art licensing 101 seminar july 2010 maria brophy rs
DESCRIPTION
Slide Show from Maria Brophy's ART LICENSING 101 Lecture at San Clemente Art Supply in July 2010TRANSCRIPT
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ART LICENSING 101 With Maria Brophy(Paul Brent, Licensed Art products, shown above)
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•Art Licensing Expert
•Brand Manager for Drew Brophy
•Licensing CONSULTANT
•Blogger for Artists on MariaBrophy.com
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Photo © Jason Wallis
DREW BROPHY
• Professional Artist for over 20 Years
• 30 different manufacturers use his art to make their products look cool
• Is known for his distinct style
• Is featured in over two dozen magazines, newspapers, TV shows and books yearly
•Lives the life of his dreams
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ART LICENSING
It’s like Renting your Art Out to a Manufacturer…..
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WHAT IS LICENSING?In short: Licensing is when a manufacturer “rents” your art to print on their product!
Art licensing is an agreement between two parties. 1 – The user of the art and2 - the artist to use the artwork on a specific product for a limited time .
Licensing is everywhere! Most of what you buy is licensed, from clothing to cleaning products!
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BENEFITS OF LICENSING YOUR ART
• Licensing is a great way to earn $$$ over and over again on one image
• You never produce or keep inventory – you just create the art
• Licensing helps to market your art and thus grow your brand
• YOU GET TO DO WHAT YOU DO BEST!
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Artists: Do what you do best
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WHY WOULD SOMEONE PAY YOU TO LICENSE YOUR ART?
1. They may have a great product but not-so-great graphics
2. In-house artists can’t do it all3. If the artist or art is well-known, it will sell
more of the manufacturer’s product4. Your art may just reach the right target
market that the co. can’t reach on their own5. Your Art Solves a Problem for Them!
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PALISADES SKATE DECKSBy licensing Drew Brophy’s Art, this new brand is able to:
•Use Drew’s Art to Reach a youthful market
•Use Drew’s name and reputation to lend credibility to their products (since they are a new brand, this is important)
On their own, with their own graphics, it could take years for them to get the sales they are getting right now.
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ART LICENSING
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Categories for Licensing:
• Clothing, shoes, textiles, fabrics• Cell phone screensavers• Skins for electronics• Packaging• Toys• Beach products• Household goods• Advertising Campaigns
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TOGOS SUMMER CAMPAIGN
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Cindy Media Floral Patterns
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DREW BROPHY / CONVERSE CHUCK TAYLOR DESIGNSSUMMER 2010
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PAUL BRENT’S BATH/BEACH SCENES
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THE MONEY!• How much can you make Licensing Art? $0 -
Millions
• The top performers earn millions a year (Paul Brent, Wyland, Mary Englebright, Thomas Kinkaide)
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GETTING PREPARED FOR LICENSING• Brand yourself / Find your niche
• Have a strong style & unique signature
• Create art that appeals to the masses
• Create COLLECTIONS of Themes
• Keep ownership to all copyrights
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Collection of a Theme
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Why you must keep ownership to your © - THE COPYRIGHT OWNER:
• Has all rights to reproduction of the work
• Has rights to sell the artwork to another entity for financial gain or otherwise
• Has COMPLETE AUTHORITY over what happens to the artwork, forever and ever
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COPYRIGHT ACT OF 1976• States that copyright protection subsists from the time
the work is created in fixed form. • The © in the work immediately becomes the property
of the author who created the work
• EXCEPTION: Artist created work for their employer (see copyright.gov for all exceptions)
• Yes, you SHOULD REGISTER your art through Copyright Office
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PLAN YOUR LICENSING STRATEGY
• Choose what products you want your art on and where you want them sold
• Choose the RIGHT Manufacturers
• Keep good Quality Control to protect your name, your art, your brand
• YOU ARE IN CONTROL OF YOUR ART!
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DECIDE HOW YOU WANT YOUR ART REPRESENTEDQuality vs. Quantity
Lots of money now (Ed Hardy) or longevity (Wyland)Sold in quality stores or Wal Mart?
