term license help what is
Meaning of license fee. What is it: the producer/ licensor for the right to distribute or exhibit.

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Definition license fee

LICENSE FEE title: license fee (CRM-IM-IPM) (SAP Library - Glossary)
LICENSE FEE category: Intellectual Property Management (CRM-IM-IPM)
LICENSE FEE explained:

The amount to be paid by the sub distributor/licensee to the producer/ licensor for the right to distribute or exhibit the film(s). There are two types of license fees. The first is the flat sale/fee. This is an amount specified in the contract that is EITHER paid in one payment prior to the release of materials to the sub distributor/ licensee for exploitation of the film(s) OR by a number of payments over time. It is a one-time fee with no additional amount to be paid to the producer/licensor regardless of the actual distribution earnings of the film(s).

The second is the royalty fee. This is the producer's/licensor's share of the film's actual earnings (share of distribution earnings). The royalty fee includes all license fees that are not a flat fee/sale. Contacts normally do not specify that the fee is flat or royalty but refer to them both as a license fee, since the definition of the two types of fees is an industry standard that is well understood. The total royalty fee may consist of one amount or two amounts. If a contract contains an advance or minimum guarantee, then royalty consists of the advance or minimum guarantee portion and the overage portion, which is the amount in excess of the minimum guarantee.

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