What are Licensing Agreements?
License agreements are what people use to sell their creations for a profit under different circumstances. It’s an agreement between the creator and the person who wants to purchase what they’ve created. According to Fintalet’s licensing agreements consultants, these agreements can vary with creativity, but there are a few common things they all have in common:
A license is a contract between two parties (the licensor and licensee), by which the licensor grants to the licensee subject to her or his other terms, one or more of their respective rights under copyright or related rights. A license gives the licensee some of the rights that would usually belong exclusively to the copyright holder holder – for example, it allows them to create derivative works based on those works.
License agreements are legal documents that protect the creator and the purchaser from future complications. A contract should contain the following elements:
Designation of the Parties – The licensor is also known as the licensor, and is a person or organization that grants licenses to others for use of his copyrighted material. The licensee is also called licensee, and is a person or organization that receives permission to use another’s copyrighted material under certain conditions (as outlined in a license agreement).
Setting Forth the Material to be licensed – This section states what copyrighted works may be used, whether it be artwork, music or written work. Whenever using someone else’s work, it should always be accompanied by this section of your license agreement.
Details of the Licenses that are Being Granted – This section details how long the license agreement will last, what the licensee is allowed to do with their purchased material, and how they are allowed to use it. It also states when payments are due to the creator.
Restrictions on the License – This details what restrictions there may be on what the licensee may do with their purchased material. Some restrictions may include: being able to use them for profit, not being able to sell them or share them without permission from the creator or other parties involved with your product.
Exclusions From License Grant – This section details if any portion of your purchase is excluded from a licensing agreement. It may include things such as: what portion of a piece is being sold, any possible trademarks or trade dress included in the purchased material and if any other party may be involved with the project.
Expiration of Grant (Warranties) – This section details how long a license agreement will last for. Most agreements state that it will last until the copyrighted material is no longer being sold by the licensee or publisher; in which case, it will expire after a specific length of time.
Assignment – This section states that anyone who owns copyrighted material is allowed to sell it to whomever they choose. This will give the licensee the right to assign the license agreement they have purchased to someone else. It also states that the licensor is allowed to assign the license agreement at any time.
Rights Reserved – This section details that the licensor is allowed to retain ownership of all of his material, and will not surrender any portion of it, nor allow anyone else to make a derivative work or create a translation or new version of it. They retain all rights and interests that don’t fall under what has been sold in their license agreements.
In addition to these core elements, there are several optional clauses that could be included in your license agreement. It’s important to have a well-written contract, or else you may run into issues with the licensee refusing to pay you for your material. If this happens, you will have no way of collecting payment from them if they fail to compromise.
Whether you’re a creator selling your work or a person who wants to purchase another’s work, it’s important to understand what kinds of legal documents are used in each situation and how they can protect both parties involved. A creator should always try their best to use a license agreement when granting rights over their work.
Licensing agreements can vary from one creator to another. They may change depending on how long the license agreement is allowed to last, how much it costs and what materials are being sold. Some licensing agreements may be priced by the item, or by the total amount for a specific kind of material (for example, a tank top with an image of a popular song on it). Any licensing agreements you utilize should be detailed and concise. The more details provided in your contract, the less likely there are going to be any disputes over ownership or payment.