IP Rails
YOUR ACCESS TO HANDMADE LICENSING MARKET
HANDMADE OPPORTUNITY
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:
The market is ready, but there are few challenges.
THE CHALLENGES
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
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
HOW IT WORKS
SCHEDULE A MEETING WITH US TO START YOUR JOURNEY!
FLEXIBLE PERMISSION TYPES
- 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
EXAMPLES IN PRACTICE
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
BRANDS AND IP OWNERS
working with us directly
- IP Elements Management
- Offers Management
- Designs Approval
- License Agreements Approval
- License Agreements Management
- Reports
- Automatic Royalty Calculation
- Automatic Invoicing
- Automatic Limits Monitoring
LEGAL AGENCIES
representing and managing brands
- IP Elements Management
- Offers Management
- Designs Management
- License Agreements Approval
- License Agreements Management
- Reports
- Automatic Royalty Calculation
- Automatic Invoicing
- Automatic Limits Monitoring
- Brands and Customers Management
WE HAVE MORE TO OFFER
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.
SOCIAL IMPACT AND BRAND IMAGE
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:
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.