Videomaker – Learn video production and editing, camera reviews › Forums › General › Video and Film Discussion › Big question about licensing fees › Happy, Congrats on the off
Congrats on the offer. Now you are seriously getting deep into distribution rights/entertainment law territory. I cannot stress your not going any further with this without an experienced entertainment lawyer to help you hash out an agreement both you and your potential distributor can live with. Usually the deal goes down as an upfront fee for the license based upon x= years + royalties percentage based upon net or gross sales to be paid quarterly to annually. The lawyer will be able to help you hash out the details and keep an eye out against infringement. You’ll also need a CPA to keep tabs on where the money goes and negotiate regular audits (on occasion money owed you may get ‘misplaced’.) It’s all very exciting until you have to throw down on the business side of production. You do want to cut a fair deal for both sides, but you also want to make sure you don’t get ripped off either.