Should I Submit Fabric Designs to Vida?

Dear Rich: I built my business on printing my designs on fabric and making stuff. Now there's a handy service (VIDA) that makes stuff with your uploaded design and sells it to others. That makes it easier. I am just leery of any "catches." Can you look at the licensing agreement?
VIDA is a socially responsible e-commerce company, launched in 2014, that connects designers with manufacturers around the world and sells the resulting products at its site. Artists and designers submit original fabric designs which, if accepted, are converted to fabric and used for apparel and housewares merchandise. The designer receives a 10% royalty for each sale.
Nonexclusive and Exclusive Licenses. According to Vida's Designer's Submission and Licensing Agreement, by submitting your designs, you give Vida a nonexclusive license to reproduce  your design primarily for marketing and promotional purposes.  Once an order is made, you give Vida exclusive rights to sell your design in the designated categories (classes of goods that you selected when you submitted your design). (Here's an overview of the merchandise licensing process.)
How does Vida's license stack up? 

• Royalty -  Artists receive 10% of net revenue (gross revenue minus discounts, shipping and similar expenses). Fabric design royalties typically range between 2 and 10%. 
• Length of licenses -  You can terminate the nonexclusive license thirty days after providing notice. You can terminate the exclusive license within one year after providing notice. Most fabric licenses are for 1-3 years with one year renewable terms.
• Limitations - The exclusive license is limited to the designated categories that you selected when you submitted your design. If you don't want Vida to have exclusive rights for certain goods, don't select them as designated categories.
• Reliability of the licensee - The company appears to be well-funded and has been around for almost three years (a good sign for a start up). 

Though the agreement is relatively friendly to artists, there are some details we are not wild about -- for example, the ability of Vida to freely assign your exclusive rights. You can compare Vida's agreement with a model license agreement and explanation.

Can I Say "Life is Good" on Zazzle Products?

Dear Rich: Could someone register a phrase as a brand name and not let anyone else use that phrase? For example: I created a design using the words "Life is good when the fish are biting." I posted it on Zazzle.com  and a couple days later they took it down saying I may be infringing on someone's intellectual property. I asked who it was and what proof did they have. They gave me this website address: www.lifeisgood.com. I thought the words "life is good" was in the public domain and no-one could own those words and/or prevent others from using that phrase in a sentence. Can they do that or are they trying to bluff me?
We don't think they're trying to bluff you. You can freely use "life is good" in a song lyric, or as the title of your book or for other copyright purposes, but you'll run into problems using it for trademark purposes on merchandise like t-shirts, hats or ceramic cups.
How two brothers cornered the "life is good" marketplace. Life is very good for the two brothers who own Life is Good (LIG), a Boston-based t-shirt and licensing company. The brothers were struggling t-shirt manufacturers until they stumbled on their bright-sided branding mantra. Nowadays LIG generates $100 million stamping their optimistic message on greeting cards, coffee, pet supplies, frisbees, cups, musical festivals, and a whole bunch of other products and services desired by an ever-hopeful ever-consuming world. Along with this licensing and expansion, LIG has made a serious investment at the U.S. Patent and Trademark Office where LIG registrations have been issued in dozens of classes of goods including backpacks, dog leashes, luggage, bed blankets and towels, children's and baby clothing, toys, etc.
Bottom line department. Other companies have acquired trademark registrations for "Life is Good" (and its variations) for products or services not exploited by LIG. Further, you may even be able to prevail in a dispute by demonstrating that consumers are not confused -- that is, your phrase is distinguishable. But practically, we think LIG has the legal firepower (and legal presumptions) on its side. Keep in mind, that LIG has even become embroiled in disputes with people manufacturing "Life is nutz," "Life sucks" and "Life is gay." As much as we hate to see the English language cordoned off by manufacturers, we think you should consider moving on to another line.

Do I Need a Lawyer to License Crafts?

Dear Rich: I'm a crafts artist and I create fantasy animals and sell them as sculptures and prints. A company wants to license two designs for fabric for use in children's products. They're asking me to sign a license for three years. According to the contract, I can still sell sculptures and paper prints. I just can't do clothing. bed sheets and similar fabric items. I think I understand the agreement. I'd hate to blow most of my advance on a lawyer if I don't need one. But people are telling me I should see an attorney. What do you think?
That's a tough call. We talk about licensing at our crafts law website (where we also offer a sample license agreement for purposes of comparison). If you can't make it over there, here's what we suggest: If you’re a savvy, confident businessperson capable of reading contracts -- and this is especially true if the other side provides a concise easy-to-understand agreement -- you can probably negotiate your own license.  If legal agreements just make you nervous, and a company wants to license your best-selling or signature work, you might as well secure some backup and retain a knowledgeable licensing attorney.
Watch out for "assignments." One warning flag that you might need an attorney is if you see the word “assign” or "assignment" in the proposed license agreement. An assignment means that you are selling legal rights in a work to someone else which is far different from the “rental” arrangement of a typical license. If you assign all your rights in a work, then that’s it—you can’t reproduce and sell that work any longer. There may be an occasion where an assignment makes sense—for example, sometimes you can assign all rights for the term of the license and they will be assigned back to you after it’s over, or you may receive a large sum of money for an assignment. Nevertheless, if the licensee seems to be angling for an assignment, have an attorney review the draft agreement to guarantee that you’re not permanently giving up all rights.