DRAFT - SPECIAL COMMERCIAL CONTRACT

Posted 3 months, 6 days ago by Carnivox

I WAS REALLY HAPPY WITH THE MASSIVE POSITIVE RESPONSE FOR THIS IN MY PREVIOUS BULLETIN!!!
This is a contract that will be bound to SOME of the designs that I put up for sale, selling the design rights as normal but allowing me commercial rights to the design, and providing the design buyer with various benefits as well!!
Thank you everyone for your input on this contract (especially Dsadragon), I hope I’ve made it clear, fair and professional!

If you wish, feel free to leave any feedback / criticism, I really appreciate it!



SPECIAL COMMERCIAL CONTRACT (draft)

Designs bound by the “special commercial contract” will be marked in the ‘Ownership’ tab of a design on toyhou.se.

By owning, buying, trading for or receiving a design with an active “Special Commercial Contract” you thereby agree to the conditions described in this document. CARNIVOX retains commercial rights to designs bound by this contract regardless of whether the design rights are transfered, and new owners are entitled to the benefits listed below!


1. DESIGN RIGHTS

In this special commercial contract, from now on called the “contract,” the design holder will receive the design files and the rights to use the design in every way except commercially. (This is true with any design purchased from CARNIVOX, commercial license can be purchased at any time, please see point 7 of terms of service).

This contract gives CARNIVOX commercial rights to the design in question. Commercial use in this contract is described as production of physical merchandise (such as keychains, prints, stickers, plushes, etc.) for 100% profit for CARNIVOX.
CARNIVOX will retain commercial rights when the design rights are transferred to a new owner, see point 4.


2. BENEFITS FOR DESIGN HOLDERS

A. Any and all digital artwork produced by CARNIVOX of the design for merchandise will be gifted to the design holder in the form of a digital image file. The Artwork will be added directly to the character’s Page on toyhou.se.

B. Design holders can purchase a commercial license of the character at 50% the current price. In this instance, both CARNIVOX and the design holder have the right to use the character commercially.

C. Design holders are entitled to one (1) unit of any piece of merchandise produced for commercial use of the design, at the expense of CARNIVOX. This is only valid for merchandise that is made available during the period of ownership of a given design holder.
Note: new design holders are not entitled to merchandise produced prior to their ownership.


3. CHARACTER REPRESENTATION

All artworks and merchandise produced will be made in the image of the original design in CARNIVOX’s artwork. At the time of sale, the original concept art of the character and any flavour text and/or backstory supplied will be the subject of the merch artwork.
Note: Owners of CARNIVOX’s designs are always welcome and encouraged to add details or create new personalities, backstories and generally change the character however they like! Design Holders may also make small modifications to the design concept. (Editing of CARNIVOX’s artwork is prohibited according to point 1 of their Terms of service, please contact for edits)


4. DESIGN OWNERSHIP TRANSFER

A. CARNIVOX will maintain commercial rights to the design regardless of who owns the design rights. The design rights may be traded / resold / gifted freely according to the terms of service, CARNIVOX will retain commercial rights to the design bound by the contract in all scenarios.

B. This contract will remain active upon design right transfer, new owners are entitled to all benefits described in point 2.


5. DESIGN HOLDER REPONSIBILITIES

a. It is the responsibility of the design holder to notify new potential owners of this contract before the design rights are transferred. A link to this document will be in the “ownership” tab of any design bound to this.

B. It is the responsibility of design holders to notify CARNIVOX if the design rights are transferred to a new owner.

C. It is the responsibility of any new potential design holders to be aware of this contract before acquiring a design bound by this contract. 


6. TERMINATION OF CONTRACT

CARNIVOX may terminate this contract at any time. CARNIVOX is the only party who can relinquish commercial rights and terminate this contract. In the case of termination, design holders will be notified, and all benefits and conditions of this contract will be voided.

Comments


I feel like the character owner should get a portion of profits like how merchandise usually works between two companies. Probably something very small like 5% since you are doing all the work. This might just be a me thing but it doesn’t make sense for someone to pay you for a design and you also make more profit from said design. Not trying to hate or anything, I love the concept of a contract like this ^^

Hey thanks for the feedback!

Typically companies will provide royalties to artists or creators who are licensing their products to said companies! When I work with plush companies I get 35% of net profit for example. 

In this instance however, I am the designer, and I would keep 100% of my profits! but of course I encourage design holders to purchase design rights cheaper to make profit of their own!

Edit: another reason to avoid this would be that buyers might think of the design as an investment? where they would be getting reimbursement in the form of royalties! I don’t want my buyers to be concerned about me selling merch that they can get royalties. 

I definitely agree with the point made in the edit! Maybe have something like a “harassment clause” where if the characters owner bugs you about making merchandise they forfeit all rights to royalties or the contract is terminated?

Ohh that’s actually a really good point, yeah I should make it clear that all merch is solely to my own discretion, and design holders can certainly pitch ideas but I will decide what I invest time and money in!!

Thanks so much for pitching in, I’ll fix that into the contract!

This looks so exciting :Oc I was definitely playing around with hypothetical merch ideas for the Ice Cream Scoops Dino that you designed - I've been so happy to own them!!! I will hopefully be able to pursue it eventually once my classes get less busy; I'm glad you also thought of this <3