The flow of making an offer for a license design is:
Buyer makes a licensing offer and provides all details at the pop-up.
Designer can accept, decline or make another licensing offer. If the designer declines, the buyer will not be able to continue it. If the designers make a counter offer, the buyer can also choose to accept, decline or make a counter offer (Note: The buyer will have 14 days to respond to the new offer before it expires).
When both parties agree with the offer, a transaction terms sheet will be delivered to both parties via email. The designer and buyer can use this terms sheet to finalize the license agreement outside.
60 days after the transaction terms sheets were sent, both parties confirm if the contract was signed or it is still in progress. If they need more time to finalize the contact, they can click "Not yet" to have 60 more days, and if there is no action from any of them, the transaction will be marked autocomplete. Once both parties confirm that it was signed, "one license sold" will appear at the number of sold licenses tag. If the designer can choose "Fell through" on the transaction details page if the contract wasn't signed successfully outside.
After the transaction is done, the designer and the buyer can leave a review on the transaction details page.
After each action completed by the designer, you will receive a notification email at your registered email address. We kindly advise checking your mailbox regularly to stay informed and ensure you don't miss any deadlines.
Demonstration:
Go to your inbox page -> "My sales" and check the designs that have the "Offer made" state. Click one to go to the transaction details page.
You can see the licensing offer from the buyer on the transaction details page. You can click on the link to read their license terms. After reading the buyer's offer, you can accept, decline, or make a counter offer. Once you decline the offer, the buyer will no longer be able to continue this offer. They will need to make a new one. Click "Make another offer" if you want to offer the different price or to change the license terms.
If you don't want to use their company's license terms, a transaction terms sheet made by Patternfield shows up, asking you to fill in. This is our non-binding terms sheet, which establishes a mutual understanding for your licensing agreement. Please note that these terms do not constitute legal advice and we strongly advise that you engage a qualified lawyer to prepare and finalize your license agreement.
Click here to read our transaction terms sheet (Note: This terms sheet does not apply for buyout designs).
You can choose one of the License Fees below:
Flat fee: The buyer would pay a fixed amount for the design. The buyer and designer negotiate to finalize the flat fee.
Royalty with Upfront Advance: The buyer pays an upfront advance to the designer for their work, which is typically a percentage of the estimated total royalty or sales that the design is expected to generate. The percentage of the royalty may vary depending on the agreement between the buyer and designer.
Royalty no Upfront Advance: The artist will receive a percentage of the sales or royalties generated from the use or sale of the design. The percentage of the royalty may vary depending on the agreement between the buyer and designer.
If you choose to make a counter offer, the buyer will have 14 days to response before the offer expires. They can accept, decline, or make another offer. If you accept the offer, the transaction terms sheets will be sent to you and the buyer via email.
You and the buyer use the terms sheets provided to finalize the license agreement outside. You can click "Contract Signed" when you have your contract done.
Note: You and the buyer will have 60 days to complete the transaction after the terms sheets are sent to both parties. After 60 days, if there is no action from anyone, a reminder will be to your email address, asking if you finished signing the contract with the buyer or you need more time. If there is no response from you or the buyer 15 days after the reminder was sent, the transaction will be marked autocomplete.
Once you click the button, a request will be sent to the buyer, asking for their action.
The buyer can confirm that the contract was signed or they need more time to finish it. If they choose "Not yet", the transaction will be extended 60 more days.
If the buyer requests you to complete the transaction (meaning that they clicked "Contact Signed" before you), you will see three buttons, "Not Yet", "Fell through" and "Contract Signed". If you choose "Not Yet", the transaction will be extended 60 more days. If you click "Fell through", the transaction will be automatically cancelled.
If you confirm that the contract was signed, the transaction is finished. You also can leave a review for the buyer.
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