Advice on licence agreement, royalties and exclusive rights

[Martin MGA]

Hi all.

I am currently in negotiations with a company to get produced and sell a product bearing said companies trademark/image.

Everything is set with the manufactures and ready to go, awaiting the licence agreement.

The company though has advised me that they normally seek 15% of each units sale price for royalty. My original offer was well short of this at 4%.
What, in your opinion, is the average royalty percentage paid for image rights?

Also, I want to have exclusive rights to sell this particular type of product. Does anyone have any advice on the best way to set about gaining this?

Thanks,
Martin

 

[bwglaw]

The commission is a matter for negotiation taking into account what you can afford to sell your products for, the number of units sold and the value of each. I have negotiated an agreement where the reseller sought 35% commission because the products were of low value i.e. £50 each.

We can draft a License Agreement to preserve your copyright and include some reselling clauses setting out what has been agreed etc

 

[Martin MGA]

I see. Well considering my products are only going to sell for little over £20 that could explain the higher than anticipated percentage.

Can you PM me a guide price on such a draft?

Thanks,
Martin

 

[bwglaw]

Can you PM me a guide price on such a draft?

Happy to quote if you could email us with your requirements and we can give a quotation. Each agreement is different, some more complex than others, some not.

Jonathan

 

[Antonia @limeone.com]

Have PM'd you.