OAImages Blog

The Boy Scouts of America (BSA) have introduced new licensing rules for all businesses that produce items bearing any of the BSA’s servicemarks or trademarks.     As might be expect, this has lead to quite the discussion on patch-l.

Russ Kolski, of Kolski’s Custom Accessory, shared the following  summary of the new rules with the group.     This is rather lengthy and has many items of concern to vendors, especially small businesses.     I have reformatted the summary for the sake of readability but present it here otherwise unedited

Step One: Applying for a License

To begin the licensing process, you must complete all the following steps:

1. Complete the application in full, providing Boy Scouts of America with a comprehensive look at your company, its involvement and experience within the licensing industry. The application is enclosed with this packet.
2. Develop a product proposal for the product(s) you wish to license using Boy Scouts of America marks, words or phrases. This plan should include, at minimum, a 3-year marketing plan with target market(s), distribution channels, financial projections, competitive landscape, unique selling proposition market positioning, potential market share, over the license period, and other key information you feel that is relevant to our decision-making process. We cannot treat any submission as confidential.
3. Remit a non-refundable administration fee of $250, along with the completed application. Checks should be made payable to Boy Scouts of America. If your application is successful and you are granted a license, this fee will be applied to your royalty account to offset future royalties due.
4. Provide a representative sample of each product that you plan to produce bearing the marks of Boy Scouts of America. The samples must illustrate your planned method of enhancement. Artwork or mock ups are acceptable for submission. Each product submitted must be accompanied by a Trademark Use Request form (for products created specifically for a council) or Product Disclosure and Specification form (for non-council products), which are also attached.
5. Disclose all manufacturing locations. In addition, Boy Scouts of America requires each licensee to be a member of the Fair Labor Association (FLA) and adhere to FLA’s Code of Conduct; or that you belong to the Worker’s Rights Consortium (WRC) and adhere to the WRC’s Code of Conduct if any part of the Licensed Product is manufactured offshore. Should your application for license be approved, membership documentation for FLA and/or WRC (as applicable) must be provided prior to the execution of a License Agreement.
6. Once you have completed steps 1-5, send the complete package, containing the following items, to the address above:
   • Application
   • Marketing Plan
   • Trademark Use Request Form for each product
   • $250 Application fee
   • Samples/illustrations

   Please be advised, that all questions in the application must be addressed and all requested materials must be provided with the application. All applications, information and submissions become property of Boy Scouts of America.

7. Incomplete (missing ANY of the bulleted items in item 6) application packages will be returned without review. Boy Scouts of America will review each application based on the information provided, and if your application is approved, you will receive a licensing packet. If your application is not approved, you will be notified in writing. The initial review period is typically 6-8 weeks.

As a rule of thumb, Minimum Royalty Guarantees are required with all licensing agreements. These guarantees are determined based on a variety of factors and can vary widely and depending on the product and markets requested for license.

Step Two: The Licensing Process

If your application has been approved for license, Boy Scouts of America will send via email the terms under which a license will be extended and an Intent to License Agreement. To discuss the terms, you will need to sign and return the Intent to License. Then, once there’s agreement on the terms, Boy

Scouts of America will create and send electronically, a License Agreement for your execution.

You must complete the following steps in their entirety and receive a fully executed agreement before you may begin any production of items bearing Boy Scouts of America marks

• Sign and return two (2) copies of the License Agreement.
• Submit a certificate of product liability insurance that names Boy Scouts of America as an additional insured. Minimum limits of liability can be found within this packet.
• Submit membership documentation for FLA and/or WRC (as applicable) must be provided prior to the execution of a License Agreement.
• Submit the company’s identification tag, label and/or packaging that will appear on all products. Boy Scouts of America requires all licensees to properly identify themselves on each product.

Boy Scouts of America will execute the License Agreement, returning one (1) copy of the License Agreement and an invoice for your Minimum Royalty Guarantee, as specified in your Agreement. The invoice is due on receipt.

Step Three: License Maintenance

Once the licensing process is completed, Boy Scouts of America will forward an executed copy of the License Agreement to your company, along with instructions for access to production ready artwork for which you are licensed to use under the terms of your License Agreement

Remember:

• You are only licensed for the marks on the products specified and approved by Boy Scouts of America in your Trademark Use Request Form. Boy Scouts of America does not issue blanket licenses for its marks. A license is only granted for a specific mark (or marks) on a specific product, within a specific territory.
• License agreements typically run 1-3 years and typically require specific performance guarantees with regard to the sale of licensed products. Details of these guarantees are provided in the license packet if you are granted a license.
• You must maintain product liability insurance for each license that you hold, and make sure that an up-to-date copy of your current certificate of insurance is on file with Boy Scouts of America.
• Always secure written approval of artwork from Boy Scouts of America prior to production. Failure to do so will result in the revocation of your license.
• Always secure written approval of any advertising and marketing pieces featuring Boy Scouts of America marks, whether developed by you or a retailer of the Licensed Products. Failure to do so will result in the revocation of your license.
• Complete the royalty report form per your License Agreement and forward it to Boy Scouts of America, remitting any payment due within 15 days of the royalty due date.

Insurance Requirements

Licensees are required to furnish satisfactory certificates of insurance to the Boy Scouts of America for all the required coverage listed below. Such certificates shall be from insurance companies acceptable to Boy Scouts of America, name Boy Scouts of America as an additional insured and include 30 days written notice to the Boy Scouts of America for cancellation or change in coverage.

The coverage minimums are as identified below.

TYPE OF COVERAGE

AMOUNT OF COVERAGE

Comprehensive General Liability Including the following:

• $5,000,000 Combined Single Limit for BI & PD
• Contractual Liability
• Products Liability (minimum $2,000,000.00), including Vendors’ Coverage
• Publishers Liability, if applicable

You must have product liability insurance that includes broad form licensee’s endorsement or limited licensee’s endorsement specifically naming Boy Scouts of America as an additional insured for primary coverage. A certificate of insurance must be provided to Boy Scouts of America upon successfully obtaining a license.

Before folks go off the deep end here with histrionics, consider some important points.

It is not unusual for an organization to protect its trademarks and logos.     It is also not unusual for businesses to require licensing of their logos and trademarks.     Professional sports teams are very good examples of this.

Neither the  fleur d’lis (fdl) nor the acronym “BSA”  is  a trademark of the Boy Scouts of America.     Their is not Boy Scouts of America fleur d’lis.     The BSA acronym is used by several different organizations in the United States.

While this is a major change in policy that will affect businesses that make items for BSA units, councils, lodges, etc. the change is not as great as some may think.     There are a lot of things to be concerned about here, but it is not the end of all  independent companies.   Surely some small companies will be hurt.   However in my opinion, as long as trademarks are not used, theoretically Scouting related work could continue without any change.

Still I’m concerned by this  policy as it seems less concerned with protecting the BSA’s trademarks and servicemarks than it is with making it difficult for independent companies to do business.     This will especially be the case for small runs of low cost items where the additional costs and paperwork requirements will make it difficult for independent businesses to compete, should they try to use BSA trademarks.

Others disagree with me, but I expect this to end up in a court somewhere, especially if the BSA tries to intimidate companies to become licensed for the use of things that aren’t Boy Scouts of America trademarks.   This story will  evolve over time.

Related Posts:

• BSA Licensing, Redux
• Lodge 459: Centennial Uniform Flap?
• BSA Centennial Coin