I am a fabric designer and I have designed a new print. A manufacturer of furniture wishes to use that print and apply it to furniture for sale. I do not want to sell the print outright as I would like to have the option of using it myself in the future. 

In this situation you are looking to allow another to use your design but retain ownership and receive financial benefits from doing so. The best option therefore is to licence the use of the design to the manufacturer. The starting point should be to have a form licence agreement drawn up, the foundation of which could be the ACID royalty/licence agreement. It is important that the agreement is reduced to writing for a number of reasons:

  • It provides commercial certainty to both parties as to what the agreement between them is.
  • There is no ambiguity as to what the manufacturer is licensed to do, how long it is licensed to do it for, on what types of products it can use the design and whether you will be at liberty to grant licences to others.
  • The terms of payment can be specifically set down such as whether you will be paid a one off licence fee or a percentage royalty per sale made by the manufacturer or a combination of both.

Last update on 28.09.11 by the ACID Team.

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