IP Rails

YOUR ACCESS TO HANDMADE LICENSING MARKET

DISCOVER HANDMADE MARKET AND GROW YOUR LICENSING!

HANDMADE OPPORTUNITY

Thousands of trustworthy licensees are waiting to partner with you.
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Handmade Market Size on Etsy
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Annual Market Growth
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Active Etsy Sellers
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Potential Annual Royalty Fees

While the average annual sales amount for Etsy sellers is just around $2,700, most of them are just getting their feet wet and do almost no sales, while others collect millions in sales every year. We found that experienced sellers, who are in the business for at least 1 year and longer, would be the most interested in licensing. These sellers have a proven track record, have $1,000/month sales and higher, often reaching even $40,000/month, they value their business and are the perfect licensee candidates for the brands.

While royalty fees usually vary from 5% to 15%, even 20% is possible for the bigger and popular brands. At the $1,000-$3,000 sales and 15% royalty fee, brands can expect the following annual estimated royalty payments:

royalty-table

The market is ready, but there are few challenges.

THE CHALLENGES

Finding licensees is hard. Managing them is harder.

CHECK

Every brand wants to make sure they engage in a relationship with a reliable and trustworthy licensee. Standard checks like KYC require time, resources and budget.

EXECUTE

Drafting a separate licensing agreement for each licensee, discussing and agreeing all the terms, limits, payments and reporting requirements takes weeks.

SETTLE

Reviewing thousands of reports, checking the sales figures for every licensee, calculating and collecting the royalty fees would require a large dedicated team.

These issues kept licensing unavailable for the smaller manufacturers and a huge new market had yet to be discovered by the brands.

IP RAILS IS THE KEY

Join the thriving collaboration between the brands and handmade manufacturers.

Our mission is to replace the expensive and slow trademark licensing and permissioning legal workflows with an elegant and swift solution. IP Rails provides makers and IP owners with a place and a toolset required to simplify the execution, approval, reporting and billing processes. Here handmade sellers can get a legal permission to use trademarks and copyrighted content and grow their sales. And IP owners can now access a new market, cut their legal protection costs and turn those into profits.

THE SOLUTION

We addressed all main challenges and invite you to discover a new market.

SECURITY

Every Etsy seller goes through a standard KYC (know your customer) process and cherishes their business. IP Rails puts additional level of protection in place to ensure even higher credibility and trust. We call it Know Your Crafter and our process includes the following checks:

  • how long is the store operating
  • store rating
  • number of refunds
  • products and product categories review
  • geography

FLEXIBILITY

We reviewed dozens of licensing agreements and built a convenient tool to create a Licensing Offer and setup its terms: royalty percentage and fixed fee, warranty downpayment, sales limits by amount and quantity, geography and others. IP owners can also add their custom offer description, upload related documents and add custom questions for the licensees to answer while requesting a license. Listing an Offer on IP Rails is easier than renting your room on Craigslist.

AUTOMATION

You create a Licensing Offer, we do the rest. Our official Etsy App allows us to connect to every store of every Licensee and check their sales almost in real time. We calculate the total monthly sales for each executed agreement, generate the invoices for the Licensees to pay their Royalty fees and transfer the funds to the Brands within a single convenient payment with a detailed report attached. Our system can also notify all parties or even delist the licensed products upon reaching the sales limits.

INSIGHTS

We provide a convenient dashboard and reports to track your licensing pipeline at a glance. Check how many licensees and active agreements you have. See how many license requests and product designs are pending your reviewal. Review the Etsy stores list and product links. Understand your sales and growth better. And if that is not enough, you can Export whole Sales report to Excel spreadsheet and filter it as you like.

HOW IT WORKS

Almost like Netflix or Spotify. Companies and artists provide access to their IP to thousands of people and get a revenue share.

IP OWNERS ADD OFFERS TO THE MARKETPLACE

IP Owners add their trademarks and/or copyrighted content to the system and create Offers. In the Offer they set the type of permission they grant, terms and limits, define the royalty fee amount and payment rules, add custom questions for the licensees and make their offers available for thousands of Etsy sellers

SELLERS REQUEST THE PERMISSION OR LICENSE

Etsy sellers choose the Offers they like, review the terms, answer the additional questions if IP Owner defined those and request the license or permission. The Licensing Agreement with all the terms of the Offer is created in Pending status.

IP OWNERS EXECUTE THE AGREEMENT

IP Owners review the requests and the provided answers to their questions and approve the Licensing Agreement execution. This step is optional and the Offers can be setup to execute all Agreements automatically.

ETSY SELLERS GROW THEIR SALES

Handmade sellers map their Etsy listings to the Agreements they have. IP Rails automatically adds the unique license certificate code to the item description. Etsy sellers can now use the trademark or copyrighted content to grow their sales.

