Does Donald Trump's Branding Empire Go Too Far?

Billionaire real estate developer Donald Trump is considered one of the most successful tycoons in America, particularly when it comes to branding and self-promotion.

Trump coined the quip "YOU'RE FIRED" on his hit network television show The Apprentice, which he unsuccessfully tried to trademark.

But, according to New York's Attorney General Eric Schneiderman, Trump went too far when branding his "Trump University," and committed outright fraud on those who invested in attending the costly seminars.


FoxNews is reporting that the real estate mogul's "Trump University" duped students into paying as much as $35,000 to attend the 3-day seminar, but quickly discovered it was a sham.

"Trump University engaged in deception at every stage of consumers' advancement through costly programs and caused real financial harm," Schneiderman said. "Trump University, with Donald Trump's knowledge and participation, relied on Trump's name recognition and celebrity status to take advantage of consumers who believed in the Trump brand."


According to official court papers, Schneiderman is suing the program, as well as Trump personally as the university chairman, and the former president of the university, in New York State Supreme Court in Manhattan.  He accuses them each of engaging in persistent fraud, illegal and deceptive conduct and violating federal state consumer protection laws.  The $40 million the suit demands would be distributed as restitution to consumers.

New York State Education Department officials had ordered Trump to change the name of his enterprise years ago, saying it lacked an education license and didn't meet the legal definitions of a university.  In 2011 it was renamed the Trump Entrepreneur Initiative, but it has been repeatedly accused by consumers in several civil lawsuits of failing to fulfill its advertised claims.

True to form, Donald Trump shot back, denying the allegations and claiming the Attorney General's lawsuit is "politically motivated," and tantamount to "extortion."

Insane Clown Posse: Branding Geniuses or Violent Gang Subculture?

ICP Fans, image from InsaneClownPosse.com website

From both a musical and branding perspective, the Insane Clown Posse (often dubbed "ICP") are a bizarre phenomenon.

The ICP is a rap duo composed of Joseph Bruce and Joseph Utsler, who perform under the respective personas of the "wicked clowns" Violent J and Shaggy 2 Dope.

The duo performs a style of hardcore hip hop known as horrorcore known for its elaborate live performances.  The duo has earned two platinum and five gold albums.

ICP may be counter-cultural, but they are very brand-conscious, and have developed an incredibly dedicated following of fans surrounding their musical genre.  They are no strangers to successful merchandising, either.

Logo on Tote Bag ($10 on ICP website)

For example, the band adopted the "FAYGO" brand soft drink, by referencing the relatively unknown Detroit-based soda brand in several songs.  The group's fans are widely credited with supporting the company.

ICP's hardcore fans, dubbed "Juggalos," are such a dedicated and cohesive subculture that the FBI recently categorized them as organized criminals.

The FBI's 2011 National Gang Threat Assessment report identified Juggalos as a "hybrid gang" akin to violent groups like the Crips and Bloods.

But ICP is now fighting back for its beleaguered fans, by filing a civil lawsuit against the FBI for unlawful discrimination.

The lawsuit seeks to stop the FBI from "violat[ing] the rights of Juggalos on the mistaken belief that they are 'gang members,'" according to a statement posted on a new website, JuggalosFightBack.com.

Being labeled a "gang member" can result in much harsher penalties for certain crimes, according to the Justice Department’s National Gang Center.

To fight back, the Insane Clown Posse’s new website is offering a free legal review to any ICP fan who may have been profiled or harassed.  Fans can fill out a form online, for potential inclusion in the lawsuit.

“We’re not attacking the FBI, but they got this wrong,” Bruce said in a statement. “The Juggalos are not a gang, and that needs to be fixed."

The lawsuit is “probably the biggest announcement of our career,” the duo said via Twitter.  “Yes we’re nervious [sic].”

It seems that even wicked clowns are scared of litigation.

Supermodel Brand Builders -- It's In Their DNA

Celebrity supermodels possess a few lucky genetic advantages over most other brand-building entrepreneurs.

In addition to being born tall and gifted with extraordinarily good looks, supermodels are also household names that can easily be leveraged to become recognized consumer brands.

