In art licensing, a license agreement, or contract, is a written agreement between the Licensor (artist or property owner) and Licensee (manufacturer) where the Licensor gives permission for the Licensee to use their design(s) for a specific period of time, in a specific geographical area on specific products. The way artists make a living in art licensing is by creating art that will appeal to multiple manufacturers for use on their products.
If an artist (presumably you) only licensed their images to one company, how well-crafted the contract is wouldn’t matter very much. But when your intention to have the same art used for multiple products, you need a level of skill and organization when it comes to the contracts.
To build a profitable art licensing business, it is good to understand the goals of each side of the equation so you become a fair and effective contract negotiator. The best deals are the ones where both parties leave thinking they got the best deal. Understanding what each side wants to accomplish can help make that happen.
The Licensor’s Perspective
We will start with the easy side of the equation which is the one you will understand the most – your side. You are the Licensor. You create art and hope to earn a living by licensing your designs to manufacturers. You want to be paid fairly. You might also want to build your name and/or brand recognition and you want to do what you love – create art! You don’t want people to steal your art and use it without your permission. You probably don’t want to be sued if someone falls and breaks their arm and decides to blame you because your art is on their skateboard. Basically, you want a fair deal and you don’t want to feel as if you are being taken advantage of. True?
The Licensee’s Perspective
Now it is time to put yourself in the other person’s shoes – let’s take a look at the goals of the manufacturer. The manufacturer produces and sells products into a competitive environment. It doesn’t matter what the product is; I can guarantee you there is competition. They are focused on sales and growth. What can they do to make their product better? How can they differentiate themselves from the competition and increase their sales?
One way to stand out is to have art on their product that is unique in the marketplace. Many companies choose to license art for this purpose – these are the manufacturers you want to become best friends with!
When a manufacturer licenses art, they look for many things, and those things may vary from company to company. Some basic universals include quality art that will appeal to their target market. Generally they want to be the only manufacturer offering that particular art. While anyone can put red and white polka dots on a product, not everyone can put your unique [insert art description here] design on their product. Only the company that you license the rights to can do that – and they hope that will give them a competitive advantage.
Manufacturers are also looking for something that will make the consumer open their wallets. Take coffee mugs for example. Unless you have just left your mother’s house and she didn’t send you off with a supply of basics, I bet every home has enough coffee mugs to last for years. So why are there always so many coffee mugs available for sale? Because retailers know that if a mug has the right art, message, or color combination on it to attract a shopper, they will buy it. This can hold true for just about anything.
When you are reviewing and negotiating a contract with a new company, it is good to understand what they hope to achieve by licensing your art. That way you can figure out how to make the contract a win-win for both of you. When things work well – the products featuring your art sell well and everyone makes money!
Learn to represent yourself with confidence and understand how to negotiate a win-win contract. The 173 page eBook covers the sections of an art licensing contract and what they mean to you, how your goals affect your contracts and much, much more.
Visit ArtLicensingInfo.com/contracts.html to learn more about the eBook today!