Bob Marley Reigns Supreme
Sources: Ayeola George, CNN.com

Music legend, Bob Marley, who died 28 years ago, is about to challenge Elvis Presley and Michael Jackson for the title of richest deceased celebrity.

Toronto-based private-equity firm Hilco Consumer Capital has struck a management deal with the Marley estate, expected to generate annual sales in excess of $1 billion by 2012. That seems like a huge number, but by some estimates the Marley name, sound, and image already generate as much as $600 million in pirated merchandise.

Major licensing agreements for the Marley brand will launch in two key areas: consumer electronics -- including headphones and docking stations, and health; skin-care products and herbal supplements. Also in the works, according to Hilco, are deals for a Marley-branded calming beverage, a video game similar to Guitar Hero featuring Marley's songs, and a chain of restaurants celebrating the music superstar.

Could this be commercial overkill for the Rastafarian whose spiritual songs about social injustice, hope, and redemption have become anthems for billions of fans worldwide? "This is not just about money," says Jamie Salter, Hilco's chief executive. "We have to believe in the people and products we partner with." Salter adds that the Marley estate will have final say on all business ventures, and that charities will figure into the overall mix of Marley branding.

Licensing of deceased celebrities is an industry that has exploded in the last decade, thanks in large part to the proliferation of online media devoted to their memory. Typically, an estate receives 10% to 15% of gross proceeds from a licensing deal, which in this case will be divided between Hilco and the Marley family. The legend who created reggae hits like "One Love" and "No Woman, No Cry," fathered a total of 13 children, some out of wedlock, and it's not clear how many are included in the estate.

Salter declined to explain how proceeds will be divided between his management company -- which also has an equity stake in a number of high-profile brands, including Polaroid, Sharper Image, and fashion label Halston. However, at a conservative 10%, licensing fees from $1 billion in annual sales should pull in about $100 million for Hilco and the Marleys. That tops the latest figures reported for Presley ($55 million), John Lennon ($15 million), and Jimi Hendrix ($8 million). Michael Jackson -- who is worth more dead than alive with an estimated $90 million in earnings in the last 12 months -- appears to be Marley's nearest rival.

But the danger of operating the Marley marketing machine in overdrive is that it could irreparably harm the natural mystic's image. Some brand experts now view Elvis as more of a caricature than icon as a result of overexposure. For Sanjay Sood, director of the Entertainment & Media Management Institute at UCLA, there's one question to ask: If Marley were alive today, would he want his name associated with a particular product? "says Sood. Recently, Lennon's widow Yoko Ono has licensed her husband's song "Real Love" to be used by JC Penny (JCP, Fortune 500) in television ads, and she's given Ben & Jerry's ice cream permission to release a Lennon-inspired flavor called "Imagine Whirled Peace." Salter of Hilco says the Marley brand has a long way to go before reaching saturation.