Black Label Pre-Purchase Info

WHAT YOU'RE PURCHASHING

When you select a Black Label design, you are purchasing a commercial license—not the underlying intellectual property. The design remains the property of the Licensor, while your license gives you the exclusive commercial rights defined in your individual Licensing and Royalty Agreement.

WORLDWIDE RIGHTS

Black Label licenses are available to qualified commercial licensees around the world.

Unless your individual agreement states otherwise, your licensed territory is **worldwide**, allowing you to manufacture, market, distribute, andsell authorized products incorporating your licensed design internationally.

YOUR BLACK LABEL LICENSE

Feature: Black Label Exclusive

Design: Your selected Black Label design
Territory: Worldwide
Initial license fee: One-time purchase fee
Recurring license fee: None
Royalty: 5% of Gross Quarterly Revenue generated from licensed products
Commercial use: Worldwide, within your approved license scope
Manufacturing: Permitted within the agreement
Distribution: Worldwide, subject to applicable law
Exclusivity: As specifically defined in your agreement
Intellectual-property ownership: Retained by the Licensor
License duration: Long-term, subject to the agreement and continued compliance
Reporting: Periodic royalty reporting
Audit rights: Reserved by the Licensor

HOW IT WORKS

1. Browse the Collection

Explore the available Black Label designs and find the design that fits your commercial vision.

2. Select Your Design

Choose the design you wish to license and review its available licensing terms.

3. Purchase Your Initial License

Each Black Label design requires a one-time initial license purchase fee.

This fee is separate from the ongoing royalty obligation.

4. Complete Your License Information

After completing your purchase, you will be directed to a post-purchase Royalty Registration Form. Complete the form and provide the information required to establish your licensing records and administer your quarterly royalty payments. No Black Label membership or account is required to purchase the license.

5. Review & Accept the Agreement

Before your license becomes effective, you will have the opportunity to review the complete terms governing your design, including commercial rights, territory, exclusivity, royalties, manufacturing, reporting,
and other applicable provisions.

6. Build With Your Design

Once your license becomes effective, you may use the design commercially within the rights granted by your agreement.

THE ROYALTY MODEL

Black Label does not charge a recurring fixed license fee.

Instead, the program uses a performance-based royalty structure.

The licensee pays:

5% OF GROSS QUARTERLY REVENUE GENERATED FROM LICENSED PRODUCTS

The agreement defines exactly what constitutes Gross Profit and which direct costs may be deducted when calculating the royalty.

For example, if a Licensed Product generates $10,000 in Gross Profit:

$10,000 × 5% = $500 royalty

This structure allows you to build and grow your commercial operation while the Licensor participates in the success generated by the licensed design.

WHAT YOUR LICENSE DOES NOT DO

Your license does not transfer ownership of the underlying design or intellectual property.

You receive the rights expressly granted in your Licensing and Royalty Agreement. Rights that are not expressly granted remain with the Licensor. Because Black Label designs are offered on an exclusive basis, the exact scope of your exclusivity—including applicable products, markets, channels, and other limitations is defined in your individual agreement.