# What are the standard licensing fees?



## Eccentric Life (Mar 6, 2008)

Hi,

I'm looking at using some new artists artwork for t-shirts and hoodies. I want this to be under 'license' from the artist so I would assume they would take a percentage of the sale??

Would this normally be a share of the total sale price, a share of overall profit or a fixed fee per t-shirt?

Has anyone had experience of this kind of deal and what sort fees are common??


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## charles95405 (Feb 1, 2007)

there is no standard...it is based upon 'willing buyer - willing seller' concept


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## SickPuppy (Aug 10, 2009)

Just purchase the rights to the artwork up front. You don't want to track sales and calculate a percentage for each artist you use. If you pay for the artwork it belongs to you.


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## Zenergy (Apr 14, 2011)

I'm working on the opposite approach, SickPuppy - I've got an agreement with my artists that pays 20% of the profit on each sale. Tracking it is no big deal - I just assign each shirt an artist code and whenever a sale is made it tallys it up and I can send out checks monthly. I like it because it really encourages my artists to go all out on the designs, and I only have to pay them when a sale is made.


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## SickPuppy (Aug 10, 2009)

Zenergy said:


> I'm working on the opposite approach, SickPuppy - I've got an agreement with my artists that pays 20% of the profit on each sale. Tracking it is no big deal - I just assign each shirt an artist code and whenever a sale is made it tallys it up and I can send out checks monthly. I like it because it really encourages my artists to go all out on the designs, and I only have to pay them when a sale is made.


The problem with your approach is you do not have exclusive rights to the design and the artist is free to sell the rights to anyone.

By contracting the work it becomes your property. I do the same thing with computer programs we have developed. The programs become my property and I own exclusive rights to them. I can then sell licenses to other users.


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## GN (Aug 1, 2011)

SickPuppy said:


> The problem with your approach is you do not have exclusive rights to the design and the artist is free to sell the rights to anyone.
> 
> By contracting the work it becomes your property. I do the same thing with computer programs we have developed. The programs become my property and I own exclusive rights to them. I can then sell licenses to other users.


Well that's all fine and dandy if you have the $$ upfront to pay for the designs but if you don't or if you don't want to risk the possible loss then this is the viable alternative.

As far as the OP, I'm thinking 1-2% of NET profits with a guranteed minimum would be ideal from an Owner's perspective. But.. I'm new to the arena and don't usually play by the rules.


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## JOHNSY (Dec 20, 2010)

I just took on another artist last week for the next branch of my line.I did the first set and to start i am giving him a direction asking for x amount of sketches picking x of the set having him tighten those selected and purchasing those outright. this allows me to release them when im ready to, this way there is no mystery and no question of how many sales did I do, let me see the books etc that you will run into with consigning art. as his work and involvement progresses i may put him on a consignment basis. so my personal suggestion is keep the relationship simple. before i started printing I would do art for others and do outright purchase basis.


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## Eccentric Life (Mar 6, 2008)

Thanks for all your in thoughts. Sickpuppy, the problem is I cant pay for these designs up front for two reasons. One they are graffiti artists and there work is already in public domain. And secondly they are too big names in their own right, paying for the exclusive rights would cost a fortune! They sell their own prints and artwork but not t-shirts/clothing.

Also I'm not bothered if they want to go elsewhwere. Once they initially sign up with me I'm pretty confident they won't leave.

Zenergy, I was thinking along the lines of 20% profit but as a sweetner maybe an upfront fee of £200-£300.

Thanks again, it's nice to hear other peoples experiences.


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## Zenergy (Apr 14, 2011)

Eccentric Life said:


> Thanks for all your in thoughts. Sickpuppy, the problem is I cant pay for these designs up front for two reasons. One they are graffiti artists and there work is already in public domain. And secondly they are too big names in their own right, paying for the exclusive rights would cost a fortune! They sell their own prints and artwork but not t-shirts/clothing.
> 
> Also I'm not bothered if they want to go elsewhwere. Once they initially sign up with me I'm pretty confident they won't leave.
> 
> ...


Wow, you're nicer than me - I wouldn't go over a straight 20% to start.

I don't really care if one of my artists decides to sell elsewhere. There are a million talented designers that are eager to work with a printer who can get their art out without them investing any money in it. I don't intend to sell any design for more than a few months anyway unless it does really well, in which case I'll pay a bonus.


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