{"id":4928,"date":"2016-04-04T10:47:49","date_gmt":"2016-04-04T15:47:49","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/intellectual-property\/art-licensing-should-you-assign-or-license-your-work.html"},"modified":"2024-05-22T02:16:50","modified_gmt":"2024-05-22T07:16:50","slug":"art-licensing-should-you-assign-or-license-your-work","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/intellectual-property\/art-licensing-should-you-assign-or-license-your-work.html","title":{"rendered":"Art Licensing – Should You Assign or License Your Work?"},"content":{"rendered":"\n
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Art Licensing – Should You Assign or License Your Work?<\/h1>\n
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\n By Taylar-Simone McCants, J.D.<\/a> | Legally reviewed by Amber Sheppard, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Assignments and Licensing Overview<\/h2>\r\n

"Should I assign my work or license it?"<\/p>\r\n

As a small business owner looking to make money from your creative works, you may wonder about the best route. One of the best ways to make money as a startup artist is to execute licensing agreements or assign your work<\/a>. Although many people use these terms interchangeably, there is a tremendous difference between licensing and assigning your art.<\/p>\r\n

Assignments<\/h3>\r\n

An assignment<\/a> is when you hand your art over \u2013 for good. Assigning your art to someone else gives them full ownership of it. They can do with it as they please. The assignment holder can seek legal recourse and remedies against others for misuse of the art. There are plenty of good reasons to do this. But if you’re going to give your art away for good, you should pay close attention to what you’re giving away.<\/p>\r\n

Licenses<\/h3>\r\n

A license<\/a> is like renting your art. It gives someone the right to use your art for a limited time and limited purposes. However, you, the artist, retain ultimate ownership of your art. The rent payment is usually a lump sum or royalty fee based on sales or revenue. The license holder cannot seek legal recourse or remedies against another company for using the art. Once the license expires, the licensee can no longer use your art. Licenses are great for partnerships because they allow you to expand your reach and exposure.<\/p>\r\n

Unfortunately, many companies use terms like "exclusive licenses" for agreements that are assignments. Read the fine print carefully. Know exactly what you are and aren’t giving away.<\/p>\r\n

Reversions<\/h2>\r\n

A reversion<\/a> is when something happens that causes the rights to your artwork to spring back, or return, to you. Most reversions occur in licensing agreements<\/a>. You can grant a company a license to use your artwork for a set period of time. Then, when some predetermined event(s) happen, those rights terminate for that company. Your rights then flow back to you.<\/p>\r\n

Here’s an overview of how to spot and deal with reversions in an agreement:<\/p>\r\n

Finding the Reversion<\/h3>\r\n

When trying to spot a reversion in an agreement, look for clauses entitled "Term," "Termination," "Reversion," "Grant of Rights," "Commercialization," or "Exploitation."<\/p>\r\n

Beware of Perpetual Licenses<\/h3>\r\n

A license, by nature, must end. You’re only allowing the person or company borrow your art. Yet some people and companies use tricky language like "perpetual license." Perpetual means never-ending. When this term is used in a licensing agreement, the other party creates an assignment of rights in your art that will never revert back to you.<\/p>\r\n

Figure Out When It Reverts<\/h3>\r\n

Once you’ve spotted the reversion, understand exactly what triggers it. Common reversion triggers include:<\/p>\r\n