As a business lawyer, I often get this common question from content creators, “how to license content?”
Sometimes I have a business owner wanting to license their videos, photos, printables, art, and digital products for commercial use.
At other times, I have someone who wants to license their content for non-commercial purposes.
Don’t worry about the legalese – I will break all this down for you below.
Did you know you can actually make money from your content without completely giving away your intellectual property rights?
You totally can with licensed content, otherwise known as syndicated content.
As the owner of your content, you can enter into a license agreement allowing someone to republish a copy of your full article or content in its original form.
Whether you’re producing articles, videos, infographics, or music, protecting and monetizing your content through licensing is crucial.
In this blog post, we’re discussing how to license content, and what all that entails.
I’m also showing you how to use my license agreement template to avoid disputes and ensure people are using your content as originally intended.
Table of Contents
What is Content Licensing?
Content licensing is when someone grants another party the right to use their intellectual property while still retaining the rights in exchange for compensation.
It can include original content you’ve created or sublicensing content.
This licensing is done through a license agreement that defines how the content can be used, reproduced, distributed, and modified.
This could be content such as trademarked material, an online course, music, video, photo, or other similar resources.
It’s a win-win for you and other sites or businesses that need content, as you make more money from it, and they get quality content.
It’s a great way to spread your message and increase visibility while making money in the process, but protecting your licensed content is critical.
For example, as a content creator with a blog, you know that your content is essential for your success because you use content marketing in many aspects of your business, such as:
- Emails
- Blog posts
- Social media posts
- Interactive content
- All kinds of marketing
- And more
Benefits of Publishing Licensed Content
There are also many benefits to licensed content as a licensee. One is that it helps improve your SEO because it provides more pages for indexing, which increases your traffic.
Many companies also find their engagement rates increase with licensed content as long as they’re curating the content their readers want and need. It often performs just as well as the original content.
Using licensed content also helps you publish more content on your site and other platforms when you have fewer resources.
As the content creator and licensor, licensing what you create allows you to make more money from your content licensing and increase your overall revenue.
Best of all, you get paid while retaining the rights to your content (if you choose the right type of agreement; more on that later).
Many businesses love to use licensed content from premium publishers to help supplement theirs and become a reputable source of quality articles.
If you’ve been writing content for a while, then chances are, at some point, someone has stolen your content and reposted it somewhere else.
It’s both frustrating and motivating at the same time, as you know you’ve finally made it when someone steals your content.
You’ve likely built up a content library or blog posts, social media content, resources, course content, and more.
Licensor vs. Licensee
In content licensing, the “licensee” is the person receiving the license or using someone’s content, and the person licensing their content to someone else is the “licensor.”
So if you are the content creator granting the license then you would be considered a “licensor”.
And “royalty” is the payment made to the licensor for the use of their content.
Commercial vs. Non-commercial Use License
A major factor to consider when licensing your content is whether you want to allow commercial or non-commercial use.
Commercial use refers to the incorporation of your content into products or services that are sold for profit, while non-commercial use excludes any monetary gain.
Allowing commercial use can potentially lead to more exposure and revenue opportunities for your content, but it also means giving up some control over how it is used.
Non-commercial use may limit potential revenue, but you retain more control over where and how your content is shared.
It’s important to carefully consider which type of use aligns with your goals and values as a creator before finalizing your license agreement.
What is a License For Content and Why it Matters?
Licensing content allows you to maintain control over HOW your creations are used while also generating revenue.
Whether you’re a blogger sharing travel stories or a business producing educational content, licensing ensures that your hard work is protected legally.
Additionally, it opens up opportunities for collaboration and growth.
Protecting Your Intellectual Property
Your content is your intellectual property (IP), and licensing helps safeguard it from misuse.
Licensing agreements clarify how your content can be used, preventing unauthorized use or infringement.
This legal protection is essential for maintaining the integrity and value of your work.
Generating Revenue Streams
Licensing provides a way to monetize your content.
By granting usage rights to others, you can earn royalties or fees, creating additional income streams.
This is particularly beneficial for small businesses and independent creators looking to diversify their revenue sources.
Enhancing Brand Visibility
When your content is licensed and used by reputable entities, it can enhance your brand’s visibility and credibility.
Collaborations with well-known brands or platforms can introduce your work to new audiences, increasing your reach and influence.
What is a Content Licensing Agreement?
Because our businesses are built on content, using a content license agreement is essential.
A content licensing agreement is a legal contract that allows other brands to legally republish or repurpose your physical or digital content.
It’s also sometimes known as a copyright license and is a great way for content creators to distribute their content across various platforms and extend their reach.
These agreements address the legal aspects of intellectual property use.
They grant other companies or brands the right to use your content in exchange for benefits such as monetary compensation, traffic referrals, or similar.
What kind of content you can include in a License Agreement?
