lealea@whinydogpress.com12/24/02 11:00 AM > Stephen, > > I license my images for use on several products (books, calendars, cups, > plates, framed prints, magnets...) and one of my images was recently chosen > for greeting card licensing with worldwide distribution rights thru a large > card company. The image is Wedding Roses. > > Things to be aware of: > > Distribution. Where are these cards going? US, Europe, worldwide? What are > the channels of distribution? How do they get there? > > Term of Contract. How long will they have rights to your image? Get this in > writing. Hello Lea, Term of contract is five years. THE CONTRACT IN ESSENCE STIPULATES THAT ALL IMAGES USED ARE COPY RIGHTED BY YOU, YOU WILL RETAIN OWNERSHIP OF ALL IMAGES, AND THE CONTRACT SIMPLY LICENSES US TO MARKET THEM. > Exclusivity. Can you use the image for other things...including cards with > another company...while this company is using it? I'll ask that one. > Guarantee. The company should have SOME idea of what you can expect to make > on this venture. Best case/worst case and inbetween. They don't pick images > they hope will sell, they pick images they KNOW will sell. Have them tell > you what they expect it will do in the market. Also ask WHY they picked that > image. What about it was appealing? Trust me, they know the answers to all > these questions. Yes, I will ask all these questions and more. He told me that he is only interested in the ones that sell. > Right to audit. What if you think they are selling more than they report to > you? Do you have any recourse? My contracts state that I can audit any > company at any time for descrepencies in accounting. If they are more than > 5% off in what they've paid in royalties they have to pay for the audit and > the difference plus interest. I'll ask that one too. How would I ask something like that without sounding like I don't trust him? > Approval. Do you have any say in how your image looks on their card? What if > they want to put text with it and you don't like what they say? Can you > refuse to sign off? What if they use colors, edges, design you don't like? > Can you refuse to allow it to be made if you don't approve? No, he does. He knows what sells. I had a photo of Comet Hale-Bopp over a house. The porch light on the house was too bright in the photo so he might have someone tone it done in Photoshop. There will be text in the card. He deals with Christmas cards. > Copyright. Will the card bear your copyright as you wish it to be? > > Legal fees. What if you end up going to court. Who pays? In what state do > you go to court? You would prefer your state and not theirs if you live in > two different states. It's cheaper that way. So many good questions. I'll have to ask him. > My best case licensing is with Dayspring...a division of Hallmark. They are > honest and pay on time. They also sell like mad. > > My worst case is a company who made HUNDREDS of THOUSANDS on my images by > putting them on cups and plates and distributed them all over the world. > They stopped paying royalty fees. My agent and I discovered the company was > over 50 thousand dollars in arrears to me. He didn't pay. I sued, won the > judgement but guess what? He declared bankruptcy, shut down the business and > opened in another state with a new name. Without investing loads on legal > fees there was nothing I could do to get the money due me. I rest > comfortably knowing what goes around comes around and he'll get his due some > day. > The best contract in the world doesn't guarantee that people are honest, so > you have to be careful. Go with your gut. That stinks. However, I think I have a strong feeling he is legit and honest. My gut feeling. He has been in the greeting card business for 52 years and has been one of the judges for the Louie awards which give out an award for the best greeting card of the year. Thanks for the help Steve
