| Themed Attractions and Resorts (TAR) – License agreements with HIT Entertainment and Sanrio | ||
| Synopsis TAR has signed license agreements with HIT Entertainment and Sanrio for the development of two children’s amusement facilities to be built in Malaysia | ||
| Firm | Client | Role |
|---|---|---|
| Milbank, Tweed, Hadley & McCloy | TAR | International counsel |
| Kadir Andri & Partners | TAR | Malaysian counsel |
| In-house legal teams | HIT Entertainment and Sanrio | In-house counsel |
Milbank has added to its growing list of amusement park licensing experience with another two deals for children’s amusement facilities to be built in Malaysia. HIT Entertainment, which owns the rights to Thomas the Tank Engine, Barney and Bob the Builder, has granted the firm’s client Themed Attractions and Resorts (TAR) a license to build ‘The Little Big Club’.
This will be the first attraction of its kind in Asia. TAR will also develop a ‘Hello Kitty’-branded attraction under a license agreement entered into with Japan’s Sanrio Co, owner of the Hello Kitty brand. It will be the first Sanrio amusement park in South-East Asia.
In-house legal teams at HIT Entertainment and Sanrio led the negotiations for the brand owners. “The key issues from the licensor’s perspective are brand management and brand protection. In-house lawyers are most familiar with the company’s brand policies and brand strategies, so it is often the case that they take the lead on negotiations,” said Darrel Holstein, a partner and head of Milbank’s Tokyo corporate practice.
License agreements for theme or amusement parks need to strike a balance between protecting the interests of the licensor and brand owner, and enhancing the value of the operation for the licensee to ensure its long-term financial viability. Holstein is familiar with these interests, having negotiated other license agreements for the development of Legoland Malaysia, KidZania, Hong Kong Disneyland and Universal Studios Japan.
Most of the issues surrounding the development of The Little Big Club and the Hello Kitty-branded attraction will be related to construction, and will be handled mainly by Malaysian counsel. “We wouldn’t expect to be heavily involved in that aspect of things. I do anticipate that we will continue to support TAR on the issues that involve exploitation of the brand – such as developing a merchandising program for the park and dealing with sponsorship issues,” Holstein said.
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