James turned toward her, mid-sip from his thermos. "From who?"
Yuri's eyes scanned the message, her usual neutral expression breaking into something resembling surprise. "K-Trax."
He blinked. "Wait, the K-Trax? The toy company?"
She nodded slowly. "They want to schedule a meeting. Licensing and merchandise partnership proposal."
James set his coffee down and straightened his posture. "Show me."
Yuri handed him the phone.
[To: Espector Studios
From: Caroline D. Ong, Regional Director – K-Trax Toys (SEA)
Subject: Partnership Inquiry – Licensing & Merchandise
Dear Espector Studios.
Congratulations on the ongoing success of Furious Birds and the Espector brand. The performance of your intellectual properties has not gone unnoticed.
K-Trax Toys Southeast Asia would like to explore a potential licensing partnership for physical merchandise based on your games, including but not limited to action figures, plush toys, keychains, and collector-grade items.
We are open to a formal meeting at your earliest convenience.
Sincerely,
Caroline D. Ong
Regional Director – SEA
K-Trax International Holdings]
James handed the phone back, a thoughtful look settling across his face.
"Get her on a call," he said calmly. "Let's schedule that meeting—soon."
Yuri nodded, already typing. "I'll try for tomorrow."
"No," James said, already heading for his office door. "Tell them we'll clear an hour right now if she's available. And book the executive meeting room."
Executive Conference Room, Espector Studios HQ
The room was already set up when Caroline arrived.
She stepped through the glass doors with the poise of someone used to boardrooms and international deals. Late 30s, tailored corporate dress, neat ponytail, tablet in one hand. A senior account executive followed behind her, lugging a hard case presumably filled with samples or presentation materials.
"Mr. Pascual," she greeted, offering her hand. "Thank you for accommodating us on short notice."
James shook her hand firmly. "Pleasure's ours. Please—have a seat."
Yuri slid into her spot to his right, already pulling up files on her laptop.
Caroline wasted no time. "As you may know, K-Trax handles manufacturing and global distribution for over 160 licensed properties. We believe Espector Studios, and all of its games have strong potential for retail success as there is a huge demand for it. We're looking at everything from mass-market toys to limited-edition collectibles."
Her assistant opened the hard case and laid out several mockups on the table—3D-printed samples of the toys from Furious Birds, FlapFlap Hero, Kart, and everything Espector Studies had.
It was well-made—tight stitching, soft materials, and attention to detail in the eyes and expression.
"These are solid," he said.
Caroline smiled. "We move fast. These prototypes were rendered within 48 hours of your game hitting 100 million downloads. Our Shanghai team expedited the models."
James leaned back slightly, expression unreadable. "I assume you've already prepared a licensing draft?"
"We have," Caroline replied, tapping her tablet. "Key terms include a 60-40 revenue split in your favor, with Espector retaining creative veto rights over all designs and branding applications. Standard five-year deal with options for renewal."
Yuri and James exchanged a glance.
"Upfront payment?" James asked, calm but assertive.
"₱15 million initial licensing fee," she replied smoothly. "Additional royalties begin after breakeven on production and logistics costs, with quarterly sales reports shared transparently."
Yuri raised an eyebrow. "Any exclusivity clauses?"
"Only within our product category," Caroline answered. "Toys, figures, plushies. You're free to partner with others for apparel, books, or digital goods."
James folded his arms, thinking. It was a surprisingly fair offer—generous, even. But that only made him more cautious.
He leaned forward.
"We appreciate the terms, Ms. Ong. But just to be clear—we retain full ownership of the IP. Any likeness, character expression, or branded product must pass through our final internal approval. That includes international SKUs."
"Understood," Caroline said.
"And we want shared access to manufacturing logistics. Not micromanaging—just transparency. Our audience is young, and quality control is non-negotiable."
"Of course. You'll be added to the vendor review cycle."
"Lastly," James added, "we reserve the right to terminate the agreement if there are any breaches involving child safety certifications, material sourcing violations, or misrepresentation in any market."
Caroline nodded without hesitation. "That's all industry standard on our end. We have worked with huge companies."
James smiled faintly. "Good. Because this is more than merch for us. These characters mean something to our players."
A pause.
Yuri then spoke up. "We'll want a clean termination clause. Six-month buffer. And royalties must be based on net sales, not gross—net as defined after logistics, not marketing."
Caroline tapped her tablet, adjusting her notes. "I'll have legal refine the clause and send a redraft tonight."
"Perfect," James said, standing. "If everything checks out, we'll countersign by the end of the week."
Caroline stood as well, extending her hand again. "Looking forward to it, Mr. Pascual. And congratulations again. The industry is watching."
***
[Later that Night — Internal Memo Sent to All Staff
Subject: New Frontier: Espector x K-Trax
Hey Team,
We've entered official negotiations with K-Trax Toys for a global merchandise deal. More details soon—but this means our creations might end up in stores, shelves, and collector's hands around the world.
Be proud. We have earned this.
— James]
Later that night — after the internal memo had gone out and most of the team had gone home — James was still in his office, reading over the redlined version of the contract that K-Trax's legal team had already sent back. Fast. Professional. No red flags, at least from the initial glance.
He leaned back in his chair and rubbed his temples. Everything was moving so quickly now — success, press, partnerships. Barely a day after hitting 100 million downloads, and already the doors of the global industry were swinging wide open.
Then, another notification popped up in his inbox.
Subject: Apparel Partnership Proposal – Exclusive Licensing Opportunity
He clicked it.
This one wasn't from K-Trax.
It was from Ravello Designs, a premium lifestyle apparel company with a strong foothold across Asia and growing presence in Europe. Known for sleek, high-quality licensed merchandise, Ravello had worked with esports teams, anime properties, and even huge game publishers.
James skimmed the message, eyes narrowing slightly as he reached the second paragraph.
[We at Ravello Designs are reaching out to formally express our interest in securing exclusive apparel manufacturing and distribution rights for Espector Studios' intellectual properties.
We believe the iconic characters and themes of Furious Birds, FlapFlap Hero, and your other titles align perfectly with current youth and gaming fashion trends.
Our proposal includes a competitive advance licensing fee, generous revenue share, and collaborative design oversight.
If you are open to discussions, we would be honored to meet at your earliest convenience.
Sincerely,
Andrea Santiago
Chief Licensing Officer, Ravello Designs]