Does anyone know what the appropriate
percent is for a Licensing Agent?? Mine
is suggesting 50%, this seems high to
me...

On 12/12/02 3:52:20 PM, Lori Joy Smith wrote:
>Does anyone know what the
>appropriate percent is for a Licensing
>Agent?? Mine is suggesting 50%, this seems
>high to me...

Fifty percent--fairly standard in the gallery world--is also not unusual in the licensing agent world, though it is sometimes possible to find a licensing agent who requires a lesser percentage.  If your agent is "suggesting" the percentage rather than demanding it, see if a lower rate is possible.

The important things to look at in a licensing agent arrangement are the scope of the exclusivity clause, the warranty/indemnity clause, and the termination clause.  Some licensing agency contracts demand their percentage ad infinitum even if you part ways, if the agent found the client in the first place.  

You should also be sure that there are no provisions which give the agent a property interest in your work. Never forget that an agent works for you, not the other way around.

__________________________
Daniel Abraham, Esq.

718-499-4006

DISCLAIMER: Material posted on the Legal Easel™ chatboard discusses general principles of law in response to issues of concern to the illustration community. Nothing in this website or the Legal Easel™ chatboard should be construed to be a substitute for advice of counsel regarding the specific facts and circumstances of an individual case. Laws and their interpretation differ from jurisdiction to jurisdiction. Legal advice addressing a specific situation should be sought from an attorney duly licensed in the appropriate jurisdiction.

Thank you so  much for taking the time to
respond. It is reassuring to know that is a
common percentage. I was a bit
shocked, as he is my current agent and
our agreement  now is for 30%.
I will get a lawyer to look over the contract
when I get it.
Thanks again!

On 12/13/02 5:04:19 PM, Lori Joy Smith wrote:
>Thank you so  much for taking
>the time to respond. It is reassuring to
>know that is a common percentage. I was a bit
>shocked, as he is my current agent and
>our agreement  now is for 30%.
>I will get a lawyer to look over the contract
>when I get it.
>Thanks again!

You did not originally mention that you were already being repped by this person--one assumes for publication rather than product licensing.  To my mind, that fact changes things a bit.

Illustration reps currently get from 25% to 35%, so your agent falls right in the middle of the range.  You have not, of course, discussed the terms of your current agreement with your agent--how long you have been together, the scope of the representation, division of expenses, whether the agreement is in writing or not, etc.--but when I said that 50% was "reasonably standard for licensing agents," that referred to those agents who pursue product licensing exclusively and have specialized contacts in that area, not an illustration rep who has simply decided to try and expand the scope of his/her activity.

Unless your rep has particular expertise, contacts, experience with licensing contracts, or some other sort of track record, the attempt to increase the percentage to 50% when s/he is already repping you seems just a little bit off.

__________________________
Daniel Abraham, Esq.

718-499-4006

DISCLAIMER: Material posted on the Legal Easel™ chatboard discusses general principles of law in response to issues of concern to the illustration community. Nothing in this website or the Legal Easel™ chatboard should be construed to be a substitute for advice of counsel regarding the specific facts and circumstances of an individual case. Laws and their interpretation differ from jurisdiction to jurisdiction. Legal advice addressing a specific situation should be sought from an attorney duly licensed in the appropriate jurisdiction.

Hmmm, that does change things. How
do you suggest I bring this up to him?

He has told me a number of times I am
his "ginny pig" for his ventures into
Licensing. I am not sure about his
contacts, but we have spoken that the
agreement would be so all expenses
would be paid by him.

He is using the analogy of the Gallery/
artist relationship and how ours isn't
much different.

He is a good agent, and I have really
enjoyed working with him so far and trust
and respect him. I do agree with you tho,
that if he is not an actual "Licensing
Agent" I shouldn't be expected to pay the
percentages of one.

Could you reccomend any where I could
educate myself in these matters?

Thank again

On 12/14/02 4:28:48 PM, Lori Joy Smith wrote:
>Hmmm, that does change things. How
>do you suggest I bring this up to him?
>
>He has told me a number of times I am
>his "ginny pig" for his ventures into
>Licensing. I am not sure about his
>contacts, but we have spoken that the
>agreement would be so all expenses
>would be paid by him.
>
>He is using the analogy of the Gallery/
>artist relationship and how ours isn't
>much different.
>
>He is a good agent, and I have really
>enjoyed working with him so
>far and trust and respect him. I do agree
>with you tho, that if he is not an actual
>"Licensing Agent" I shouldn't be expected
>to pay the percentages of one.
>
>Could you reccomend any where I could
>educate myself in these matters?
>
>Thank again

I'm not sure what particular education you are looking for, aside from your own self-interest.  If this agent has admitted to you that he does not have experience in product licensing, that you are his "guinea pig," then he has as much as admitted--though he has not yet agreed--that he is not entitled to the percentage of an experienced licensing agent.  It is up to him to justify why you should pay, in the form of an increased percentage, for the experience of being experimented upon.  

I do not know on what basis your agent has analogized your current relationship to that of a gallery, so cannot comment on it--but the fact that he will be paying expenses for his efforts to expand his effective repping area out of his own percentage is not particularly remarkable of itself; that is what agents do.   If he believes that new expenses will be forthcoming or that there is something that justifies his receiving an increased percentage by virtue of the fact that he is venturing into territory where, being inexperienced, he cannot assure you that the quality of his work up to now can be maintained, it is up to him to explain to you exactly what he believes that something to be.  And just because he has explained it does not mean you have to accept the explanation.

__________________________
Daniel Abraham, Esq.

718-499-4006

DISCLAIMER: Material posted on the Legal Easel™ chatboard discusses general principles of law in response to issues of concern to the illustration community. Nothing in this website or the Legal Easel™ chatboard should be construed to be a substitute for advice of counsel regarding the specific facts and circumstances of an individual case. Laws and their interpretation differ from jurisdiction to jurisdiction. Legal advice addressing a specific situation should be sought from an attorney duly licensed in the appropriate jurisdiction.