IP OWNERS REVIEW THE RESULTS

IP Rails provides transparent reports for all the Sales related to the products mapped to IP Owners’ Agreements along with the estimated Royalties Amount for each Sale and for the month. The Invoices are automatically created at the month end and can be reviewed if required.

ETSY SELLERS PAY THE ROYALTY

Handmade sellers review the reports and automatically created Invoices and pay the Royalty fees.

IP OWNERS COLLECT THE ROYALTY

IP Rails collects the Royalty fees from the sellers based on the confirmed Invoices and transfers the cumulative payment from all certified handmade sellers to
the respective IP owners.

SCHEDULE A MEETING WITH US TO START YOUR JOURNEY!

FLEXIBLE PERMISSION TYPES

IP Rails allows to choose from 3 standard permission types for you to have a smooth take-off and effective scaling.
  • Permission to mention a trademark name in the product description – the most limited and the most highly requested permission type (Etsy only)
  • Permission to use a visual trademark or a copyrighted image in product design (Etsy only)
  • Other – custom licensing agreement with flexible terms

Example

MENTION TRADEMARK IN PRODUCT DESCRIPTION

The most anticipated permission for Etsy sellers and the safest permission possible for the trademark owners.

Product Title

Licensee may mention the trademark in the listing title to reach more customers.

Listing Keywords and Tags

Licensee may use the trademark as one of the listing tags or search terms.

Listing Description

Licensee may have the trademark mentioned in the listing description.

Copying Licensed Products

Licensee cannot copy any products manufactured by licensed manufacturers.

Using IP outside Etsy

Licensees permission to use a trademark is limited only to Etsy platform.

Placing Trademarks on Etsy Product

Licensee cannot do that as your permission is limited and allows only a specific types of trademark usage.

EXAMPLES IN PRACTICE

See how the licenses are used in the real world.

A ring in the form of an orc’s head from World of Warcraft. The crafter does not need permission to use any visuals because it’s not a copy of the character.  However, this product is designed for fans of the Warcraft Universe. The crafter seeks permission to mention Warcraft in the product title, description, and tags to make it associated with Warcraft.

The crafter uses a Warcraft Universe symbol and needs permission to use a trademark in the product title and description. As well as permission to use this symbol. This allows to use names and images, however, the licensor may require an explicit notice that the product is not licensed, if needed.

An outlet cover stylized in a Star Wars theme. The crafter does not need permission to use any visuals because it’s not a direct copy of the characters or protected images. However, this product is designed for fans of Star Wars. The crafter is seeking permission to mention Star Wars in the product title, description, and tags to clearly associate it with the franchise.

A candle holder in the form of a spacecraft with the emblem of the Rebel Alliance from Star Wars. The crafter needs a permission to use Star Wars protected visuals even if the product is not a direct copy of other licensed products. The crafter is also seeking a permission to mention Star Wars in the product title, description, and tags to clearly associate it with the franchise.

PRICE PLANS

Still keeping it simple and transaparent.

SOCIAL IMPACT AND BRAND IMAGE

Crafters are self-made, beautiful and independent. Supporting them is a good thing.
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Etsy Stores Closed Due to IP Infringements (+25% YoY)
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Listings removed (+10% YoY)
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Takedown Reports Sent by IP Owners (+24% YoY)
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Paid by Brands for legal protection services

300 million people are working in Creative Manufacturing and Handmade (CMH) Market, this is the second in size market after agriculture. And we know this market: 

  • 76% CMH leaders are women
  • 64% – under 35 y.o.
  • 62% live in rural area
  • 95% of market is self-financed

Etsy, as the biggest online handmade market place has 7 million sellers and almost a half of those pay all their bills with the profit they get from Etsy sales.

Every family shop has a huge social impact. Crafters create work places, finance themselves and their families and support diversity. We can support all these people, together. But instead, thousands of online stores are taken down every year, often due to miscommunication or a mistake, without a chance to recover their account.

We believe the problem is in the current licensing and prosecution approach. With IP Rails, brands could offer crafters a legal way to resolve legal issues and grow together.

Big brands like Mojang (Microsoft subsidiary, Minecraft IP owner) already recognize crafters as a separate niche and offer a free limited license for handmade manufacturers staying within agreed limits.

We invite you to join us building a community of brands committed to recognize, support and respect handmade crafters all over the world.

WE HAVE MORE TO OFFER

Think indy. Think content creators. Enterprise. Metaverse. NFT.

We plan to grow IP Rails into a multi-purpose trademark licensing console which would cover IP owner’s needs regardless of their size and complexity of the licenses and/or specific permissions.

REQUEST A DEMO

We will be delighted to meet you and demonstrate our platform.