Motion Picture Merchandising Distribution Agreement

License the merchandising rights for a motion picture to a distributor with this Motion Picture Merchandising Agreement template.

• Exclusive License. The distributor is granted an exclusive license within the defined territory to manufacture, advertise, distribute and sell merchandise that incorporates names, characters, and events from the film
• License Fees. In return, the distributor will pay the film producer a guaranteed minimum compensation amount (a fixed amount paid as an advance against the percentage royalty), and a percentage royalty based on the current wholesale price of the licensed products.
• Product Approval. The producer must approve all products, packaging, labels, advertising, display materials and copyright notices to be used in connection with the licensed products.
• Goodwill. The distributor agrees to protect the producer's property rights and goodwill, and acknowledges that all goodwill and all rights to the materials created by the distributor are the exclusive property of the producer.
• Intellectual Property Notices. All licensed products must carry the producer's copyright and/or trademark notices (as applicable).
• Liability Insurance. The distributor must carry standard product liability insurance and advertiser’s liability insurance during the term of the Agreement.
• Termination. Upon termination of the Agreement, the distributor will have a 90-day period to dispose of all products already manufactured, so long as the Agreement was not terminated for cause.

This Motion Picture Merchandising Agreement template is available as a MS Word download, which is fully editable and customizable to fit your needs.