The university’s royalties earned this year represent retail sales of about $105 million, and the combination of Nike USA and Brand Jordan established Nike as UNC’s largest licensee, with royalties of about $885,000, he added.

"While royalty revenues are extremely important, it may well be that the greatest impact of a strong licensing program over the long run is ensuring that commercial uses of the university’s marks resonate with its values as a leading institution of higher education," Tufts said.

The Atlanta-based CLC represents UNC, as well as more than 180 universities, bowl games, conferences, the NCAA and the Heisman Trophy.

The trademark licensing net income – as of June 30, 2002 – available for student scholarships represents an increase of about $400,000 from the previous year, said Shirley Ort, associate vice provost and director of scholarships and student aid. This money is used for need-based financial aid and was particularly crucial in the months before the 2002-2003 academic year, since the university experienced an overall 10 percent increase in financial-aid-eligible students from the previous year, she said.

"This level of increase in our portion of the trademark royalties was an extremely pleasant surprise, as we had reached a point this summer when we were scrambling to meet our commitments to an even greater pool of eligible students seeking need-based financial aid," she said.

- 30 -

News Services contact: Deb Saine, (919) 962-8415