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Mass markets (such as Target, K-Mart, Wal-Mart), start as low as 3-5%. Brand and character licensing can go as high as 15%.Ģ) Where it’s sold determines the percentage as well. Art Licensing is usually a royalty range of 3-10%. How often do you go into multiple production runs?ġ) The type of products sold determines the industry standard percentage for that product range.How big is your first production print run?.What are the wholesale prices of your products?.What products does your company produce?.I call these questions “The Five Questions,” and anyone I ever speak to about licensing, I tell, “As a Licensor you must get the answers to these five questions from the Licensee before you can proceed to even considering signing any licensing deal:” When a company wants my work, I’ve always consideredthe Handbook a great starting point with which to begin the pricing conversation.Īside from the Handbook, the figuring of a royalty percentage and advance rate- and the amount of each- is based on asking some very important questions of the potential Licensee. The Graphic Artists Guild Handbook: Pricing & Ethical Guidelines (the Handbook) can help you determine the basic parameters of pricing. There are industry standards for advances and royalties. In those cases, the percent may be calculated with partial wholesale as well as retail sales figures. The royalty rate is usually figured on the wholesale sales of the product, unless of course the company maintains retail locations or a Web presence with retail sales. A successful partnership of Licensor and Licensee is that the contract is mutually beneficial to both parties. Then, of course, there’s all the other legal hooha boilerplate terms to support that we’re each gonna do what we say we’re gonna do, who’s accountable and how if we don’t, and what state rules if we have to go to court and such.įor the artist, the main objective of any licensing agreement is to receive a fair and sizeable advance and a great royalty percentage. How do I get outta this deal if I want to?.How much are ya gonna pay me in advance and in royalties?.The terms of an agreement in a nutshell are: The complex “Licensing Agreement” basically gets down to what I call “your stuff on their stuff.” Licensing Art BasicsĪrt Licensing entails any creative image that is contractually licensed to appear on any manufactured product or entertainment vehicle. Licensees are “them”-the client, the company, the product manufacturer, the entertainment provider, and the middle man between us and the retailer who provides the public with our work on either products or entertainment content. We may have signed a contract with a licensing agent or rep to act on our behalf and they can negotiate contracts for us, but we still have the end word on accepting the final contract. Our work is our intellectual property, and we alone hold the right to grant the use of our images on products. Licensors are “us”-the creative image makers, the holders of Intellectual Property (IP), our licensable images. So here’s the breakdown of “Licensor” vs “Licensee.” Was I the Licensor or the Licensee? And, all the legalese in contracts mystified me too, until I took contract classes at the New York Graphic Artists Guild to understand the big mystery behind a licensing contract. I swear it took me years to get straight which one I was. So, in addition to all your other possible titles-designer, illustrator, cartoonist, painter, photographer, etc.-you now can add “Licensor.” We all get way too caught up in our titles when it comes to art. I’ve joined the ranks of Art Licensors and so can you. From edgy to sweet and everything in between, all styles have a home on products. Art licensing is growing everyday with a variety of products focused on brands, and identifiable artists being collected by name and style.Īrt Licensing isn’t just relegated to those in the group of “Top 100 Licensors,” such as Mary Engelbreit, Paul Brent, Flavia, and even Jim Benton of Happy Bunny™ fame who beat them all out to win “#1 Top Art Licensor” at the 2005 Licensing Show in New York. Licensing is a 70 billion dollar industry and “Art Licensing” makes up 10% of all licensing.
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