How to License a T-Shirt

The royalty structure of licensing contracts may depend on exclusivity.

Making a living as an artist is no easy task. One option is to license a design to be printed on T-shirts, which can generate a steady cash flow and put your artwork in the public eye. If you are an artist, you can do this by finding a T-shirt producer and negotiating a contract which states the terms and conditions under which the image is authorized for use.

Instructions

Preparation

1. Prepare samples of your design. Put together a portfolio of your work along with your resume and business cards. Have an electronic version of your portfolio that you can use for online networking.

2. Find a T-shirt producer with whom you want to work. Contact your local Small Business Development Center to find referrals to producers. Attend apparel and clothing trade shows and pitch your design. Search Thomas Register (thomasnet.com) for T-shirt manufacturers.

3. Discuss your business vision with your potential licensing partner. Talk about the scope of your ambition and what you are hoping to achieve both financially and professionally. Invite your partner to share his vision and to talk about the resources he is willing to commit to the project.

Legal

1. 

   Your attorney should review and make necessary changes to the contract.

   Meet with an attorney to discuss the potential partnership. Find out about your liability in the partnership, as well as your options for litigation if your partner fails to keep the agreement.

2. Prepare a licensing contract, with the guidance of your attorney. Name the partners bound by the agreement (you are the licensor and your partner is the licensee). Stipulate which image is being authorized for use, and what constitutes a licensed product. State whether the licensee is being given the sole right to reproduce the image (exclusive use), or whether you are retaining the right to license the image to other T-shirt producers (non-exclusive use). Specify the terms of sublicensing, which give the licensee limited authority to license the image for use by other producers.

3. Identify the territory within which the image(s) may be used. State whether there are geographical restrictions on where the T-shirts may be sold.

4. State the date upon which the authorization becomes effective, and any expiration date. Write the terms of any renewal, including how many times the authorization may be renewed and for how long.

5. Identify the terms under which royalties will be paid, including when the T-shirts will be considered to have generated revenue. Give a definition of net sales, and state the percentage which will accrue to you as the artist. Have your attorney review the contract, then sign it.

Tips & Warnings

• Federal copyright law protects your art from unauthorized reproduction as soon as you create it. You may register your copyright with the Library of Congress Copyright Office, which creates a public record of your artistic property and is required before you can sue for infringement.

References

• "Getting Permission: How To License & Clear Copyrighted Materials Online & Off"; NOLO; Rich Stim; 2004
• Empty Easel; Copyright Information for Artists: How Copyright Laws Protect Your Art; Dan; March 2008
• The Entrepreneur Gazette; How to Find a Manufacturer; Sarah Shaw; February 2010

Resources

• Thomas Register: Apparel
• U.S. Copyright Office: Form Visual Arts
• SBA.gov: Small Business Development Centers