Forums > General Industry > Need Help - Licensing Issue

Photographer

Ty Simone

Posts: 2885

Edison, New Jersey, US

So, Here is the Scenerio I find myself in...

I have several artwork pieces that can make great T-shirts.
I have one in particular I am fond of, and this weekend, I decided to have the T-shirt made.
The company I used is a chain, not overly large, that specializes in custom t-shirts like mine.
The person that made my t-shirt loved the concept so much, he wanted to talk about a licensing agreement with me for use of my artwork etc...
(nice of him to be legit.)

Here is where I have a problem.
He suggested a per sale basis. In other words, If someone decides they want one with that design on it, I get paid a piece of the pie.

I am told that this is common in the T-shirt industry (where it is a small personalization chain like this) Which is all well and good.
However, How will I ever be able to tell if he is shorting me?

Anyone here have any experience in this field? (normally when I license my work, it is a flat fee per x copies because it is going into a program or game, and I can track sales of those easily enough)

thanks in advance.

Nov 27 06 06:43 am Link

Photographer

Ty Simone

Posts: 2885

Edison, New Jersey, US

anyone?

Nov 27 06 08:57 am Link

Photographer

Halcyon 7174 NYC

Posts: 20109

New York, New York, US

If you see 5000 of the shirts on the street and you only got paid for 6, then you would probably need to file suit in court and audit their finances to find out.

I suggest that you request he pay you when they print a batch, not when the shirts sell. So if they want to print 100, then you get paid the license for 100. This is instead of buying the rights all up front for limitless printing.

Nov 27 06 10:45 am Link

Photographer

Ty Simone

Posts: 2885

Edison, New Jersey, US

I tried to go that route, however it is on the fly printing. In other words, people come into the shop, pick the design, and the shirt is printed right there. He keeps maybe 5 in stock at most.

Nov 27 06 11:06 am Link

Photographer

studio36uk

Posts: 22898

Tavai, Sigave, Wallis and Futuna

Ched wrote:
I suggest that you request he pay you when they print a batch, not when the shirts sell. So if they want to print 100, then you get paid the license for 100. This is instead of buying the rights all up front for limitless printing.

That should work for Ty... not at all unlike licensing an image for a CD cover [or something similar] based on production/print runs in batches rather than individual sales.

A reasonable negotiating position might be "$W" for the first "X" number of salable copies [the total made less print trials; promos; and defective copies] and then "$Y" [usually 30 - 50% of "$W"] for further copies, thereafter, in batches of "Z" [number of additional copies per batch.]

The license should provide for auditing of use of the image and the accounting of moneys due by an independent 3rd party of your choosing [an accounting firm] if there is any doubt or submission of a certified audit of the same two issues by the manufacturer / licensee

Lastly there should be some reasonable care to insure that defective copies / seconds / misprints are not sold to the public - preferably they should be destroyed, but there may be other acceptable options.

Studio36

Nov 27 06 11:25 am Link