The Board of Regents recognizes the merits of collegiate licensing programs. In particular, licensing programs serve to: (1) generate funds to support student services, athletics, or other programs; (2) promote the positive image and identification of an institution; and (3) protect an institution’s reputation, good name, and image by permitting only appropriate uses and assuring that only quality products bear the institution’s name and symbols. For these reasons, the Board of Regents supports the establishment of a collegiate licensing program at any University of Wisconsin institution, subject to the following guidelines. It is at the discretion of each University of Wisconsin Institution to determine whether the establishment of a collegiate licensing program serves its interests.
To ensure that licensing programs are consistent with other University of Wisconsin policies and objectives, collegiate licensing programs at any University of Wisconsin Institution should adhere to the following guidelines:
(a) Retailer Exemptions:
As a general policy, University of Wisconsin Institutions shall not exempt sales of licensed goods to some retailers from licensing fees and/or royalties, while charging fees and/or royalties on sales of goods to all other retailers. Exemptions for only certain retailers provide differential treatment and a competitive advantage to one set or retailers. Such policies are inconsistent with the University of Wisconsin Policy on Competition with the Private Sector (See Policy 12-1: Competition with the Private Sector). A University of Wisconsin Institution shall charge licensing fees on sales to bookstores it owns, operates, or leases if the institution is charging licensing fees on sales to any outside vendors for the same items. An example of a prohibited retailer exemption is a “geographic” exemption that exempts from fees and/or royalties sales to private sector vendors within a specified geographic area, such as the area bordering the institution’s campus.
(b) Consumer exemptions:
Except as stated in (d) below, University of Wisconsin Institutions shall not exempt sales to some types of consumers from licensing fees and/or royalties, while charging fees and/or royalties on sales to all other consumers.
(c) Product exemptions:
University of Wisconsin Institutions may exempt selected products from licensing fees and/or royalties. Examples of products that may be appropriate for exemptions include selected school supplies, which are bought primarily by students, and craft items produced by local individuals or shops.
(d) Internal consumption exemption:
University of Wisconsin Institutions may exempt from licensing fees and/or royalties purchases or internal university consumption. All such purchases shall be from licensed manufacturers.
2. Use of Licensing Revenue:
A University of Wisconsin Institution shall use the revenue generated from collegiate licensing for programs or activities with direct benefits to students. Examples of programs with direct student benefits include student athletics and student scholarships.
3. Internal versus External Administration of Licensing Programs:
Each University of Wisconsin Institution that establishes a licensing program should determine whether it is more cost-effective to administer the program internally with university employees, or externally by contracting with an outside agent. Institutions shall seek the most favorable contractual terms possible with outside agent(s), and use these terms as the basis for a cost-effectiveness comparison with an internal program. Except for programs with minor activities, licensing programs shall be financed solely from licensing revenue.Prior to entering into a licensing contract, a University of Wisconsin Institution shall have the potential contract reviewed by University of Wisconsin legal counsel at the System Administration level. Any licensing contracts concluded by a University of Wisconsin Institution must be reported to the Board of Regents.
4. Registration of Marks:
Federal and state registration of any mark by a University of Wisconsin Institution shall be in the name of the Board of Regents of the University of Wisconsin System.
5. Design Standards and Use Guidelines:
University of Wisconsin Institutions with collegiate licensing programs shall develop design standards and use guidelines and make them available to potential licensees.
6. Technical Assistance:
The University of Wisconsin System Office of the General Counsel shall serve as the technical assistance contact point for the University of Wisconsin System for collegiate licensing. University of Wisconsin Institutions shall report licensing disputes within thirty days to the System Administration General Counsel.
History: Res. 5791 adopted 5/10/91.