Licensing

Why? You will make great things. I want you to own those things.

Licensing Example

TL;DR

• For Profits have Compensation, Duration, and Indemnification rights with monetary terms typically found in Non-Profit licenses

• For Profit can be sold directly by you or via a third party

• For Profit licensing goals

  • Make money

  • "Lease" Intellectual Property

  • Keep Ownership

• Non-Profit licensing goals

  • Mission and Value driven

  • Cost Consideration. Keep it low.

  • Public benefit of everyone

For Profit Concepts

Licensing your own work for money involves granting permission to another party to use your intellectual property (IP) under specific conditions, in exchange for compensation. This can apply to various types of work, such as art, music, writing, or software. Understanding the key concepts involved in licensing is crucial to protecting your rights while earning from your creations. Here are some essential aspects to consider:

1. Intellectual Property Rights: Before licensing your work, ensure that you hold the necessary rights to it. This means your work should be original and, depending on the nature of the work, possibly registered with relevant authorities (like copyright or trademark offices).

2. Types of Licenses:

   • Exclusive License: Grants exclusive rights to the licensee, meaning no one else, including you, can use the work as per the terms of the license.

   • Non-exclusive License: Allows multiple parties to license the work simultaneously. You can continue to use your work and license it to others.

   • Sole License: Similar to an exclusive license, but you retain the right to use the work.

3. Scope of Use: Define how the licensee can use your work. This includes the medium, duration, geographical area, and specific use cases. For example, you can limit use to digital formats, restrict geographical areas to specific countries, or allow usage only in certain industries.

4. Compensation: Decide how you will be compensated. Options include:

   • Royalty Payments: A percentage of the revenue generated by your licensed work.

   • Flat Fee: A one-time payment for the license.

   • Advance Against Royalties: An upfront payment which is then offset against future royalties.

5. Duration: The term of the license should be clearly defined. Determine whether the license is for a limited time or in perpetuity.

6. Termination Conditions: Specify under what conditions the license may be terminated. This could be due to breach of contract, at the end of the licensing period, or under mutual agreement.

7. Quality Control: Especially important for brand-related licenses, where the quality of products or services associated with your IP can affect your reputation. Define the standards and approval processes.

8. Modification Rights: Decide if the licensee is allowed to modify your work. If modifications are permitted, detail the extent and nature of such changes.

9. Indemnification: Protect yourself from potential legal issues arising from the licensee’s use of your IP. Indemnity clauses ensure that the licensee bears responsibility for any legal problems related to their use of your work.

10. Rights Upon Termination: Specify what happens to the licensed work and any derivatives after the license terminates. Ensure clear conditions about the disposal or return of the materials.