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licensing agreement - anyone!

 
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LindaB

posts: 8

Apr 16, 2008 10:19 AM ET    Quote  Report Abuse
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Does anyone know if there is a standard or usual percentage changed for licensing fees which are based on gross sales?
 
Also would like to understand how the rate is usuallly determined..ie previous success of product etc.
 
Tks
Linda B
 
tgroup

posts: 111

Apr 16, 2008 10:25 AM ET    Quote  Report Abuse
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Hi Linda-

It really depends on the industry--each industry can have its own range. A lot of my work is done through licensing so if you tell me the industry I may (may) be able to give you an idea. Licensing.org has some good resources that might help. Before entering into any licensing agreement I would definitely recommend that you consult a qualified attorney. The contracts can be very complex with lots of loopholes.

Good luck,
Ron

tgroup4/16/2008 10:29 AM
LindaB

posts: 8

Apr 16, 2008 10:47 AM ET    Quote  Report Abuse
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Thank you so much for your response and the web site info. I am going nuts trying to read more about these agreements.
 
The industry I am targeting is children`s swimwear.
 
Thanks again.
 
Linda B
May 20, 2008 5:31 PM ET    Quote  Report Abuse
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Generally, it`s difficult to garner licensing in apparel unless:
  • you`ve invented and patented a TRULY unique product with proven sales demand
  • you`re a star
Most licensing agreements are not bound to products per se. Rather, a manufacturer is buying the rights to use your name on a product they already manufacture or one similar to it. At best, licensees stipulate quality levels and colors.


-------------------------

~Nurture people, not products~
http://www.fashion-incubator.com
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