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HOW TO GET A LICENSE DEAL
• Exhibit at Trade Shows
• Prospecting / Sales: Do your research, make up contact lists, and go get ‘em!
• Through your good reputation
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CONTRACTS
ARE A NECESSARY EVIL in ART LICENSING!
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HELP! I DON’T HAVE A BUSINESS MIND!
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Don’t worry:YOU CAN’T SCREW UP!
EXCEPT, MAYBE FOR THIS ONE THING…
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AVOID THESE IRREVERSIBLE MISTAKES IN ART LICENSING CONTRACTS:
1.Never sign a Work for Hire Agreement2.Never agree to “Assignment of Copyrights”
language3.Never agree to “buyouts” of your artwork
All 3 will take away your ownership to copyright!
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THEY WANT TO LICENSE YOUR ART. WHAT STEPS TO TAKE?
1. Meeting – gather info2. Deal Memo – send it to them3. License Agreement – once you come to
agreement4. Collect Advance - $ before art is provided5. Provide digital files of the art6. Follow up to production process7. Help your Licensee through your channels
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TYPICAL LICENSING DEAL
• You are paid a Royalty % of the Manufacturers’ Sales (HOW MUCH?)
• You are paid an Advance against future royalties up front (HOW MUCH?)
• Your name and © notice goes on everything• You have complete control and authorization
over the final product
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CONTRACT SMARTS
• BEWARE OF: The “Sneaky Contract”
• Don’t sign anything that you don’t completely UNDERSTAND or AGREE with
• For large deals, get an attorney
• Better yet, use your own agreements!
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THE ANATOMY OF A LICENSING CONTRACT
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SURPRISING INFORMATION
• Many products don’t make it to market for 18 months - 3 years from the time you do the deal
• This means you won’t get royalties until 18 months – 3 years from deal making
• Some products NEVER make it to market
THIS IS WHY WE ALWAYS GET AN ADVANCE $$$
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License Schedule Page 1(Example)
Schedule A “PROPRIETARY SUBJECT MATTER”: The “Proprietary Subject Matter”
shall consist of up to seven (7) copyright images owned by Licensor and provided to Licensee for the purposes of this Agreement.
“LICENSED ARTICLES”: The “Licensed Articles” shall consist of:
Longboard skateboard decks for adults, children. “DISTRIBUTION OUTLETS”: The term “Distribution Outlets” shall mean
the following market(s) in which Licensee is hereby authorized to sell and/or distribute the Licensed Articles: Specialty and Sporting Goods Retailers
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License Schedule Page 2“TERM”: The “Term” will commence on January 11, 2010 and expire
on January 11, 2012. “LICENSED TERRITORY”: The “Licensed Territory” is North America and
its territories. “ROYALTY”: The “Royalty” is 8% “ADVANCE”: The “Advance” is U.S. $ 5,000.00 due upon signature of
the contract. “GUARANTEE”: The “Guarantee” is n/a. “PRODUCT LIABILITY INSURANCE”: The amount of bodily injury
coverage under product liability insurance is $1,000,000.00 combined single limit with no deductible amount.
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LOOK OUT FOR:
• New Companies – usually fizzles and doesn’t work out (get an advance from them)
• Companies that won’t pay an advance (some exceptions to this)
• Companies that have never licensed before (you may want to go with a flat fee for these)
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DEVELOPING A LICENSING PROGRAM
• Takes TIME
• It helps to have a distinctive style that SELLS
• You MUST have many images in a theme
• You MUST own the copyrights
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Encourage Licensees to
advertisewith your Artwork,
Name, Face
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ARTISTS – STICK TOGETHER
• Help each other succeed
• Share information – Keep in Touch
• Refer each other
• Link to each other on Twitter, Facebook, Etc.
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VISIONI SEE A WORLD IN WHICH THE TERM “Starving Artist”
IS A THING OF THE PAST &
WHERE ALL ARTISTS ARE WELL PAID FOR THEIR TALENT AND
HARD WORK
TOGETHER, WE CAN MAKE IT HAPPEN