A fully executed, "A-List"
celebrity licensing contract
is yours to download
Celebrity licensing agreements include a "confidentiality" clause, meaning neither side can reveal the terms of the deal. That's why, when you see a new celebrity fragrance announced, you are never told how much money the celebrity has been guaranteed and what royalty rate has been negotiated. Thanks to some charm and a bit of good luck, we have obtained an authentic copy of a fully executed, A-list, celebrity licensing contract and we are now making it available to you.
When we first read through this Agreement we thought most of the terms and conditions were "standard." It was prepared (we believe) by one of America's top branding and licensing agencies and, although the marketer might not like all the terms that were imposed, this contract struck us as very solid, very professional, very fool proof. Only recently have we learned that not every celebrity licensing contract is as well written (for both sides) as this one. In fact, we have learned that some celebrity licensing contracts out there may be missing key protections seen in our example.
Important issues this
contract helps resolves
- What happens when a big company wants to buy you out? Or if you need to bring in a new partner? [Read paragraph 12.1]
- Who will be allowed to make your perfume? [See paragraph 12.2]
- What territory are you being given? The whole world? A single country? A single region? And will your license give you exclusive rights for that territory? And what rights are you being given? Don't assume anything is understood. You only get what your contract gives you in writing. [See paragraphs 1.3 and 2.1]
- How will the rights to all the creative work you are paying for be distributed after your agreement ends? And what about the rights of the people who do the work for you? [Read paragraph 5.1, Rule 6, and paragraphs 8.1, 8.2, and 8.3]
- Where will you be allowed to sell your perfume? Will you be able to sell online? Will you be able to sell on TV shopping channels? Will you be able to sell to Walmart? [See paragraph 1.11]
And there are other points you will want to explore -- how royalties are to be calculated and paid, insurance you must carry, approvals you will need, your renewal rights, your rights to sell your perfume after the license term has expired. How can you handle inventory surplus and seconds? How will you share liability with the celebrity if someone sues you? What help can you expect from the celebrity if someone knocks you off and kills your sales? And what support in general can you expect from your celebrity? After all, it will be "their" perfume. All of these issues should be resolved in your licensing contract, before you sign.