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Alchemy Carta Ltd., Hazel Drive, Narborough Road South, Leicester, LE3 2JE England.
Telephone: +44 (0)116 2824 824 Fax: +44 (0)116 2825 202 Email: kayson@alchemygroup.com

www.alchemygothic.com : www.alchemygroup.com/licensing.htm : http://artlibrary.alchemygothic.com/

Licensing Proposal Guide


Hopefully, this will be a helpful summery about Alchemy license deals and will provide an informal overview of what would be expected in any proposal…

The Alchemy Origination Department are the creators of all the original material known as The Property, (see * below). Alchemy is legally entitled to license the use of this Property and remains the exclusive copyright holder.

Alchemy 1977’ is Alchemy’s own brand name and, for licensing purposes, ‘Alchemy Gothic’, ‘Alchemy England’ and ‘A7 - Alchemy Licensed Designs’ are all brand names and trademarks of Alchemy representing their distinctive, gothic-style designs, characters and artwork, etc. All license deals for products made under license to Alchemy will be allocated one of these brand names, as deemed appropriate by Alchemy.

Alchemy’s images can be viewed online in the Alchemy Art Library: http://artlibrary.alchemygothic.com and products in the current Alchemy 1977 catalogue at: www.alchemygothic.com.

Alchemy Carta Ltd., the Licensor, is fully and actively supportive of all of its Licensees. Alchemy’s Origination Department will do all that is reasonably possible, and in good time, to advise and work with the Licensee, providing them with all appropriate images/designs, etc., prioritizing speedy approvals and helping to meet their marketing deadlines.

Royalty reporting is always done Quarterly (31st of March, 30th June, 30th September & 31st December), and the Intended Sales Start always begins and ends on one of these Quarters.

An Alchemylicensing proposal should always include these principle deal points:

Product Type/Purpose: (e.g. mobile phone downloads / posters / T-shirts / watches, etc) Territory: (e.g. UK only / EU & North America / China & HK, etc)
Exclusivity: (e.g. None, or 'Exclusive for Product, Channel, Term & Territory', etc)
Channels of Distribution: (e.g. mail-order / standard retail / distributor / online, etc)
Term**: (e.g. 2 Years, [i.e. 8 x Quarters])
Royalty Rate: (in %)
Guarantee: (USD$/€/UKŁ ?,000.00; minimum guaranteed annual royalty)
Advance: ($/€/Ł ? One-off payment, usually 50% of the annual guarantee)
Contract Start Date**: (e.g. 3rd Quarter '06)
Intended Sales Start: (e.g. 4th. Quarter '06)

** Initially, an extra few weeks may be added to the term for product development and marketing.

The more ‘demanding’ the proposed terms, (i.e. type and number of Products, size of Territory, level of Exclusivity, length of Term, etc), the higher the Guarantee (and Advance) would have to be to secure it. ** Exclusivity, of course, would deprive Alchemy themselves and their other potential Licensees of any chances to exploit such commercial opportunities for the duration of the Term.

Other important elements of the license will include:

Sell-off: A sell-off period, (usually 90 days), will be permitted from the termination of an agreement. Any remaining stocks after this date will only be disposed of by the written permission of The Licensor.

Accounting: Quarterly reports/statements are required and are submitted to the Alchemy Accounts Manager, and all due royalties paid within 30 days of those dates, directly into our bank or to our Leicester address.

Marketing, Branding & Trade Marks: Each licensed product must be clearly and visibly promoted and sold under brand name/trademark/logo allocated by Alchemy and agreed in the License. Also, an approved copyright line and a correct and complete title for the image, character or model when appropriate. Prominent branding should also feature in all relevant packaging, POS, signage and promotional media.

Approvals: All products must be fully and finally approved by Alchemy, (The Licensor), before ever going into production. Each final product has to be physically sampled-to and fully approved in writing by The Licensor before any goods are offered for sale or shipped.

Licensor’s Samples: An agreed number of archive/display copies of each approved product must be sampled to The Licensor in the UK within 30 days of release.

Renewal Option: Subject to both parties being satisfied, The Licensee will always have the option and the first refusal to extend a successful license to a further term, by negotiation.

*The term ‘Property‘, (short for Intellectual Property), means any of the collections and brand names, (Alchemy Gothic, Alchemy 1977, Alchemy England™, A7, Alchemy Masque, Alchemy Spirit, etc.), and all that they represent, (including original concepts, characters, names, storylines, art and illustrations, designs, drawings, models, logos and trademarks, etc). All such Intellectual Property is produced by Alchemy’s Origination Department and belongs solely to Alchemy Carta Ltd., the Licensor, who bears full and legal responsibility for the Property’s originality and authenticity. This Property will always remain the exclusive copyright and property of Alchemy Carta Ltd. England.

I hope that this is reasonably clear and helpful and if you should have any queries at all, please do not hesitate to contact me at any time.

Geoff Kayson

Designer/Licensing & M. Director.

Email: kayson@alchemygroup.com

Telephone: +44 (0)116 2824 824

Mobile: +44 (0)7968 726 715

Fax: +44 (0)116 2825 202


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