Technical support issues
Under the new International Trademark License Agreement, Sands China's annual payments are calculated based on Sands China's GGR and non-game revenue ratios, with a total payment of $377 million, with a cap of $114 million in 2023, $125 million in 2024 and $138 million in 2025.
The new contract comes after the termination of the current second trademark sublicense agreement, which is no longer valid .
In addition to Sands China, a number of subsidiaries will have access to the LVS brand, including Venetian Cotai Ltd., current Macao license holder Venetian Macao Ltd., Venetian Orient Ltd., and Cotai Strip Lot 2 Apartment Hotel (Macau) Ltd., which is responsible for apartment-hotel tower management for The Plaza Macao.
Members of the Sands China Group also grant licenses to use certain trademarks and service marks (a) of mainland China, Macau, Hong Kong and Taiwan for the design, development, construction, ownership, management, and/or operation of casinos or game zones (including casinos or game zones that form part of a hotel or integrated resort. And facilities like other facilities (b) where customers can gamble by playing games of luck or coincidence or other similar games [in this area].
Previous Annual Trademark Payments:
Sands China and its subsidiaries paid LVS $109.5 million in trademark rights during pre-COVID transactions .
When COVID-19 began, it paid $21.7 million, and the contract, which runs until December 31, paid $16.4 million for the first nine months .
A spokesperson for Sands China said, "Considering LVS grants the group a license to use certain trademarks and service marks, each license holder must pay LVS annual royalties at a rate of 1.5% of total non-game and game revenue.
"Total revenue is calculated in accordance with U.S. GAAP (generally accepted accounting principles) effective.
"The use of the LVS trademark is critical to the group's business success because it is a licensed trademark and service trademark that comes from an integral part of the group's corporate identity."
Sunday, February 11, 2024