It is important that you maintain some control over the nature and quality of the products for sale – remember that the public will identify the product with the tape, which means that if it is dirty or offensive, their reputation suffers (unless, of course, you are not intended to be offensive). In comparison, it is necessary to make quick decisions and provide works of art in a timely manner. In some cases, the artwork for “T” shirts, etc., will be that of the last album cover that will probably belong to their record company. Most record companies allow their artists to use these works for payment to the record company of fifty percent of the cost of the artwork at the record company, and it is useful to include this right in your recording agreement. (You usually have to ask for it – it doesn`t appear in many early recording contracts). It is therefore a good idea to ensure that rights were obtained before the visit began. This clause includes the obligation for the merchandising company to use a copyright reference. If one of the products contains a logo or name for which the group has registered a trademark, there should be an obligation to include a notice of trademark – if there is no such registration, the symbol “TM” may continue to be used, but “R” cannot be used. Here too, the content of this clause is fairly standard, but it should be noted that neither party can cede the benefit of the agreement without the agreement of the other party. A merchandising agreement may include a character, mascot or logo that can be easily recognized by the public. It could also be used for software or other patented technology such as a manufacturing process. These agreements may be exclusive or non-exclusive.
Through a merchandising agreement, you can define the roles and responsibilities of both parties, including the rights to the item you concede. You can define the geographic areas in which the product is sold, the lifespan and financial details such as royalties or payments per unit sold. They can also include quality control settings to ensure that new products are up to snover tobacco. Since there is always the potential for an argument, you should develop a method of conflict resolution in advance. If you have the chance to sell the rights to your creation, or if you have a good idea for new licensed souvenirs or a cost-effective use for a patented technology, a merchandising agreement will help you solve the details. Other names for this document: merchandising contract, merchandise licensing agreement This clause deals with the rights granted to the merchandiser. You will find that the right to sell goods through the fan club and any website is reserved for the band, but if the merchandisers allow it, they will generally insist that the goods be purchased by them.