Comp for factory using our design w/ our customers

Re: [spiers] Comp for factory using our design w/ our customers


In a message dated 3/18/05 4:16:09 PM, paulcifka@yahoo.com writes:

I am now in Shenzhen, China after meeting with several factories

that we have producing our product - a bottle opener w/ our special

packaging. I noticed in their showroom they had produced packaging

using some of our art work. They have sent out 100s of thousands w/

our artwork (not our branding just some of the design and

description drawings) which I was unaware of.


I remember John mentioning writing a memo asking the factory to comp

5% when other customers buy your design from that factory....how

about artwork? Do you think they would comp for that as well if they

use our artwork designs for the packaging? If so is 2-3% reasonable

or the whole 5%?


I have quickly learned that everything is about $$ in this area and

everything is negotiable but would love to know if there are any

precedents out there.

Well... the percentages i quoted in the book were "for example' so there is
some art to all of this. As for requesting a fee now, it is a tad bit late,
rather water under the bridge. What they did is make packaging for you, and
saved a few bucks by recycling your ideas.

Now you may feel as though they have taken advantage, in a negative sense,
while they will assure you they have taken advantage, but in a positive sense.
What a good thing to do, from their perspective, to have reused your packaging
themes.

To my mind I'd let it go, it is not big deal... I assume your products are
evolving from custoomer feedback...in time change the packaging and make clear
THEN that you want no knock-offs of your theme. As far as the 5%, associate
that with the product... to my mind, packaging isn't that important to demand a
"royalty" on that.

John

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