Pandora Trollbeads Royalty Issue is Concluded

This jewellery blog article announces the resolution of the ongoing legal dispute between Pandora and Trollbeads over royalty fees and hopes to offer clarification on the situation to collectors.

Last week saw the resolution of a long standing legal dispute between Trollbeads and Pandora relating to the intellectual property of murano glass beads. This morning Trollbeads took the interesting decision to announce the conclusion via their Facebook page. With this in mind and due to the speculation arising from fans who were unaware of any dispute, I’ve decided to offer my own summary of events.

Most readers will be aware of the fact that Trollbeads are the original bead brand. As is always the case with a new product that proves popular, they were fated to see other brands offer their own take on the concept. While a plethora of brands are now represented within this market, the initial competitor was Pandora.

Trollbeads Elderflowers

Please Do Not Reproduce Without Crediting

Pandora and Trollbeads Agreement Related to Glass Bead Production

In Pandora’s early days, they lacked the knowledge, expertise and skill to offer the glass or murano charms. Trollbeads have always been famed for their amazing glass work and Pandora approached Trollbeads for help with the production of this style of beads. The Trollbeads CEO at the time, Lise Aagaard agreed to this and a royalty agreement was drawn up between the two brands. This ensured Lise Aagaard received ongoing payments for designs offered to Pandora.

There have been various rumours regarding this contract over the last few years, none of which I’m willing to speculate on as it would be precisely that; speculation.

On the 15th of March, Pandora announced it would pay Trollbeads a one off sum of 190 million DKK to secure ongoing intellectual property rights to the glass bead designs. This replaces the previous royalty scheme.

Fable Trading, the UK distributor of Trollbeads has also made a statement reassuring UK retailers that this deal does not affect the future of the Trollbeads brand in any way. This is specifically related to old bead designs dating back to Pandora’s infancy rather than having any influence over new designs.

For those interested in the official statement from Trollbeads, you can read this below:-

Dear all,

Many of you have contacted us about the new agreement between Trollbeads and Pandora.
Several years ago Lise Aagaard entered into an agreement with Pandora related to guidance and the design of selected glass beads. For that Trollbeads has received royalty payments up until now.

In the new agreement, a one-time payment of DKK 190 million replaces the previous royalty agreement. This change has no impact on Trollbeads’ current and future business whatsoever.

Trollbeads is the original bead jewellery brand, and we will continue creating unique and highly individual bead designs exclusive to our brand.

Thank you for caring… πŸ™‚

Trollbeads Easter Egg Pendants

Please Do Not Reproduce Without Crediting

Comments
  1. Carrie

    Hi! I’m a long-time reader, but this is my first time commenting.

    Hmm, I’ve never even heard of a legal dispute between Trollbeads & Pandora. I know you said that this settlement won’t effect Trollbeads, but how will it effect Pandora? Pandora was getting help from Lise Aagaard/Trollbeads to design & make their murano charms in the beginning, but now it seems that they’re on their own (that’s how I interpreted this anyways), what does this mean for Pandora’s glass-making future?

    • endangeredtrolls

      Hi Carrie,

      Welcome to my blog πŸ™‚

      It won’t have any influence over either brand. This specifically relates to designs going back to Pandora’s infancy when they first started making charms. The brand launched their charm bracelet concept in Denmark back in the year 2000 and it’s around this time the royalties relate to – so very early designs!

      Pandora now have their own in house designers and it won’t influence their future charms in any way πŸ™‚

      Fear not, both brands are absolutely fine but this is precisely why I opted to write this article πŸ˜€

      Kind Regards
      Victoria

  2. Angela

    Victoria,
    Adding my two cents,this one time payment will conclude the royalties that Pandora pays Troll. If Pandora were to continue making the style/pattern of glass beads that Lisa had helped them to make then they would still be paying.

    As it is Pandora has retired most of those first patterns,they are no longer being produced and they can prove to all that there is little or no income being generated from those patterns…

    Based on some articles posted here Pandora has stepped up their glass presentation.. Trollbeads is the original, but IMO they fell behind in the Silver charm world. Possibly lack of vision or understanding of how popular charms could become. if properly managed and marketed. However and again IMO to improve or maintain their market share they must maintain their number 1 position in the glass world and be more innovative with the silver if not they will slip further behind.

