eSignature Licitness for Photo Licensing Agreement in United States

How to eSign a document: eSignature licitness for Photo Licensing Agreement in United States

hello and welcome to another in bent right comm youtube show my name is Andrew Krause I co-founded an event right with Stephen key over 18 years ago so on this show I want to talk about licensing contracts and just really it's really the basics what is a licensing contract as in a previous video I explained that sometimes when people are utilized in saying they don't know the difference between a patent and what is licensing and what is a patent so patent is just protecting something and a licensing agreement is your agreement with the company that you do a deal with so that they have to pay royalties while they sell the product so I wanted to cover a little bit more about what is a licensing agreement why do you need one and cover a few things that shock people a good percentage of a percentage of our students when they do a licensing agreement the company doesn't care about a patent now some don't care at all say oh no yeah we'll pay you a royalty we we we don't really do patents and but you came to us with this idea we're gonna distribute and sell this and we'll pay this royalty so don't always think and I had talked to a patent attorney the other day and he was like well what are you selling what are you selling and it's like well you're selling the benefit of your product so they can sell this thing to make money the licensing contract does not always have to be dependent on a patent and it's actually better if it's not quite often it is and that's fine you filed a provisional and you see if they want to pay for the patent or give you the money to do it and you can write in there that your licensing the patent but sometimes your licensing the know-how or just the the product itself so one thing that surprised a lot of people about licensing agreements it doesn't have to be dependent on a patent patent patent licensing the pan you can license the know-how or the product itself without the patent and you can that's another thing that I think is really important to understand with licensing agreements there are no rules there are basic rules that are very important and you shouldn't make up a bunch of your own rules but if you and the licensee you're the license or and they're the licensee if you and then a on things you can put whatever you want a licensing contract it's not like a patent where it has to be written a certain way for a patent office to approve it this is a contract between you and the company so as long as everything makes sense to both of you you can agree on whatever and that's what I think some some patent attorneys don't understand they get too wrapped up in the patent now so some companies really care about the patent it'll be included as far as the agreement that that's what your licensing so we're like well we'll go ahead and file it we want that perceived protection of patent pending others are like we don't care you can file it if you want but yeah we'll pay you royalties and your main distribution is your protection so there the fact that they're in 20,000 stores and they get it out there first in a big way first to market is your protection and a lot of people don't realize like oh that's I guess that is protection because everybody else is the me - right and you team up with a big company get out there really quick so that's a great form of protection so the license agreement is an agreement between you and the company that they are gonna pay royalties whenever we have 98% of our students do do deals where they pay you quarterly and so that's every three months and they pay your royalties on what they sold so it's got to be in the stores and selling for a quarter three months and then you get your your royalty checks that way so that's called and then you usually want to have minimum guarantees as well so minimum guarantees will guarantee that they have to pay you a certain amount whether or not they sell that so in other words it's one way of many I can't go into them all of ensuring that they don't just license it and sit on it does they want to pay you for something for money for something that's not in the market and not making him any money so a licensing agreement again is agreement between you and the company that they're gonna pay royalties and on the products that they sell and they have to have certain performance guarantees a lot of times what our students get contracts they have no performance guarantees and they're kind of freaking out it's like no that's okay we'll convince them that this is what we need to do to get this deal done and once you explain to a company that will apply a license this to you and there is no performance guarantee you could just sit on it for 20 years and do nothing and they can't really argue that but wouldn't say it just that way but it's a very key point in a licensing agreement performance guarantees the main one that uses a lot of the time is minimum guarantees certain dollar amounts they sold zero units they still need to pay that now of course if you go beyond those minimums they'll sell they'll pay you royalties on whatever you sell and usually they're the minimum guarantees or minimum they're very minimal so but it's ensuring they don't sit on it so you know P some people are so new when they asked me what's the difference to patent in licensing and then I know ok well we need to educate some folks and that's what our channel is all about so I wanted to cover just some really basic terms on what is a licensing agreement I hope you found this was helpful I can do more advanced ones on licensing agreements and I remind everybody to take care keep inventing and we'll catch up to you next time hi this is Steven key and I just want to thank you for watching and fit right TV we're here to save you time save you money and show you how you can bring your products to market through licensing so please subscribe down below click on the button and tell your friends thank you