# has anyone sold their design to a conpany for royalties?



## sofakinggood (Dec 5, 2005)

hi,

I have a design created for football clubs t shirt merchandise in mind. I wish approach all the football clubs in australia league with my design (as it can be used by each club as they just put the club colors on the player in the design) but i am unsure what route to take. 

Should i offer each club a license to use and print the design in there club colors. In this case i would charge a fee for them to buy the rights to use the design.

Or i is it better to offer a license to all clubs and get royalties of each sale of the t shirt with the design?

Has anyone approached companies with either of these scenarios? What is your advice? is it prudent to send each club a letter of invitation from your lawyer so as to deter them coping or imitating a similar design in the future?

would be greatful to hear all opinions.

cheers

adie


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## mrshadow (Apr 3, 2008)

Ohhh man, this is what I`ve been looking for 
I have some project ideas too and trying to contact with the companies but they ARE NOT answering any e-mail  or something


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## MotoskinGraphix (Apr 28, 2006)

Off the top of my head wouldnt each club want a club specific design and not the same design in different colors?


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## sofakinggood (Dec 5, 2005)

MotoskinGraphix said:


> Off the top of my head wouldnt each club want a club specific design and not the same design in different colors?


not for this one, its very unique and has not been done before...sorry i can explain more at this stage but would be greatful for assistance with the query regardless of what the design is.

cheers
a


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## trend (Jun 4, 2008)

typically you should get a 5% royalty



sofakinggood said:


> not for this one, its very unique and has not been done before...sorry i can explain more at this stage but would be greatful for assistance with the query regardless of what the design is.
> 
> cheers
> a


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## trend (Jun 4, 2008)

trend said:


> typically you should get a 5% royalty


How to Write a Contract for a Desktop Publishing or Graphic Design Business
good article for you to read


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## trend (Jun 4, 2008)

Here is some info that may help. copied from a previous post that i have used...

ART SERVICE CONTRACT

DATE: 02-05-2005
Creator –__________________
Marketer/Manufacture –__________________ 

(ITEM “A”) Description:
Design number/name/description. ___________________________
Category
Minimum projected annual units/sale of this design: ______________

This document shall be deemed as a legally binding contract between
Marketer/Manufacture: 
Art Creator: 


(ITEM “B”) Explanation:

Type of medium/product types: Printed Textiles.

Category of use: Wholesale and “direct Retail sales” described as being sold by Marketer/Manufacture and acting as the retailor to sell this design/product direct to the public.

Geographic area of use:
(World /Global sales). 5% royalty in US currency.)

Duration of use: 3 years from the date of signing this contract.










Third Party Licensing: This contract is not transferable to a third party company or person for any reason without both parties being in agreement. (If Marketer/Manufacturer cannot meet production to meet the scheduled production of purchasing contracts/ sales in a timely fashion, a modified agreement can be made with outside parties and will documented as sub contract work. It shall be the duty of Marketer/Manufacturer to see to it that all contract obligations are held up by any third party production facility. This shall be in the form of a secondary contract between the two parties (herein) and the additional third party. The secondary (third party) contract shall not supersede the original contract. All third parties shall also be subject to quartly invoice/sales/units reviews per design.


Note on sale of Rights and sale of Original Art: 
Many buyers are surprised to discover that sale of the Original piece of art
is, by law, separate from the sale or transfer of usage rights and should be
handled as a separate issue, in both directions. You can buy all the right to
reproduce a piece of art without buying the art, but buying the original art
does not automatically transfer any reproduction rights to you.

Ownership of Original art: I __________________________ retain the full and complete copyright to the original art.

NO ASSERTION OF RIGHTS:
It is expressly understood and agreed that, except for licenses granted to____________________under this agreement, as between creator
___________________ and _________________ all right, tittle, and interest in and to Licensed digital files vest solely and exclusively in the creator
____________________________


REPRODUCTION LICENSE granted:Marketer/Manufacture__________________
has a license to produce and sell unlimited quantities of units or programs (groupings of multible designs sold as a set) within the three year contract.

