We ask group md Chris Rodman what a leave vote could mean for his business.
On June 23, the UK will go to the polls to decide if we stay or leave the European Union. If the much talked about ‘Brexit’ happens, there is no doubt the ramifications on businesses would be huge, with both positive and negative elements.
The Source asks some licensees for their thoughts on how a leave vote could impact their companies, as well as the UK licensing industry as a whole.
Today: Topps Europe
Chris Rodman, VP & group md, Topps Europe
What affect could a leave vote have on your business?
“Topps currently sells in all 28 EU countries, so the likely regulatory vacuum that will result immediately post Brexit will be challenging. However, as a global business, we also trade in 60 countries outside the EU, so having to deal with one more in the form of the EU is not something that causes us undue concern.”
How might it affect the UK licensing industry as a whole?
“It is the sale of rights where we are likely to see the most impact. A Brexit will, due to the current free movement of goods regulations, mean that pan-European deals will be replaced by the need to split out the UK from the rest of the EU. Which, depending on which side of the fence you are on, has both advantages and disadvantages.
“Costs will rise and margins will fall for pan Euro businesses who currently source licensed product in low production cost EU markets and ship goods to the UK. Unless, of course, prices to UK customers are increased.
“It could be argued that UK only sales and royalties will increase once the free movement of goods is removed, as it will protect the UK from product licensed in one of the Euro denominated countries being shipped into the UK.
“Conversely, companies that currently purchase product licensed for the UK will not have the ‘free movement of goods argument’ allowing them to ship to any EU country.
“Furthermore, a level of complexity will be added when you seek legal protection and recourse for the licence you have purchased for the UK separately from the rest of the EU – which under current EU legislation provides for an open, transparent and non-discriminatory sales process.”
This feature originally appeared in the Summer 2016 edition of Licensing Source Book. Click here to read the full publication.
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