    Speaking of Marketing, just heard the Pandora free bracelet promo by Jared on the Radio , it is being played every 30 mins during 11-3pm and every 15 mins from 12-2pm plus drive times in the morning and afternoon…Trollbeads retailers never run any such promos.I LOVE Trollbeads but their rinkey dink backwards marketing strategy really ticks me off, If they are not excited innovative and telling everyone about their product who should be? When they released the Mother’s Day and Spring Summer line where were their ad buys,no magazine ads,nothing.. it was like a great big tree falling in the forest and no one was around to hear or see it, besides us die hard Troll fans who knew or saw the release.

    • endangeredtrolls

      Hi Angela πŸ™‚

      All interesting points…

      You’re correct regarding the Pandora designs. This relates to charms right back when Pandora first began manufacturing in the early 2000s. Pandora have been self sufficient for a long time now and this is tying up loose ends so to speak.

      I think for the longest time, Pandora’s glass was terrible. They were very samey, often pastel colours and there were never very many. Indeed it was the choice of glass that attracted me to Trollbeads (and I suspect this has occurred for many.) Pandora aren’t stupid and they know that Trollbeads are famed for their glass designs. It would make sense therefore, for them to up their quality and choice in this area.

      In regards to Trollbeads.. I think they’re in a slightly awkward position. They have a percentage of fans that have been with them since the start and want the same “old” style Trollbeads silvers. On the other hand, they’re trying to attract “new” fans, many of which may already by Pandora collectors, and to do this, they have got to produce silver charms that appeal to them also. The issue is that I think they’re then spreading themselves too thinly almost and Trollbeads fans tend to be very vocal. When they try new styles of designs, older collectors often dislike them. On the other hand Trollbeads need a larger market share and more brand awareness in the USA. While marketing is undoubtedly an issue, I also suspect that something about their collection just isn’t working in the USA.

      I do agree with you about their marketing. Trollbeads have always been adamant that they aren’t like Pandora. They’ve been quoted as saying they don’t want to take over the world and as such, don’t find such aggressive marketing necessary. Yet clearly they’re wanting new collectors.. they’ve placed their product in Bed, Bath and Beyond with the justification of wanting new collectors. So which is it? Either they’re happy as they are and don’t feel the need to expand. Or they aren’t happy as they are and do. I always feel like there are mixed signals coming from the brand.

      Pandora are very secure in who they are. They have a strong sense of brand identity. I love Trollbeads but I don’t think they necessarily have this. I think Lise and the original family members involved with the brand had a strong vision of what they wanted with so many designs rooted in fantasy but then the brand grew and new people came in and it grew more and now there’s something a little disjointed between the original vision and the need to take the product to a more mass market appeal.

      Oh Angela, I do cherish our marketing discussions and your insight is invaluable! Thank you as always πŸ™‚

    • Ashley

      Angela, I 100% agree with you that TB’s doesn’t seem to have a good enough supply of silver charms. But they make up for that by doing such amazingly beautiful work with there Murano charms. Hopefully, TB will catch up quickly when it comes to there silver, in my opinion. πŸ˜‰

      • endangeredtrolls

        I always find it fascinating that what some people love, puts others off. Many Trollbeads collectors will vehemently argue that the standard of Trollbeads silvers far outweighs other brands (with the exception perhaps of Redbalifrog.) Yet quite obviously many of my more ardent Pandora fans just simply do not like them! The reason I find this interesting is that it seems to have been a common belief among some of the older Trollbeads collectors that Pandora’s popularity is solely due to it being the more visible brand and that if some Pandora fans actually encountered Trollbeads, they’d be instantly converted. Quite obviously this isn’t always the case at all.

        Do you ladies think the detail is lacking or is it the styling that you don’t like? I really love to hear what it is about your favourite brands that keep you returning and spending such large amounts of money.

