James Pascual sat in his office, the soft hum of the air conditioner breaking the otherwise quiet atmosphere. The email from Ravello Designs was still open on his screen, and after reviewing it for the third time, he couldn't help but feel a sense of excitement. It wasn't just the monetary value of the licensing deal or the potential for global recognition, but the idea of seeing the characters on actual clothing—on a global scale. Was tempting.
He ran a hand through his hair, rubbing his temple, the stress of managing Espector Studios starting to settle in his bones. They had grown so fast, from coding in a small apartment to managing a multi-million dollar business in the span of just over a year. But with every new opportunity came a new set of challenges. This meeting with Ravello Designs was no different. The stakes were higher now.
Yuri walked in, breaking him from his thoughts. Her expression was unreadable, but he knew better than to assume she hadn't already processed everything about the proposal. She was sharp, the calm in the storm of their rapidly growing company.
"Ready for the meeting?" she asked, closing the door behind her and taking a seat across from him.
James nodded, leaning forward. "I am, but we need to be clear on our terms. This deal could be our first real step into retail beyond toys and collectibles. We're talking about apparel—clothing that will represent us on a whole new level. I want to make sure we're not just giving away our brand."
Yuri smiled, a slight hint of pride in her gaze. "That's why you have me. I've gone through their initial proposal, and while the licensing terms are favorable, I want to make sure we retain control over our image."
James grinned. "You always have a plan."
"Always," she said, opening a folder and flipping through her notes. "First things first, they're offering us a 60-40 revenue split in our favor. That's a good deal, considering we're the ones providing the IP and the designs. But we need to get specific about the distribution rights. Right now, they're only asking for exclusive rights in Asia and Europe, but I want to keep North America in our pocket for a potential future deal."
"That's fair," James said, tapping his pen against the desk. "North America is key, and we can't afford to have someone else control it."
Yuri nodded. "Exactly. I also want to ensure we retain creative control over the designs. We're not just licensing out a logo. We need the power to approve every design, every piece of merchandise. The character integrity is non-negotiable."
James leaned back, his mind whirring. "And royalties?"
"We'll negotiate for a higher upfront fee—₱50 million. The split they've proposed is decent, but I think we can push for better terms. After all, they'll be making a fortune on our IP."
James ran a hand through his hair. "I agree. Let's make sure the terms reflect the value we're bringing. I don't want them thinking this is a walk in the park."
Yuri smiled. "I'll be sure to communicate that."
The Next Day – Ravello Designs Headquarters, Manila
Espector Studios was ready to make a statement. James and Yuri arrived at Ravello's offices in a sleek black van provided by the company, the building's modern façade gleaming in the afternoon sun. The company was a powerhouse in the region, known for its high-end fashion partnerships with some of the biggest names in entertainment and gaming. Espector, however, was not just another IP to slap on a T-shirt. James knew that now.
Ravello's office was a high-rise in the heart of the business district. A lobby filled with glass and chrome greeted them as they entered, the walls adorned with samples of previous clothing lines and their featured collaborations. James couldn't help but admire the slick, polished aesthetic of the place. This was a different world than Espector's homey, creative studio.
They were escorted to a conference room on the 15th floor, where the meeting would take place. The room was spacious, with sleek, minimalist furniture. A long table sat at the center, and on it were mockups of merchandise—plushies, T-shirts, and hats—everything bearing Espector's characters in full color.
As James and Yuri took their seats, a woman in her late 30s entered the room. Her tailored black suit and poised, professional demeanor made her seem like she belonged in the highest echelons of corporate business.
"Mr. Pascual, Ms. Han," she greeted with a smile, her handshake firm and businesslike. "I'm Andrea Santiago, Chief Licensing Officer for Ravello Designs. I appreciate you taking the time to meet with us."
"Thank you for having us," James replied, shaking her hand. He gestured toward the items on the table. "These are impressive prototypes."
Andrea smiled. "We're eager to bring your brand to the fashion world. Our team has already begun developing designs based on your iconic characters. We think there's a huge potential for both casual wear and collectible merchandise."
Yuri, ever the strategist, cut straight to the point. "We're glad you're excited about this partnership. But let's be clear on the terms. We need a higher upfront fee and a more favorable revenue split. This isn't just a licensing deal for us—it's a global brand opportunity."
Andrea's expression didn't change, but her eyes flickered for a moment. "Of course. We're flexible. But our proposal is based on industry standards. We're offering 60-40 in your favor, with an initial licensing fee of ₱20 million."
James nodded. "We'd like to keep North America under our control for now. We think there's untapped potential in that market."
"I can understand that," Andrea said, tapping her tablet. "We can amend that to exclude North America, but that would require us to reassess the revenue split. We would also need to outline the territorial exclusivity more clearly in the contract."
Yuri leaned in slightly. "We also need creative control. We're not just licensing out a logo—we're licensing out our characters. We want the power to approve every design."
Andrea's smile never faltered. "Understood. We can work that into the agreement. We'll ensure all designs go through your internal approval process."
The back-and-forth continued, with each party negotiating details about production timelines, manufacturing oversight, and branding rights. It wasn't long before the conversation turned to royalties, and the tension was palpable. This was a delicate balance.
At one point, Andrea suggested a clause that would allow Ravello Designs to control a small percentage of the designs for specific limited-edition collections. James raised an eyebrow.
"I'm not comfortable with that," James said, his voice calm but firm. "Espector owns the characters. If we allow outside parties to control the designs even in limited editions, it opens the door for dilution of our brand. I want us to retain full control."
Yuri added, "It's not just about the numbers—it's about maintaining the integrity of the brand. If we compromise now, it'll set a precedent."
Andrea nodded. "I understand your concerns, and I'm willing to adjust the proposal to fit your needs. I'll have our legal team send over a revised agreement."
The Deal Finalized – One Week Later
A week after the meeting, the revised contract from Ravello Designs arrived. The terms had been adjusted as requested. The licensing fee remained the same, but the revenue split was now even more favorable. Most importantly, Espector retained full creative control, and North America was explicitly excluded from the deal until further notice.
James reviewed the contract one last time in his office, and with a decisive nod, signed off on it. It was time to move forward.
He stood up, stretching, and looked out the window at the city below. The world was watching. Espector Studios was no longer just a small indie team—it was becoming a force in the global market. Toys, apparel, games. It was only the beginning.