You can license any piece of content for a specific purpose. Some of the common things I see being licensed are:
- Images
- Data
- Software
- Video content
- Art
- Audio or song recording
- Written content and documents like an article, blog post, or caption
- Digital Products such as templates or printables and more!
Using a content licensing agreement like this one ensures you are clearly defining the scope and duration of the license.
Plus, these legal agreements protect everyone involved.
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When Do I Need a Content Licensing Agreement?
You need a license agreement when you want to allow someone else to use your intellectual property such as trademarks, patents, and copyrights for visual art and written content.
When giving third-party permission to use your content, a licensing agreement allows you to retain legal ownership while giving someone else legal rights to use the licensed content as per your terms.
Related Post: 15 Documents Needed to Sell a Business – Checklist
Common Types of Content Licenses
When exploring ways to get paid for your content, content licensing allows you to expand your income possibilities.
You’ll find there are several different types of content licenses you can choose from as the original publisher of your content.
Non-Exclusive Licensing
This type of license grants someone usage rights while allowing you to retain the freedom to grant other brands the same rights.
Allows multiple parties to use the content at the same time.
Additionally, you still have the right to use your own content with no restriction if you use a non-exclusive license.
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Exclusive Licensing
As the name indicates, exclusive licensing gives just the licensee exclusive rights to your licensed content.
That means you can’t give the same rights to other people, including yourself, for the duration of the license.
Of course, due to the exclusivity of the agreement, you can charge more money when using this type of licensing contract.
Sub-Licensing
Occasionally, a licensee may want to sub-license your content, which means granting additional people use of the content.
If you permit this, you must add a sublicensing clause to your contract terms.
Sole Licensing
This type of license falls between non-exclusive and exclusive content licensing.
The biggest difference is that you, as the original creator, are still free to use your own content.
Single-Use License
This allows the licensee to use the content only once.
Perpetual License
This type of license allows ongoing rights to use the content for an indefinite period until terminated.
As the owner of the content, you need to understand the different types of licenses to make sure your License Agreement is correctly reflecting your wishes!
Otherwise, you risk losing lots of money with open licenses.
Creative Commons Licensing
In addition to traditional licensing, another option for content creators is Creative Commons licensing.
Creative Commons licenses are public ones that content creators use to allow the free distribution of their copyrighted content.
This type of license allows creators to retain copyright while also giving others the right to use, distribute, and modify their content under certain conditions.
The Creative Commons License is also known as a CC license, and there are several types of Creative Commons licenses, each varying in how the work can be changed, redistributed, and used.
The different types of licenses you use depend on your content and goals for its usage, which are important considerations.
This will help you decide on the licensing fees, how much control you have over the content and the revenue you earn from it.
So, scheduling a call with a lawyer is key to making the right decision.
6 Steps to License Your Content
Licensing your content involves several steps to ensure a smooth and legally sound process.
Follow these steps to secure your content and maximize its value.
Step 1: Identify Your Content
Start by identifying the content you want to license.
This could be articles, videos, images, music, or any other form of digital media.
Make sure you have clear ownership and rights to the content before proceeding.
Step 2: Choose the Right License
Select the type of license that aligns with your goals.
Think about factors such as exclusivity, usage rights, and duration.
An exclusive license may offer higher compensation, but a non-exclusive license can reach a broader audience.
Step 3: Draft a License Agreement
A well-drafted license agreement is crucial for protecting your interests.
That’s why it’s a good idea to grab our lawyer’s written License Agreement template here.
This will save you valuable time and money.
Step 4: Negotiate Terms
Engage in negotiations with potential licensees to reach a mutually beneficial agreement.
Be open to discussing terms and making adjustments to accommodate both parties’ needs.
Clear communication is key to avoiding misunderstandings.
Step 5: Finalize the Agreement
Once terms are agreed upon, finalize the license agreement and ensure both parties sign it.
You should also think about consulting with a lawyer to review the document and address any legal concerns.
This step is crucial if you are using your own License Agreement.
You’d want to make sure it will be legally binding and enforceable.
Step 6: Monitor Usage
After the agreement is in place, monitor how your content is being used.
Ensure the licensee adheres to the terms and conditions.
Regularly review the arrangement to address any issues or make necessary updates.
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Understanding Your Intellectual Property Rights
It’s important to understand the rights you’re retaining and giving up that could be critical to your business.
As the primary rights holder of your licensed content, you get copyright protection while still licensing your content to make more money.
One of the greatest benefits of a licensing contract is that it provides a legal framework to protect your intellectual property rights.
As the content or copyright owner, this agreement offers you legal recourse in case of any infringements or disputes.
It also serves as clear evidence of your ownership as well as defining the terms of use.
You may also have heard about public domain content and be considering that because they are free open licenses.
However, you should know that copyright laws do not protect any public domain content.
