Harvard Will Require HSA to Pay Royalties

As part of a continuing effort to delineate what is and what is not an acceptable use of the Harvard name, the University's trademark office has asked Harvard Student Agencies (HSA) to pay the University royalties on its line of Harvard insignia merchandise.

Harvard requires that all companies that manufacture its apparel pay the University a 7.5 percent royalty.

Because of an understanding with the University that has been in place for over six years, HSA's business is currently the only exception to that policy. Harvard's trademark office calls the exemption inherently unfair.

"[HSA's] been getting away with this for a long time," said Enrique J. Calixto, the University's United States trademarks administrator. "No other Harvard group or part of the University would be allowed to open a store and sell generic insignia products to the public."

Members of the HSA board of directors, composed of students, alumni and Harvard administrators, met last night but declined to comment.

Calixto said the understanding that allows HSA to sell insignia merchandise royalty-free was instituted by one of his predecessors and only recently came to his attention. He contacted HSA three days ago to notify them that things would have to change.

"I called them and I asked, 'Would you please conform to the licensing rules?'" he said.

Calixto repeatedly characterized his decision as a matter of simple fairness.

"[HSA] can make [products] cheaper, so you're not on a level playing field with the Coop and J. August," he said.

Harvard nets about $500,000 a year from these royalties, and Calixto noted that the proceeds go directly to the financial aid office. But because of Harvard's need-based financial aid system, the money does not affect the size of individual students' grants.

Calixto also noted that other student groups have requested--and been denied--the ability to sell apparel with the Harvard trademark to third parties.

Calixto said he did not buy the notion that HSA should not be held to the same standard as other apparel retailers simply because of their student group status.

"They're supposed to be teaching students what it's like in the real world. In the real world, you pay royalties," he said.

In the past year, the trademark office has become increasingly vigilant about the use of the Harvard name, even approaching student groups such as The Lampoon and The Harvard Law Review, requesting that they sign their names over to the University.

In return, the trademark office offers to license the group's name back to it free of charge.

Though the ownership of a group's name gives Harvard extensive powers, the trademark office has said its intentions are entirely benign.

Calixto says his office's efforts with student groups pale in comparison to its interactions with manufacturers around the globe.

"We have the strictest licensing in the nation," Calixto said. "We need to control manufacturers, keep stuff out of flea markets."

Although Calixto has not set a precise timetable for when HSA must start paying royalties, he did not think that HSA would refuse to pay up.

"Since it's our mark, we can say, 'You can't sell it,'" he said. "HSA can't just exploit the Harvard trademark without some impunity."