Boy Scouts of America :: Councils and Units

Local Council Supplier FAQ

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Mr. Mazzuca's letter of December 17, 2007 said that a local council is authorized to permit a local supplier to reproduce BSA marks on materials without a license, if that supplier is only producing materials for a single local council or units of that council. We have two questions regarding this paragraph:

1. How is "local vendor" defined?

"Local" is defined as "physically located within the council service area." "Local vendor" means "a supplier of products manufactured within the local council service area." It specifically does not mean a supplier that may reside within the local council service area, but purchases materials from third parties outside the local council service area and resells those materials to the local council.

To be most clear, a local supplier must manufacture the product it is selling within the local council service area.

2. Does a supplier to a single local council still have to have permission from BSA to reproduce the marks, words and phrases?

Yes. The Boy Scouts of America has created a new permission agreement specifically for this purpose. It's called a BSA/Local Council/Supplier Product Sourcing Agreement. This agreement allows a company doing business with a single local council to reproduce product for that council, without royalties, fees, or quarterly reporting (although an annual report is required), provided that the gross sales to that local council does not exceed $25,000 in a calendar year

3. Because of Mr. Mazzuca's letter, isn't the licensing program now "dead"?

The licensing program is not dead. The intent of Mr. Mazzuca's letter was to ease some of the requirements on local councils and local suppliers, not dismantle the licensing program. The Boy Scouts of America remains committed to protecting its marks, words and phrases, and properly managing the use of these marks through standard licensing procedure.

4. Does this mean the local council supplier must have the minimum insurance requirements as specified by BSA?

In the case of a BSA/Local Council/Supplier Product Sourcing Agreement, there is no minimum insurance requirement; however, per the agreement neither BSA nor local councils assume any liability for any claims potentially resulting from their Single Council Supplier Licensees. The local council supplier assumes all liability arising from products sold.

5. What happens if gross sales exceed $25,000 in a calendar year?

The BSA/Local Council/Supplier Product Sourcing Agreement becomes null and void once gross sales exceed $25,000, and local council suppliers must enter into a standard licensing agreement. Royalties are due, per standard rates for the specific product category (e.g., patches, t-shirts, promotional products), on all product sales that exceed $25,000.

6. Why is the clarification necessary? The letter gave us permission to manage the BSA trademark use with our local suppliers. Isn't this a complete reversal from what the letter said?

Legal requirements to ensure that we are protecting our marks, words and phrases mandate that these marks may only be used with specific permission or under license from the trademark property owner, in this case, the Boy Scouts of America National Council. The modification of the licensing program to accommodate a local council supplier using a BSA/Local Council/Supplier Product Sourcing Agreement serves the purpose of the December 17, 2007 letter of easing the restrictions on local councils and local vendors, while allowing National Council to maintain its legal rights and responsibilities to its trademarks.

7. May a local supplier produce materials for resale at council's summer camp trading post?

A local council supplier may produce materials for the local council for resale at a camp trading post provided the supplier has a valid BSA/Local Council/Supplier Product Sourcing Agreement. A local council supplier may not produce materials bearing BSA trademarks for units or other third parties where these materials are for resale.

8. May a local council supplier sell products online?

Selling online would allow units from other councils or other local councils to purchase from the supplier. Selling online, therefore, is not permitted under the terms BSA/Local Council/Supplier Product Sourcing Agreement.

9. Are authorizations and paperwork still required for approval to use the marks?

The local council assumes the responsibility to ensure that BSA trademarks carry the proper attributions and statutory marks for those suppliers operating under a BSA/Local Council/Supplier Product Sourcing Agreement. Guidelines attributions and markings are available at www.bsalicensing.org. Further assistance can be provided by contacting BSA Legal at 972-580-2000 or BSA Licensing at licensing@netbsa.org.

10. How does my local supplier obtain a BSA/Local Council/Supplier Product Sourcing Agreement? How does this process work?

Your local supplier can visit www.bsalicensing.org to start the process. The supplier completes and online form which automatically generates the BSA/Local Council/Supplier Product Sourcing Agreement for printing. The local supplier will print the form, secure the council executive's signature and fax a copy of the signed Agreement to BSA at (704) 588-7587 for record keeping purposes. There are no application fees for the BSA/Local Council/Supplier Product Sourcing Agreement.

11. Can a local council supplier become a "multiple council" licensee?

Yes, a local council supplier may apply to become a Tier IV or Tier III licensee. There is an application fee of $250, the applicant is subject to the licensee application review process, and must meet all requirements to be licensed at this level.

12. Can a local council supplier under the BSA/Local Council/Supplier Product Sourcing Agreement use the Official Licensee Seal?

A local council supplier has limited permission to use the marks, words and phrases of BSA specifically for local council purposes. A local council supplier is not considered an Official Boy Scouts of America Licensee and cannot use the Official BSA Licensee Seal or refer to itself as an "Official BSA Licensee" or "Official BSA Vendor" or "Official BSA Supplier."

13. The letter also said that companies providing donations are not required to be "licensed". Wasn't this true before the letter?

Yes, when products are donated to a local council we have required that a Council Royalty Wavier Request be completed. This one page form essentially grants a license or permission for one-time use of the mark on the donated product. For Legal purposes, the use of this form is still required and is available for download at www.bsalicensing.org. There are no fees associated with securing permission for use of BSA trademarks on products donated to local councils.

