What is contract printing and is it allowed?
Contract printing is defined as the following: Use of a Collegiate Institution’s Licensed Indicia to embellish a good provided to a Licensee by its customer. In such cases, the Licensee does not use its own “blank goods” for embellishment, but rather affixes the Licensed Indicia to a good provided by its customer. For the purposes of illustration and without limitation, contract printing is not permitted for products sold to retail for the following reasons: • Generally, when contract printing takes place, Licensees will mistakenly base royalty payments on the cost of embellishing the product with the Licensed Indicia and not on the full value of the Licensed Article. Per the CLC Retail License Agreement, royalties must be paid on the fair wholesale price of the Licensed Article. • The institutions must approve all designs and the type of products upon which its marks are placed. In a situation involving contract printing, an outside third party is providing the “blank good,” therefore