Template - Special Commercial License Agreement

Special Commercial License Agreement

Author & Licensor: Ivan Bilous
Licensee: [Company official name or individual name]
Contact e-mail: [Licensee’s e-mail]
Licensed Designs:

  • [Design 1 – link]
  • [Design 2 – link]
  • [Design 3 – link]

1. Overview

This Special Commercial License is:

  • Non-exclusive – the licensor may grant the same rights to other licensees.
  • Non-transferable – the licensee may not sell, give, or otherwise transfer the license to another person or company.
  • Revocable – the licensor may terminate the license if the licensee violates the terms of this agreement.

The license applies only to the specific designs listed in the Licensed Designs section above.
The license does not transfer copyright or ownership of the designs. All rights remain the property of the author, Ivan Bilous.

2. Financial Terms

  • Initial Payment: [Amount in USD] – payable before license activation, not less than the cost of the Starter License for each selected design. This payment may be waived if the licensee has previously purchased the design. The exact amount will be specified in the final proposal.
  • Quarterly Royalty Rate: [1–5%] of gross sales revenue from the licensed designs (rate determined in the final offer).
  • Minimum Quarterly Royalty: [Amount in USD] – payable even if no sales are made.
  • Currency: All amounts are in United States Dollars (USD).
  • Payment Method: Will be specified in the final proposal (can include bank transfer, PayPal, or a custom listing on the website).

Payment Schedule:

  • For sales in January–March → payment due by April 15.
  • For sales in April–June → payment due by July 15.
  • For sales in July–September → payment due by October 15.
  • For sales in October–December → payment due by January 15.

The license remains valid only while quarterly payments are made in full and on time. If payment is not received, the license is automatically suspended until all outstanding amounts are settled.

3. License Scope

  • The license covers only the designs listed in the Licensed Designs section.
  • The licensee may manufacture and sell physical products only; selling, sharing, or distributing the original or modified digital files in any way is strictly prohibited.
  • The licensee may sell physical products on any online or offline sales channels, including marketplaces such as Etsy, Amazon, eBay, Aliexpress, Temu, local e-commerce sites, retail stores, fairs, and exhibitions.
  • Attribution is mandatory:
    • For original designs: Design © Ivan Bilous
    • For modified designs: Based on © Ivan Bilous design

4. Reporting Requirements

  • A quarterly sales report must normally be provided within 15 days after the end of each quarter, sent to info@vector-painter.com.
  • Reports should include the total units sold, gross sales revenue, and calculation of royalties due.
  • When paying via bank transfer or PayPal, include in the payment reference: period covered and units sold (or indicate “Minimum Payment”).
  • When paying via the website (custom listing), notify the licensor in advance about the sales volume covered.

5. Modifications & Use of Instructions

  • The licensee may modify the licensed designs for production purposes.
  • Modifications do not create new ownership rights; copyright remains with the licensor.
  • Modified works must still include the required attribution.
  • Modifications must not violate any applicable laws or promote discriminatory, offensive, defamatory, or otherwise inappropriate content.
  • The licensee must remove all contact details of the licensor (email, phone) from any provided instruction files.
  • If the instructions contain a final promotional/advertising page, it must also be removed.
  • The licensee may include printed versions of the instruction files with physical products, but may not distribute them in digital form.

6. Restrictions

The licensee may not:

  • Sell, share, or redistribute the original or modified digital files in any way.
  • Use, reproduce, publish, or share any promotional images, videos, or photographs created by the licensor without prior written consent.
  • Claim authorship or originality of the designs, even if modified.
  • Register the licensed designs or any derivative works as trademarks or other intellectual property.

7. Termination

The license will be immediately terminated if the licensee:

  • Fails to pay the agreed royalties on time.
  • Violates any of the rules stated in this agreement.
  • Engages in unauthorized distribution of original or modified digital files.
  • Is found to be manufacturing significantly more licensed products than reported in the quarterly sales reports. In such a case, the licensor has the right to unilaterally terminate the license without prior notice.

Termination of the license does not limit the licensor’s right to take legal action and claim compensation for damages caused to the author, including but not limited to losses from unauthorized file distribution or other intellectual property violations.

Upon termination, all rights to produce and sell the licensed designs immediately cease. No refunds are provided for terminated licenses due to violations.

8. Governing Law

This agreement is governed by the laws of the Czech Republic. Any disputes will be handled in the courts of Prague, Czech Republic.

9. Acceptance

By signing this agreement or completing the initial payment, the licensee confirms they have read, understood, and agree to be legally bound by these terms.

Licensor: Ivan Bilous 
Licensee: _________________________
Date: ____________________________