# Setting up a royalty contract for artists. Help needed!



## savagecat45 (Jun 17, 2008)

Hello! I am trying to form out a basic contract for artists. We are a screen printing company that has set up a retail shop as a storefront. We're located by a university and just hosted a design contest. Before we move forward with any sort of printing/selling, I wanted to draft up a contract that lays out what the agreements are for the winning design. Here is what was in the terms and conditions (summarized) for the contest:

The two most important point to express on the contract: 
1. For every shirt sold, a royalty of $2.00 will be payed to the contest winner. 
2. The winner recieves $100.00 cash
3. Upon submittal, all rights to use the design for commercial uses are relieved to us, our company.


The 2nd place winner and 3rd place winner will be printed as well, under the conditions that every shirt sold will have a royalty payed to the artist at $2.00 per shirt sale. 

Thanks in advance!


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## uncletee (Feb 25, 2007)

up to you! just have them sign the contract.


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## rawbhaze (Jan 29, 2011)

You have already entered into a (several, actually) contract(s) because of rule 3. "Upon submittal" means just that and submissions have already been accepted.

The way that rule 3 is worded, you are obligated to give a commission to 1st-3rd but can freely sell 4th-Last without passing on a cent to the artists/submitters.

Any further paperwork should include when (per order/weekly/monthly/quarterly,etc.) and how the commission will be paid (option of a higher % in store credit, cash, check, etc.). The contract needs to state how long it is good for at said terms. The contract needs to outline who owns the copyright, to what extent the image may be used (i.e. products, in advertising, etc.), whether the image must be used "as is" or if it can be modified and any competition clauses.

I interpret rule 3 as stating that you are able to reproduce the image, "as is", for commercial purposes. The artist maintains the copyright and is able to shop the image to other businesses and/or produce himself for commercial purposes as well.


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