Found this article on Licensing Contracts on the Daily News Blog
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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