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Contract Lengths Steadier Than Ever At 3 Years

Respondants to TLL’s Annual Licensing Business Survey report extreme stability in the length of the average licensing contract. Over 89% of licensing executives report that their contract lengths are flat from last year, with those experiencing lenghtened or shorter contracts evenly split (5%). This number is up from last year, when more than four-fifths (88%) of respondents said that their contract lengths were flat from 2014.

Most contracts were for three years (62%), followed by two years (19%), one year (14%), and five years or longer (5%). The trend continues from last year, where most respondents (56%) reported average contract lengths of three years. Contract lengths vary by the type of property (entertainment properties tend to have shorter term lengths than corporate brads) and product category (in the same way, deals for publishing tends to outlast those for toys).


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