14. May a local council resell materials donated by a local council supplier at the council's camp trading post? May a local council resell materials purchased from a local council suppler at the council's camp trading post?

A local council may resell materials purchased or donated from a local council supplier at the council's camp trading post, provided that the local council supplier has a valid BSA/Local Council/Supplier Product Sourcing Agreement, and that such sales are not in violation of the council's Distributor Agreement with BSA National Council, Supply Group. Council trading posts are not subject to the terms of the Distributor Agreement unless the council intends to operate the trading post as a day-to-day operation.

15. What about National Council groups, divisions, departments and services?

The BSA/Local Council/Supplier Product Sourcing Agreement covers only suppliers to the local council under the parameters of this Agreement. Those local suppliers under this Agreement may not sell to National Council groups, divisions, departments or services. National Council groups, divisions, departments and services are subject to BSA's Purchasing and Contract Approval Policies and Procedures or may purchase from Official BSA Licensees.

16. The Local Council Supplier Product Sourcing Agreement requires (2) signatures. Who should they come from?

For local council suppliers, only the president or the owner of the company can execute the Local Council Supplier Product Sourcing Agreement as it is a binding legal agreement between the local supplier and BSA. For BSA, the signature of the Local Council Scout Executive is required.

Examples:
Situation	Requirement	Notes
A t-shirt company provides camp t-shirts to a single council.	BSA/Local Council Supplier Sourcing Agreement	Written permission from BSA National Council is required for the use of BSA Trademarks. Sales up to $25,000 are royalty free. Once sales exceed $25,000, the BSA/Local Council Supplier Sourcing Agreement is null and void and the local council supplier must secure a standard license Agreement. All sales over $25,000 are charged the royalty at the prevailing product category rate. An annual report is required. Local council suppliers accept full responsibility and liability for products sold under this agreement.
A t-shirt company provides t-shirts to units of one council, and the camp of a different council OR A t-shirt company provides t-shirts to multiple council camps OR units of more than one council.	Tier III: Council and Unit Supplier License	Written permission from BSA National Council is required for the use of BSA Trademarks. Since sales are to more than one local council or to the units of more than one local council, royalties would also be required. Sales up to $25,000 to the local council in which the licensee is physically located are royalty free. Royalties are reported and paid quarterly. Minimum insurance requirements must be met.
A printing company provides recruiting materials for sale to multiple local councils AND only sells BSA branded items to local councils	Tier II: Council Supplier License	Written permission from BSA National Council is required for the use of BSA Trademarks. Sales up to $25,000 to the local council in which the licensee is physically located are royalty free. Sales over $25,000 are charged the royalty at the prevailing product category rate per the agreement. Royalties are reported and paid quarterly. Minimum insurance requirements must be met.

Trademark Use Explanation and Summary
Agreement Type:	Summary Description:
BSA/Local Council/Supplier Product Sourcing Agreement	May provide custom materials, which are not for resale, to a single local council and the units of that council. A local council supplier is the actual manufacturer of product being produced and is physically located within the local council service area. May not sell or advertise products bearing BSA marks (or intending to bear BSA marks) online or through a channel that would be considered outside the local council service area. May not use the Official BSA Licensee seal. Sales up to $25,000 are royalty free. Once sales exceed $25,000, the BSA/Local Council/Supplier Sourcing Agreement is null and void and the local council supplier must secure a standard license Agreement. All sales over $25,000 are charged the royalty at the prevailing product category rate. Royalties are payable annually when submitting an annual report.
Tier IV License: Council Supplier License	May provide custom materials, which are not for resale, to all local councils, but not units of those councils. (Generally, this would be printers, awards companies, etc.) May not sell products bearing BSA marks (or intending to bear BSA marks) online or through a channel that would be considered a direct-to-consumer channel. Sales up to $25,000 to the local council service area in which the licensee's headquarters is physically located are royalty free. Sales over $25,000 are charged the royalty at the prevailing product category rate per the Agreement. Royalties are reported and paid quarterly.
Tier III License: Council and Unit Supplier License	May provide custom materials to all local councils, units of those councils and individual members (direct to the consumer/member). May resell to other Tier III Licensees, if authorized. May sell products online, if authorized. Sales up to $25,000 to the local council service area in which the licensee's headquarters is physically located are royalty free. Sales over $25,000 are charged the royalty at the prevailing product category rate per the Agreement. Royalties are reported and paid quarterly.
Tier II License: National Council, all local councils and units	May provide custom materials to all National Council groups, divisions, departments, services, all local councils, units of those councils and individual members (direct to the consumer/member.) May resell to Tier II or Tier III Licensees, if authorized. May sell products online, if authorized. Sales up to $25,000 to the local council service area in which the licensee's headquarters is physically located are royalty free. Sales over $25,000 are charged the royalty at the prevailing product category rate per the Agreement. This does not apply to National Council groups, divisions, departments or services. Royalties are reported and paid quarterly.
Tier I License: Commercial (Wholesale, retail, direct to consumer - non-Scouting channels)	May provide custom or standard materials for resale (wholesale or retail) to the consumer or trade markets. May resell to Tier I, Tier II or Tier III Licensees, if authorized. May sell products online, if authorized. Royalties are charged per Agreement. Royalties are reported and paid quarterly.