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Art licensing is when the owner of rights in a work of art (very often the artist that created the work) allows another party (such as a product manufacturer or distributor) to reproduce and make commercial use of his or her artwork in exchange for either a royalty or a flat “license fee” under the terms of a contractual agreement (typically called a “license agreement”). Generally, the license agreement sets out the manner in which the artwork may be used (for example, on what products or in connection with what services), the length of time for which the work may be used, the territory where the work may be used and the agreed upon royalty or license fee to be paid in exchange for such use. Licensing can be an excellent way for artists both to build awareness of their work and boost their incomes. Indeed, as of the date of this writing, licensing is a $170 Billion dollar industry and growing!!! If I display my artwork on LicensArt.com, am I locked into using LicensArt.com as my licensing agent? In other words, is my relationship with LicensArt.com exclusive? No…and yes. Your relationship with us is initially non-exclusive and you may display your artwork on LicensArt.com without any obligation to use us as your licensing agent -- up until such time as you approve and sign a license agreement we present to you for consideration. However, once you approve and sign a license agreement we present to you, your relationship with us becomes exclusive for a period of twenty-four (24) months with respect to both (i) the artwork you’ve agreed to license through us (and any of your existing or subsequent work that is derivative thereof or substantially similar thereto) and (ii) the company or entity you’ve agreed to license your work to. This means that during the above-mentioned twenty-four (24) month exclusivity period, you may not license any such artwork we've helped you license (or work that is derivative thereof or substantially similar thereto) to new licensees on your own or through another agent, or make additional licensing arrangements with existing licensees that we introduced you to on your own or through another agent. Couldn't I just license my artwork on my own (i.e. without a licensing agency)? Certainly. And what sets us apart from the traditional licensing agencies is that you are free to do so even after you register with us, up until you approve and sign a license agreement that we present to you for consideration. Even after that, you are only committed to us with respect to the artwork we’ve helped you license (and any of your existing or subsequent work that is derivative thereof or substantially similar thereto) and the licensees we've introduced you to. By contrast, most traditional licensing agencies will seek an arrangement with you that is exclusive from the outset and that covers all of your work and all potential licensees. Then why should I let LicensArt.com help me license my artwork? With over 15 years of collective experience in the licensing industry and in the product development and sourcing arenas, our team is extremely well positioned to leverage our industry knowledge, experience and contacts to market to and match you with the most suitable licensees and to negotiate the most favorable royalty rates and other significant deal terms on your behalf. We are intimately familiar with all of the pitfalls and risks inherent in this business, so we know how not to leave your money on the table or license away more rights than you intend to. Moreover, we handle all of the time consuming and complex legal, accounting and other day-to-day administrative work associated with the license agreements we secure for you, so you can focus more of your time and energy on the business of creating rather than the business of, well, business. In short, our chief objective is to maximize the profits of our member artists while minimizing their headaches. Our commission rate is 35% of all revenues from license agreements we present to you (and that you approve), which is at the low end of the licensing agency commission spectrum. How do I display my work on LicensArt.com? As soon as you register with us, you may begin uploading images of your work to our searchable gallery (in accordance with our Terms of Use and our Agency Agreement). The uploaded images are searchable by genre, style, subject and keyword, and interested licensees are instructed to inquire with us. Do I have to be an established/professional artist to display my work on LicensArt.com? Absolutely not. Although we certainly encourage established and professional artists to display their work here, all artists (including art students and artists with no formal training) are welcome to do so as long as the artwork they upload is their original work and otherwise comports with our Terms of Use and our Agency Agreement. If I turn down a license agreement LicensArt.com presents to me, can I then enter into a different license agreement with the same proposed licensee on my own or through another agent? Not for a period of twelve (12) months. In order to protect ourselves from those who might otherwise try to take advantage of our services but avoid our commission, we require that artists who turn down license agreements we present to them not enter into other license agreements with the same proposed licensees on their own or through another agent for a twelve (12) month period. If an artist nevertheless enters into such a prohibited license agreement during the twelve (12) month period mentioned above, we will be entitled to collect our commission on the revenue derived from that license agreement.
