How to protect your assets in a licensing agreement

Found this article on Licensing Contracts on the Daily News Blog

Excerpt:
As fun and exciting as Art Licensing is, there are some things you should know before entering into any contractual agreement. First of all, there is a lot that you won’t know in the beginning of your licensing career and a ton that you will learn along the way, but you should have a good understanding of what the terms of your agreement will be before signing anything. If you are presented with a licensing contract - review it and understand that you are the one licensing the art and you have the power to negotiate your terms. Also, it’s always a good idea to have your own copyright attorney review the contract.
Before we discuss this topic further let's get familiar with a few terms, that is if you are not already familiar with them.

1. Licensor - You! 2. Licensee - the company you are licensing artwork to. 3. Royalty - The percentage you will be payed on the sales of your art. 4. Net Sales Price - the price for which the Licensee sells the Licensed Products 5. Licensed Design - shall mean those designs owned by Licensor and incorporated into one or more Licensed Products 6. Sell-off-period - A period of time used by the Licensee to clear out licensed product. This usually takes place at the end of a contract when the licensee needs to dispose of all of its existing inventory of Licensed Products on hand. During the Sell-off Period, no royalties shall be payable to Licensor for the sale of Licensed Products that must be liquidated (sold at or below cost).

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