        Kind Regards
        Victoria

  3. Debbie

    Thanks for the info on this Victoria. I was aware of Trollbeads assisting Pandora in the early days with glass design, but I didn’t know the royalties were ongoing. Not sure what Pandora got for their money as their glass (whilst improving) historically has been poor in my view!

    Interesting comments on the marketing strategies of Pandora and Trollbeads. I guess now that Pandora have floated they have shareholders to answer to, whereas I think Trollbeads is still family owned? Pandora’s marketing to me can be a little too heavy handed, but I do agree that Trollbeads might benefit from a greater focus on marketing / positive press opportunities.

    • endangeredtrolls

      There have been all kinds of rumours over the last few years surrounding this ongoing royalties issue. I heard Pandora opened a new court case trying to avoid paying further royalties and all sorts but honestly, I’ve no idea what is rumour and what is fact. That’s why, I’ve never really mentioned much here about the issue – I don’t want to spread false information – particularly if it related to a legal case!

      I think you’re right. I think Pandora are a little over the top and Trollbeads are at the opposite end of the scale. You are correct about Trollbeads still being family owned however – which I actually love. Many of the family are actively involved in either design or management πŸ™‚

  4. Debbie

    Hi Victoria and everyone,

    On the question about Trollbeads silvers, I think they are just very different to Pandora, and I can completely understand why some TB collectors dislike Pandora, and vice versa.

    I am not sure that Trollbeads do need to overhaul their silvers, but that’s just my opinion.

    Your blog has shown us via your photos of bracelets that all the brands co-exist quite happily, and can and do look fantastic together πŸ™‚

    Because I like to mix and match I’m happy with the range of silvers across the brands I collect, and between them they satisfy all my charm addiction needs πŸ™‚ All the brands have things that I like, and equally they have the “what an earth are they selling that for?” pieces! I think there will be very few collectors who will love and own every single charm from a specific brand.

    I liked a lot of the Trollbeads spring release, sadly I liked the Pandora more this time round, so I’ve bought Pandora and not Trollbeads.

    Last year I bought more Trollbeads and less Pandora because I thought the Trollbeads silvers were nicer.

    It’s such a competitive and crowded market. There are always going to be die-hard fans on each side who dislike the other brand – and I don’t think Trollbeads doing lots of advertising and brand awareness would convert that many die-hard Pandora fans.

    For those of us who like to mix and match, I really value and enjoy the different designs that each brand offers πŸ™‚

    • endangeredtrolls

      Isn’t it interesting how some collections appeal more than others even to those of us who collect multiple brands?

      I liked the Pandora spring release more than I thought I would. The fairy tale charms are lovely and oddly, I like the Cherry Blossom Clips. I actually keep forgetting just how much I like the spring release, because I’m so excited about the summer collection!

      Much like you I suspect Debbie, I use the different brands depending on the bracelet I’m aiming for. If I want something pretty and girly, I often opt for Pandora. If I’m making something fantastical, then Trollbeads and Redbalifrog have been a traditional go to. For me it all depends on the mood, the outfit and the theme.

  5. Debbie

    I totally agree Victoria, and that’s why I like collecting different brands so much. They do say variety is the spice of life πŸ˜‰

    Is it just me, or have the Spring releases from all brands been especially good this year?

    It’s so unfair to have to budget πŸ™ Do you think if we rub Amanda’s fantastic lamp a genie will jump out and grant us three wishes? πŸ˜‰ One wish of course would be a bead fund that magically always stays in credit however much I spend πŸ™‚

    • endangeredtrolls

      It has been a very good spring for us certainly – though as you say, it makes it difficult to budget πŸ™

      While many of the brands focus purely on autumn and spring releases, we of course have the Pandora summer collection and undoubtedly multiple mini releases from Trollbeads in the coming months (oh and not to mention Noosa!) I think the Story and Lovelnks spring releases are about the last for me (in terms of the brands I cover). Oh I lie – Novobeads have yet to unveil their spring collection!

Post A Comment

Your email address will not be published. Required fields are marked *