We will regularly and aggressively market our searchable art gallery to thousands of prospective licensees across multiple industries and product categories. We may also periodically market the work of “featured” member artists to prospective licensees. What type of work may I submit? We recommend you consider posting only those images that you believe will have broad commercial appeal for use on products or their packaging or in connection with commercial services. For example, wildlife themes, floral patterns, food and beverage themes, sports themes, Americana, etc. are more likely to catch the eye of a potential product manufacturer or distributor than dark or unpleasant imagery. With that stated, however, artists may submit any type of still image artwork they wish to, subject to our Terms of Use and our Agency Agreement. How do I know if I own the rights to my artwork? Generally speaking, in the United States, the creator of a work of art automatically owns the copyright in the work. However, there are some exceptions (for example, if the work is created for an employer and meets certain criteria it may be deemed a ‘work made for hire’ and the copyright may be owned by the employer). Also, if the work contains elements that are owned by other parties (for example, a collage of famous labels featuring various corporate trademarks), the creator of the work may not be able to freely license or otherwise exploit it without written permission from all parties owning elements featured in the work. Nothing in this FAQ is intended to constitute legal advice. If you are unsure of whether you own or may freely license your work, please consult a competent attorney. Does LicensArt.com screen my work based on perceived marketability? No. We believe in letting the markets decide what type of artwork is most desirable at any given moment. Therefore, as long as your images meet our Terms of Use and our Agency Agreement, we will generally allow them to remain in our gallery and to be searched and viewed by prospective licensees. However, we reserve the right to remove any images at any time for any reason. How much money can I make from licensing my work? It all depends on how desirable your work is to prospective licensees, and then on how successfully those licensees are able to sell products featuring your work. We market primarily to prospective licensees with at least a national (if not multinational) presence, so if a product line featuring or utilizing your artwork catches on, it could mean thousands or even tens of thousands of dollars in royalty income for you. However, we obviously cannot make any guarantees as to how much licensing income you may earn (if any), as we have no control over how desirable your work will be to potential licensees or how popular such licensees' products will be with their customers. Is there a limit to how many images I may upload? Not currently. However, we reserve the right to set such a limit at any time. What if I already have a licensing agent? If another licensing agent represents you with respect to any or all of your artwork, you may not upload any such artwork to LicensArt.com. Each time you upload an image you will be asked to verify that no other agent or party is entitled to a commission on revenue derived from licensing the work depicted in that image. What if I already have one or more license agreements in place for my artwork and I want LicensArt.com to help me secure additional license agreements? No problem. You'll be asked about any existing license agreements each time you upload an image to LicensArt.com. Please disclose all such information fully and accurately, so we can properly exclude your existing agreements and the product categories they cover from our representation arrangement with you. What if I want to sign with another licensing agent after I have registered with LicensArt.com? You may terminate our arrangement and sign with another agent at any time up until we bring you a licensing deal that you approve. After that, our arrangement becomes exclusive with respect to the artwork you have agreed to license through us (and any of your existing or subsequent work that is derivative thereof or substantially similar thereto) and the licensee(s) we've introduced you to for a twenty-four (24) month period. During that time, you may not terminate our arrangement with respect to such artwork or licensee(s) (except as set forth in our Agency Agreement) or appoint another agent to represent you with respect to such artwork or licensee(s). Does LicensArt.com continue to collect a commission on the license agreements it found for me after my arrangement with LicensArt.com expires? Yes. After our arrangement expires or is terminated, we continue to collect our commission on any license agreements we found for you throughout the entire term of such agreements and any renewals or extensions thereof entered into by you within the two (2) year period following the expiration or termination of our arrangement. Does LicensArt.com handle all of the legal, accounting and day-to-day administrative work associated with the license agreements it finds for me? Yes. Once we secure a license agreement for you, all of the administrative hassles and headaches associated with that agreement become our problem, not yours. Our standard license agreement requires licensees to remit royalty payments to LicensArt.com on a calendar quarterly basis. Within thirty (30) days after our receipt of such royalty payments, we will deduct our commission percentage and then remit the remainder to you. What if a licensee fails to pay or underpays? If a licensee fails to pay royalties in a timely manner, it will be in breach of contract and our in-house legal counsel will issue a breach letter to the licensee demanding payment. If the licensee still won't pay or is unresponsive, we may enlist the help of an outside collection agency or law firm to secure payment, and the collection agency's or law firm's fee will be deducted off the top of any amount collected before our commission on such amount is calculated. As for underpayment, we reserve the right the audit the books and records of all licensees. Therefore, if you or we suspect that a licensee has underreported its sales or has otherwise underpaid royalties owed, we may examine the licensee's books and records to determine whether the licensee has reported and paid accurately. How do I know that LicensArt.com has paid me everything I am owed? Along with the royalty revenue we remit to you after deducting our commission, we will supply a copy of all of your licensees' royalty reports for the relevant accounting period, so you can determine for yourself that we have performed our calculations correctly. Can I collect the royalties from licensees directly and then pay LicensArt.com its commission? Sorry, no. We must collect all license fee and royalty payments from all licensees. Why does the forum have a separate registration process from the rest of the website? The forum section of the website is intended as a stand alone feature. As such, users who are not interested in uploading or inquiring about the commercial use of images on LicensArt.com may still join and participate in the forum, and users not interested in the forum may choose to register only through the LicensArt.com homepage in order to upload or inquire about images. Users interested in uploading or inquiring about images and in participating in the forum will have to register once with LicensArt.com by clicking through the registration link on the website homepage and once again with the forum by clicking through the registration link on the main forum page. What if I have specific questions about joining or using the forum? Please refer to the forum FAQ for answers to common questions about the forum or its features. |
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