Understanding Licensing Types and Options
License Types
When licensing surface designs, there are three common types of agreements: exclusive licenses, non-exclusive licenses, and buyouts. Each offers different levels of access and usage rights, and it’s helpful to understand how they compare.
Hybrid options may provide additional flexibility, which I’ll also touch on below.
- Exclusive Licenses
An exclusive license grants one client the rights to use a specific design for a particular product or product category for an agreed-upon time frame, typically 1 to 2 years. For example, a fabric design licensed exclusively for upholstery could still be licensed by another company for bedding or apparel. This approach ensures exclusivity within your market while allowing the design to remain available for unrelated uses.Exclusive licenses are an excellent option for brands seeking something distinctive within their niche.
If the design is commissioned (custom-created), a design fee may also apply. However, for non-exclusive arrangements that align closely with my style, I may waive this fee.
- Non-Exclusive Licenses
A non-exclusive license allows multiple clients to use the same design across various applications. This option is often more affordable and flexible, making it an ideal choice for small businesses, boutique makers, or clients who don’t require exclusivity but still want access to unique, original patterns. - Buyouts
I don’t offer buyouts, which would grant full ownership and transfer all rights of a design to the client. Under a buyout, the design would no longer be available for use or licensing to anyone else. Instead, I focus on licensing models that preserve a design’s versatility and value. - Hybrid Options
You can also consider a hybrid option. For instance, you might license a design on a non-exclusive basis but in a colorway created exclusively for your brand. This allows you to stand out in your market while keeping costs manageable.
Pricing Models
Flat Fees vs. Royalties
When licensing designs, compensation can take the form of a flat fee, royalties, or a combination of both.
- A flat fee is a one-time payment that grants the client the rights outlined in the agreement, offering simplicity and predictability for both parties.
- Alternatively, royalties involve ongoing payments based on a percentage of sales for products featuring the design.
I am happy to consider both options, and I am open to exploring hybrid models tailored to the needs of the project.
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