Wednesday, December 4, 2013
Wants to License Video Game Merchandise in India
How it's done ... Acquiring permission to sell merchandise that incorporates video game trademarks or copyrighted material requires that you locate the owner of rights, negotiate an agreement, and execute the agreement in writing. However, the agreement used in merchandise licensing is usually more complex than a typical permission agreement and contains additional responsibilities and boilerplate -- for example, each party may seek warranties and indemnity.
Payment. You probably won't have much choice how payments are structured as the licensors usually dictate the terms. Typically, the licensor is paid an advance plus a royalty based on a percentage of income from sales. The company selling the merchandise (you, the licensee) must meet certain obligations including payments, quality control, and enforcement of rights. If you fail to do so, the license can be terminated.
For more information. This licensing article explains some of the legal basics, and this article explains some of the business basics. And this is what could happen if you sell merch without authorization.