tispr File Cabinet: Royalty Agreements Form [Legal Illumination: Part 4 of 4]
Playing by your own rules means a few things: it allows for a greater freedom, greater flexibility, and being able to turn what you love into what you do. While those are all the best aspects of being a talented individual and taking advantage of the gig economy, sometimes the legality of it all can be difficult to wrap your head around. Never fear, tispr is here! This is our last in our Illegal Illuminiation series, designed to guide you through the four essential types of legal documents. This week, let’s figure out Royalty Agreements.
If you’re a creative professional, learning the ins and outs of Royalty Agreements is essential. Royalty Agreements can seem really daunting but, basically, they’re just setting forth the guidelines for whether or not you receive compensation for your work after the initial transaction. Where and how can your client use the work you’ve made for them? Will you receive compensation for use of the work after hand-off? If so, how much will you make? Is there a cap on the amount of money you can make? Do you retain intellectual property rights? As a creative, these are all exceptionally important questions. Having a royalty agreement signed both by the talent and the client can clear up a lot of issues down the road.
Why use a Royalty Agreement? It’s pretty simple. It sets forth the creative’s rights and claims to the work, and it makes sure that, in the long term, both the client and the talent feel good about their work together and no royalty disputes arise. It’s just good business to put it all on the table to begin with, and a royalty agreement locks it down.
Our legal team is finishing up the details of our free Royalty Agreement template, so check the blog tomorrow!