Licensing reproductions
11 Fees and royalties
- Will the artist be paid an advance against royalties? A proportion of anticipated royalties is usually paid up front as an 'advance'. Typically this is payable on the signing of the licence agreement and would be non-refundable.
- How and when are payments to be made? Flat fees are usually payable to the artist on signing the agreement. Royalties are usually paid at regular intervals known as 'royalty accounting periods'.
- Has the artist the right to a regular detailed royalty statement? Royalty accounting periods can vary from monthly to annual and the licence should state the start date of the first accounting period.
- Has the artist the right to a regular detailed royalty statement? It is usual in commercial licences for the artist to have the right to inspect and take copies of the licensee's books and records to check that royalties are being paid correctly.
- Will the artist charge an interest/service charge on overdue royalty payments?
- How can maximum sales be encouraged? Note: It is common to include a 'sales obligation' clause which states that the licensee undertakes its best endeavours to extend and promote sales of the 'Products in the Territory'. Inclusion of such a statement will enable the licence to be terminated if the licensee stops making any effort to sell.
- What if any expenses will be reimbursed? The artist may be able to claim for expenses incurred in the production of the reproduction. For example travel to the printers to approve proofs.
