George Lucas' Master Class on the Value of Intellectual Property Rights
George Lucas' vision of the value of intellectual rights centers principally around the Star Wars franchise. When Lucas began his venture into the Star Wars universe, he took a risk that eventually led to one of the smartest business decisions in film history.
Here is a brief overview:
Merchandising Rights: When Lucas was negotiating his deal to direct the first Star Wars film, he made an unconventional request. Instead of asking for a higher directorial fee, Lucas asked for the merchandising rights to Star Wars. At the time, merchandise for movies wasn't a big market, so the studio (20th Century Fox) agreed, likely thinking it wasn't giving away much.
Sequels: Along with merchandising rights, Lucas also negotiated to retain the rights to any sequels. This was considered unusual at the time, but he managed to do it.
Outcome: Star Wars became a cultural phenomenon and the value of those merchandising rights skyrocketed. From toys to t-shirts to video games, Star Wars merchandise has generated billions of dollars in revenue, far surpassing the box office earnings of the movies themselves. Retaining the rights to sequels allowed Lucas to have full control over the direction of the subsequent films and benefit financially from their success.
Sale to Disney: In 2012, Lucas sold his company, Lucasfilm, to Disney for over $4 billion, half in cash and half in Disney stock. This included the rights to the Star Wars and Indiana Jones franchises.
George Lucas' foresight, and belief in his vision, allowed him to retain intellectual property rights that would prove incredibly lucrative. His story serves as a lesson in the power of these rights and in the importance of believing in one's creative work. So, the next time your go to sell a creative work, remember George Lucas.