"It was the right time and the right niche," said Zan Meter. "We first introduced them through the Nordstroms stores on the West Coast. It was a non-traditional place for college merchandise to appear...and it was wildly successful," she says. "There is a market for college merchandise other than students and alumni, a market that likes to wear Harvard merchandise. It's a prestigious place."

While sportswear may be the mainstay of most licensing programs, other manufacturers have more specialized wares to hawk. "Pencils, key chains, caps, drinking glasses," says Struss. "You name it, they'll make it."

In fact, the first license issued by Harvard under its new program went to a small company with a product even more out of the mainstream. College Campus Prints, a company in Hyannisport, sells prints of a painting of Harvard which they commissioned.

Squabbling in the Square

While licensing money may make Harvard administrators smile, things are not so cheery across Mass. Ave. In the months since the University announced its plan to charge royalties, a controversy has erupted over whether certain local stores should be exempted from the fee.

Tragos says he believes that Harvard Square merchants should not have to pay the royalty.

"What's really significant is whether Harvard should exact a royalty fee...causing a 15 to 20 percent increase in prices at what students are going to have to pay."

Tragos adds that since Harvard products are now available "in every suburban shopping mall," there should be an incentive to come to Harvard Square. "Business is bad in Harvard Square. There's no parking. All the merchants had a terrible winter. Why do they need to raise prices?" Tragos asks.

The University is also being criticized by the Coop, which contends that it should be exempt from the fee as well, citing its close relationship to the University. Coop President James R. Argeros did not respond to telephone calls from the Crimson.

But other merchants say that Harvard is justified in charging royalties. Corcoran says that Cambridge merchants do not merit special treatment.

"I don't see why because we're located in Harvard Square that makes us more special than someone in Boston or someone on the West Coast," Corcoran says.

"It defeats the purpose to eliminate the Coop, J. August and ourselves," says Corcoran. "We've had a free ride. Now [the University] has chosen to do what their sister and brother schools do all over the country. It's a perfectly justifiable request."

Among the difficulties that will face officials if they decide to grant any exemptions is how to administer them. Royalties are assessed at the manufacturer level and are passed on to retailers by their suppliers.

Although Yale University currently forbids manufacturers from charging New Haven stores the extra fee, administrators fear that not all are abiding by this policy.

"My suspicion is that they've been charging the same prices," says Sharon B. Wilson, associate secretary for Yale University. "The original idea was that by not paying a royalty, local merchants could offer products more cheaply, but that's not what happened."