Intellectual property is defined as creative work that falls under copyright, trademark, patent, or trade secret law. This property has value because others want to use it, possess it, or own it. If handled wisely, creative people and firms stand to profit from this. Publishers of periodicals, books, corporate printed materials, advertising, and web sites seek image sources and written text. Recording and music publishing companies need a constant supply of music, lyrics, and musicianship. Software producers want to market applications and hire software writers, graphic designers, and other creative people. Manufacturing and marketing firms look to produce or sell products incorporating others' proven trade and service marks, and trade secrets. Art is sought by galleries, museums, and art patrons.
When attempting to benefit from the value of their intellectual property, owners are faced with the decision of selling it outright or licensing limited use to ensure a continuing revenue stream by also licensing it to others. One of the great advantages of intellectual property is that it can often be licensed many times to many users without conflict, although it may prove unwise to license the same work to competing entities.
Licensing requires negotiating so that licensees (i.e., users of intellectual property) understand the limited use they are paying for and that they are not purchasing ownership of work. To ensure agreement clarity and understanding, written documents should always be used, signed by each party. This should be done regardless of the value of the intellectual property or the amount of payment for use, and it should always be done before work commences or intellectual property changes hands.
While licensing offers many advantages over outright sale, it also brings responsibilities that must be carefully spelled out in the licensing agreement. In the case of trademarks, for example, permitting others to use a mark(s) without close supervision of the quality of goods produced or service rendered (e.g., in a franchise situation) can endanger trademark ownership. An oral agreement or incomplete written agreement involving copyrighted works often leads to unintended use or the impression that the work was purchased and not just licensed.
If you routinely license intellectual property, ask a lawyer in your state who understands intellectual property licensing for a standardized contract form for general licensing use. You should, however, always consult a qualified lawyer when licensing major projects (e.g., book or recording contracts) or where the other party presents their own document(s) for signing. An intellectual property lawyer can draft appropriate documents or analyze a document presented to you, review it with you, make suggestions regarding changes to better protect you, and negotiate on your behalf if you wish.
David is somewhat unique in that he licensed his own photography for over 20 years to small through Fortune 500 firms, publishers, and advertising agencies worldwide. He also holds a publishing contract for the book PRICING PHOTOGRAPHY. He is an experienced licensor and negotiator. Don't hesitate to call-there isn't a charge for initial consultations.
