1
Identify both parties with their legal entity names
Enter the licensor's and licensee's full legal names, entity types, and principal addresses. Confirm the licensor's name matches any existing copyright registration for the work.
💡 If the licensor is an individual creator rather than a company, state whether the copyright is registered in their personal name or a business name — mismatches create enforcement gaps.
2
Describe the licensed work precisely in Schedule A
List the work's title, medium, format, creation date, and copyright registration number if applicable. For collections or series, list each work individually rather than using a blanket description.
💡 Attach a physical or digital copy of the work as an exhibit where practical — courts treat this as the definitive reference if a scope dispute arises.
3
Define the scope of the license clearly
Choose exclusive or non-exclusive, specify the permitted uses (reproduce, distribute, publicly display, adapt), set the territory (worldwide or named countries), and state the duration. Address each dimension — a license that is silent on territory is generally interpreted as worldwide.
💡 List the specific formats and channels the licensee may use — print, digital, broadcast, social media — to prevent scope creep into channels you did not intend to license.
4
Set the fee and royalty structure with defined terms
Enter the upfront fee amount and due date, the royalty rate and the revenue base it applies to, the payment frequency, and the currency. Define 'Net Revenue' or 'Gross Revenue' in the definitions section before referencing it in the payment clause.
💡 Include an audit right allowing the licensor to inspect the licensee's sales records once per year with 30 days' notice — this is standard in music and publishing and prevents under-reporting disputes.
5
Specify attribution and credit requirements
Write out the exact credit line the licensee must use, the placement requirements (e.g., directly adjacent to the work, in the copyright notice, or in closing credits), and whether digital works require a hyperlink back to the licensor.
💡 Require that attribution survive any permitted sublicenses — without this, sublicensees may strip the credit when they further distribute the work.
6
Address sublicensing and assignment rights
State explicitly whether the licensee may sublicense or assign the rights, and if so, under what conditions. If sublicensing is permitted, require the licensee to flow down all material obligations and remain jointly liable for sublicensee breaches.
💡 If the licensee is a platform or distributor, anticipate that they will need to sublicense to end users — draft the sublicensing clause to permit this specific use without opening up broader rights.
7
Define the term and termination triggers
Set a specific start and end date, or state that the agreement runs until terminated. Specify the cure period for a material breach (typically 30 days), and include a wind-down provision allowing the licensee to sell off or transition existing inventory or distributed copies.
💡 For digital products, define 'cease use' precisely — does it mean deleting all hosted copies, removing app store listings, or disabling active user accounts? Ambiguity here causes post-termination disputes.
8
Sign before any use of the licensed work begins
Both parties must sign the agreement — and the licensor must countersign — before the licensee uses the work in any way. Using the work before signing creates an implied license that may be broader than the written terms.
💡 For exclusive licenses, consider recording the agreement with the relevant copyright office (US Copyright Office, for example) — this provides constructive notice to third parties and strengthens enforcement.