A license to produce art on textiles__________________________ also grant rights to produce this art on other products with the knowledge that the royalty compensation shall be applied to the sales of any and all products. 

The creator __________________________ will be informed of intent to apply this design on any product.
Creator –__________________ maintains the right to disapprove or approve the use of the art or reproduction of art on a product Creator - _________________deems inappropriate for the art. Approval must be given via signature and date (before art application/samples begins on a product).

Exclusivity: With these rights, I Creator –__________________ agree not to sell the design /reproduction rights it to other companies for the purpose of producing it on other products during the life of the contract (for instance) a greeting card, or mouse pad or puzzle, or book cover for the duration of this contract. Creator –__________________ maintains the ownership and right to use said art to promote . Creator –__________________ in any media format available, such as (but not limited to) Personal portfolio/articles/website/print while said contract is in effect.



Payment/Compensation: Royalty. Payment shall be in the form of a royalty in the amount of (5%) percent of wholesale price and 5% of the retail price (if selling direct to end user i.e. retail sales).

12 Royalty free samples per year during the contract shall be approved for
initial sales and samples. All samples over and above the initial 12 units
shall be billable for Royalty’s at the wholesale or retail price.

Sample approval:
Shall be required by Creator –__________________



Kill Fee:
A Kill fee or (cancellation) – payment made when the art requested meets
the satisfaction of the clients stated requirements but the client decides not to
use it for reasons outside the artist control or not due to any fault of my own,
This fee will be due Within 15 days of notice of cancellation of each
design/contract and shall be equal to 30% of the
bare minimum fair market value of said design, (per design) being a
minimum of $1000.00. Total due “per design” upon cancellation will be
$300.00 Any design killed will loose all rights for reproduction at any time
and no rights will be transferred. If a design is completed for production but
is not active in sales as a result of
Marketer/Manufacture –not actively and agressivly
pursuing sales or has not made a sale (totaling or in excess of 144 units) for
the first 6 months from the date of contract, the design is to be considered
killed/cancelled and the kill fee shall apply.




Payment Schedule:
Shall be due each (90 days) or per quarter of each year for the life of the
contract. A statement will accompany each quarter payment
as documentation of actual units ordered and shall describe the end use
and price.

A (per quarter-90 day), one time postponement of the scheduled quartly
payments can be used as a grace period, (not to extend beyond 15 days
of the due date of each quarter). After this time, A 2% late fee will apply to each payment that extends beyond (each) 105 days.


IMDEMNITY:
Client - ____________________shall hold
Creator –__________________ harmless from and against all judgments and related cost and expenses arising out of, or concerning manufacturing and loss of retail sales.

Creator –__________________ shall not hold Marketer/Manufacture in violation of copyright and will not infringe on any party. 







REMEDIES:
All disagreements and or breach of contracts shall be remedied through a mutually approved third party mediator that may or may be appointed by a judge or an arts mediation service. All legal expenses and research cost will be paid by each party individually. If the two parties cannot reach reconciliation, a decision must be reached via the court system and the proven infringing party will be responsible for all legal fees. All remedies shall be held in the state of Florida and in a mutually agreed county.

CURE PROVISION:
The infringing party will have 30 days to cure or resolve a problem before mediation or legal action can be taken. 



Note:This is a contract for art services and shall not be considered as“Work For Hire” .
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sofakinggood said:


> not for this one, its very unique and has not been done before...sorry i can explain more at this stage but would be greatful for assistance with the query regardless of what the design is.
> 
> cheers
> a


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## sofakinggood (Dec 5, 2005)

trend said:


> Here is some info that may help. copied from a previous post that i have used...
> Report Bad Post


Hey trend, thats great... you ve been most helpful providing that information, it willl be most helpful. it cover angles that i had not thought of too...so thanks again.


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## trend (Jun 4, 2008)

happy to help out.


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