INTA 2013: commercial co-ventures take off

Panellists at the INTA 2013 meeting have said commercial co-ventures, which carry associated trademark risks, are becoming increasingly popular.

CCVs are business-charity ventures selling products for non-fundraising purposes, usually including associated advertising campaigns. Often, the charity receives a portion of a company’s revenues.

Charles Watkins, associate at Webster, Chamberlain and Bean LLP, said CCV contracts typically require details on trademark licensing, the goods and services offered and the percentage per sale that the non-profit receives.

Additionally, he said, contracts may demand payments to be made every 90 days, details on advertising disclosures and definitions of the scope of the trademark use.

Sarah Hall, chief legal officer at ALSAC/St. Jude, the fundraising organisation of St Jude Children’s Research Hospital, said CCVs result in increased donations for charities and more awareness about them.

But she said: “You have no control over how adverts are designed or where the adverts with your trademarks are placed. There are brand risks, significant legal work and many opportunities for non-compliance.”

Picking the right business to work with is crucial, Hall said, as CCV campaigns will mirror companies’ usual marketing campaigns, some of which could be undesirable for a charity.

CCV regulation is increasing, according to Hall, and an “important part of the regulatory puzzle is the increased digitisation of records”.

Karen Hughes White, senior vice president of strategic partnerships, ALSAC, said CCV agreements have to be mutually beneficial and that “disclosure wins the day”:

“Start with a disclosure … How is this going to happen? Where is the dollar? What are we going to tell the consumers? Start with the end in mind,” Hughes White said.

She added: “We’re definitely going to see more CCVs”, noting that a big challenge is promoting them through multiple channels in the face of increased advertising costs and increased regulation.