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Licensing question

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pelpo's picture
Joined: 05/26/2009


I am looking up information on licensing a game. I read about some disadvantages, like:

- it can take a while to get a license. Eighteen months or more is not uncommon.
- It is also not uncommon to enter into a licensing agreement with a company to find that your concept never "goes anywhere"
- Auditing may be necessary to assure proper royalty payments
- Sometimes smaller companies "forget to pay" - 5% of the wholesale price isn't anywhere near what you can make if you self produce and market your item. An item that wholesales for say $7.00, will give you $0.35 cents per unit.
- Licensees may expect royalty free accounting for returns, samples, defects, shipping allowance, discounts and much more
- You are at the mercy of your Licensee for performance
- Licensee will likely change your product- a lot

Does anyone have experience with some of these disadvantages?

Thanks in advance,

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