Gisele Bündchen, Cindy Crawford, Tyra Banks and Elle MacPherson all achieved their initial stardom by enduring years of traditional runway and print modeling. But these savvy businesswomen have also capitalized on their inherited genetic advantages to become successful entrepreneurs in their own right.

The legal vehicle that allows celebrity supermodels to extend their reach beyond their grasp can be as straightforward as the standard licensing agreement. 


The legal structure is relatively easy to construct:  The model or celebrity enters into a detailed contract with an agency having existing marketing and distribution channels that permits her name and persona to be associated with a product or line of products. 


The supermodel may additionally want to create her own individual company to own the brand itself. She may then choose to delegate many (or all) of the day-to-day responsibilities involving the management of the brand and collect agreed-upon royalties based on some measure of sales.


Alternatively, she may choose to take a "hands-on" approach, and be far more intimately involved in product design and marketing, and appear at promotional events and in television commercials. When successful, these arrangements can create opportunities to instantly exploit existing name (and face) recognition among consumers. 


For example, supermodel Cindy Crawford's line of furniture at Raymour & Flanigan branded as "Cindy Crawford HOME," has been a huge boon to that upstate New York-based furniture chain. Gisele Bündchen banked over $8 million a year from a sandal line called IPANEMA by Gisele. 

But supermodels aren't only interested in sofas and shoes. Supermodel and business titan Heidi Klum launched fruit candies called "Heidi's Fruit Flirtations" and "Heidi's Yogurt Dessert Cremes." The candies and cremes didn't fare as well as some of Klum's other business ventures, but the venture showed that the supermodel dares to explore brand expansions outside the norm. 


So what is the secret to their success? The key to the long-term success or failure of supermodel-related product lines may lie in the sincerity behind the endorsement itself. 


According to some experts, the trick to this game is aligning a model's individual personality with the right product. "If you've built enough of a persona around yourself, you can do well," says Ryan Schinman, chief executive of Platinum Rye, which represents corporations that partner with celebrities.  But "if you say, 'I'm a model, but I'm also a mom,' then you target moms. The DNA of your brand has to match up with the product," says Schinman. 


And some supermodels have entrepreneurial DNA that just cannot fail. According to Forbes, Kathy Ireland — who appeared on three Sports Illustrated covers and in 13 consecutive swimsuit issues during the 1980s and ’90s — is worth an estimated $300 to $350 million via her product marketing company, Kathy Ireland Worldwide. By way of comparison, mogul Martha Stewart’s holdings in Martha Stewart Living Omnimedia are valued somewhere in the vicinity of $250 million, whereas Ireland has sold an estimated $2 billion worth of retail products, with Stewart selling less than half of that ($900 million at retail). 


How did Ireland do it?  Forbes notes that the model has long since moved beyond her initial clothing line at Kmart, choosing to now license and sell everything from stylish jewelry, office furniture, windows, and mattresses to hair care, perfume, and shoes — and that doesn’t include her successful line of bridal dresses and fur coats.

Kate Middleton's Family Website Examined for Compliance by Olympics

 Screenshot of PartyPieces.co.uk

In a stark reminder of just how seriously brand protection is being taken by London Olympics officials, even the party products website managed by the family of Kate Middleton is being scrutinized to ensure compliance with extremely strict branding guidelines, according to Time magazine.

The Middleton family's website, PartyPieces.co.uk, is advertising party goods under the heading “Let the Games Begin” and even had a ring toss game in the Olympic colors.

An official on behalf of the London Organizing Committee of the Olympic Games (LOCOG) said of the Middleton's website: “There are no infringements and the products are fine.  We will ask them to make minor changes to some copy.’’

Olympic enforcement officers have begun patrolling venues throughout the UK to ensure traders are not illegally associating themselves with the games.

A LOCOG spokeswoman reportedly said: “We will act if there is a commercial tie-in in any way.  We will ring and explain the obligations and most times this dialogue is friendly, people are usually doing it to be part of the fun, but companies are not allowed to promote an association with the Games if they are not a sponsor.”