MCPS also collects and allocates mechanical royalties to authors and publishers in the same way as PRS. Although they are allies, they currently serve as separate membership organizations. ]> Here are some problems that licensees should take into account before signing on the points line. Most current licensing agreements are based on the payment of a royalty to the licensee by the licensee. The royalty is a percentage based on a selling price of the products (the wholesale price when the product is sold to the wholesale trade and the retail price when it is retailed). This sounds simple, but negotiating and interpreting royalties often poses many challenges, mainly with respect to the basis of interest rates, the date of payment, advances against royalties, guarantees and auditing. It is important for licensees and licensees to be aware of the problems and understand how certain contractual provisions can affect their balance sheets. The actual royalty rate (the percentage) is generally not a topic of discussion. Each sector has developed certain parameters in which most stores enter.
The type of property granted, such as .B art, celebrity, college, business, designer, character/entertainment, event or sport, often determines the range of royalties (see chart). Hardback fees for the published price of trade books are generally between 10% and 12.5%, with 15% for the most important authors. On Paperback, it is usually 7.5% to 10%, up to 12.5% only in exceptional cases. All copyrights shown below are on the “guarantee price.” The 15% payment to the author may mean that the 85% of the processing and correction fees will be paid to the publisher. Most licensing agreements also deal with the issue of quality. For example, the licensee may enter into the contract conditions that require the purchaser to provide prototypes of the product, mockups of the packaging and even occasional samples for the duration of the contract. Of course, the best form of quality control is usually achieved before the fact – by carefully checking the reputation of the licensee.