ART LICENSING 101 With Maria Brophy(Paul Brent, Licensed Art products, shown above)

•Art Licensing Expert

•Brand Manager for Drew Brophy

•Licensing CONSULTANT

•Blogger for Artists on MariaBrophy.com

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

ART LICENSING

It’s like Renting your Art Out to a Manufacturer…..

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!

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!

Artists: Do what you do best

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!

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.

ART LICENSING

Categories for Licensing:

• Clothing, shoes, textiles, fabrics• Cell phone screensavers• Skins for electronics• Packaging• Toys• Beach products• Household goods• Advertising Campaigns

TOGOS SUMMER CAMPAIGN

Cindy Media Floral Patterns

DREW BROPHY / CONVERSE CHUCK TAYLOR DESIGNSSUMMER 2010

PAUL BRENT’S BATH/BEACH SCENES

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)

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

Collection of a Theme

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

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

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!

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?

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

CONTRACTS

ARE A NECESSARY EVIL in ART LICENSING!

HELP! I DON’T HAVE A BUSINESS MIND!

Don’t worry:YOU CAN’T SCREW UP!

EXCEPT, MAYBE FOR THIS ONE THING…

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!

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

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

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!

THE ANATOMY OF A LICENSING CONTRACT

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 $$$

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

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.

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)

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

Encourage Licensees to

advertisewith your Artwork,

Name, Face

ARTISTS – STICK TOGETHER

• Help each other succeed

• Share information – Keep in Touch

• Refer each other

• Link to each other on Twitter, Facebook, Etc.

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