The National Pork Board announced during the National Pork Industry Forum that it has agreed to terms to acquire ownership of the Pork. The Other White Meat trademark from the National Pork Producers Council. The terms have been approved by the USDA contingent upon final approval of the contract.
The National Pork Board has been licensing the right to use the popular trademark, which was created by the NPPC in 1985, prior to the formation of the National Pork Board and the creation of the national Pork Checkoff in 1986. In 2000, a Northwestern University study found that Pork. The Other White Meat was one of the five most recognizable taglines in American advertising.
This is a significant agreement because it is important that Americaâ€™s 70,000 pork producers own one of the industryâ€™s most valuable assets, National Pork Board President Danita Rodibaugh told delegates. "As the National Pork Board embarks on its new Donâ€™t be blah marketing campaign to extend the reach of pork among American consumers, it is essential that the National Pork Board own Pork. The Other White Meat."
The proposed terms of the agreement call for the National Pork Board to make annual payments of $3 million to the NPPC for 20 years. Sound business practices including appraisals and the cost of replacing Pork. The Other White Meat were used to help determine the purchase price.
The agreement also protects the checkoff organizationâ€™s ability to pay for the trademark.Because the National Pork Boardâ€™s only source of income is the Pork Checkoff, the agreement specifies that if the organizationâ€™s ability to pay is diminished because of a checkoff rate reduction or some other cause that the purchase agreement will be suspended, the equity will be preserved and the final three years of the existing licensing agreement will be reinstated.
This would give the Pork Board and the NPPC three years to negotiate new terms based on the boardâ€™s new financial position, or give the board time to transition to a new trademark and brand.
If the final contact is approved by USDA, payments to NPPC would begin on July 1.