What to Include in a Content Licensing Agreement
Creating a license agreement from scratch can be daunting.
A proper licensing contract should include MANY important legal provisions such as:
- The type of license given.
- Conditions of use for the licensed content
- The scope of the content license
- Identification of the licensed content
- Any restrictions or rights to repurpose, amend, or edit the content (For instance, you could let someone recopy and distribute your content but prevent them from making adaptations (derivative works)
- Whether the licensee must state the source of the content
- The different platforms where the content can be used (YouTube, podcast, the licensee’s website, etc.)
- The duration of use
- Exclusivity to the licensed content
- Payment (how much and is it a fixed fee or royalties (recurring fee)
- Whether the license is transferable or sublicensable
- Whether you can revoke the license in case of health, insolvency, misuse, payment default, etc.
- and more!
License Agreement Template (Written by a Lawyer)
Fortunately, as a lawyer, I have a comprehensive license agreement template that you can easily use.
As a business lawyer, I have helped over 100,000 entrepreneurs protect their businesses, but I have also witnessed the devastation lawsuits and legal issues can bring.
When I was younger, my father was sued by an independent contractor for $90,000 because he didn’t use a freelance contract.
This wiped out his business, and we all suffered as a family. This lawsuit is what motivated me to go to law school and become a lawyer to help other small business owners.
I don’t want that for you, and that’s why I created this affordable licensing agreement template.
When it comes to making money from your content creation, content licensing agreements are some of the most important legal documents you can have.
And no worries, as I’ve taken care of all the legalese for you to ensure that each important thing necessary to protect your business is included.
All you need to do is simply fill in the highlighted blanks of this license agreement template, and you can have it customized and ready to use in 15 minutes or less.
Using a free template you find online is a horrible mistake.
But don’t just take my advice; hear from these 50+ entrepreneurs who don’t trust free legal templates.
And check out this YouTube video on why free legal templates suck.
Be sure to subscribe to my YouTube channel for more legal and blogging tips.
FAQs on How to License Content
Below are answers to common questions about how to license content.
How do I license my product?
Follow the 6 steps outlined above but here are some more things to keep in mind.
- Determine the type of content license you want to extend to the other party – exclusive or non-exclusive license. You’ll want to choose the right license type based on what you’re licensing and your business goals.
- Second, it’s important to know that you are in charge as the copyright holder if you’re licensing your content to someone else. Negotiating the terms is essential. These terms include:
- The compensation- The geographic area where the content can be used
- Any restrictions to the licensed content
- The license length.
- Money talks! You want to negotiate the royalties or compensation you’ll receive from licensing your content and copyrighted material. Your options include:
- Net royalties
- Gross revenue royalties
- Minimum guarantee royalties
- Unit royalties
- Set up the transfer of some of your intellectual property rights, like the use of trademarks you own, copyrighted work, or other elements.
- Draw out your content terms clearly, outlining the terms and conditions of your license agreement.
What is an example of licensing?
An example of content licensing would be:
- Sports team logos (to people using them in team apparel and other things)
- Songs
- Technology and software – A software company giving a company rights to use their computer software
- An artist giving a book publisher permission to use a piece of artwork on a book cover.
- A YouTuber gives a license to use his videos
There are many ways to license your content and earn money from it.
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How do you license a copyright?
While a copyright exists the moment you create your content, it may be best to register it with the U.S. Copyright Office.
This registration is voluntary, but it can help a content owner who wants to license their work or sue for copyright infringement.
You can always schedule a call with me to have me file your copyright.
Even if your content is not copyrighted, you can still license it using this License agreement as long as you are the original owner of that content.
How to set up a licensing agreement?
The easiest way to create a licensing agreement for your licensed content is to use our comprehensive licensing agreement template.
Your contract must contain several important legal provisions that could be missing from free templates.
Our licensing agreement template is easy to customize in 15 minutes or less and protects your intellectual property rights and financial interests.
Plus, you’ll have peace of mind knowing this template is actually written by a lawyer so it covers all your legal bases.
Final Thoughts on How to License Content
Now that you’ve read this post, what do you think? Are you ready to make money licensing your content?
Let me know in the comments below.
Considering all the aspects of granting legal permission for other brands to use your content can seem overwhelming.
However, using a licensing agreement ensures your legal and financial interests are protected.
It allows you to grant the use of your content to someone else for monetary benefits or something similar. It can open up new revenue streams to ensure you always have money coming in.
To get started, consider the type of licensing you want to use and download this license agreement template.
It is a Microsoft Word document, and you get access to all future updates for free, meaning you can use it repeatedly.
Follow these best practices and guidelines for content licensing that we covered in this article, and you’re all set to earn more money from your content.
Related Posts to How to License Content
In addition to learning about how to license content, you should join my Facebook group here to connect with me and other entrepreneurs.
This blog offers many legal tips for entrepreneurs here.
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