font licensing

I received an inquiry from an international company that creates software for embroidery machines. They want to possibly license several fonts from one of my font families. They will include it on possibly 3 different software products as well as for download. The products contain over 150 alphabets and pricing runs from 2000.- 4000 for the software. Each purchaser of their software, worldwide, will be able to use my fonts to create products for sale.
MY EULA does not allow making embroidery alphabets or using any single glyph for a product for sale. So this license will be allowing that worldwide.

I'm looking for any thoughts or advice on how to handle this inquiry. From knowing what kind of questions to ask them ( how many units they might sell in a year? How many distributors will be selling the software? Can the font be extracted from the software or download?) to what kind of pricing might be appropriate and what kind of terms I need to include in the agreement. I'm trying to handle my own licensing and so far have been able to manage but this one seems to encompass a lot. Any input would be greatly appreciated!

Comments

  • Identify a multiplier that works for you and set the price. They can only say no or yes. If they say no you probably set the bar too high. If they say yes, you probably set the bar too low.
  • edited August 2014
    The company essentially becomes a reseller of your typeface, although in a different format and with limitations you don’t have in digital fonts. So, if a reseller normally takes a 50% cut, you could multiply that (or a smaller percentage, depending on how much functionality they loose on format conversion) by the number of units they estimate selling as a basis for negotiation. When licensing fonts, one normally gives a discount for large purchase. You could also factor this in to the quote.
  • Thanks for your comments James and Frodo. One thing to note is that it would be one of 150 fonts included with the software. So basing it on what happens with a normal reseller doesn't seem to fit this model. But I can appreciate your point that they are essentially becoming a reseller of my typeface only in a different format. I'm trying to figure out what the value is when my font is one small part of the program.

  • James PuckettJames Puckett Posts: 1,603
    If I were in your position I’d get someone with lots of experience to handle the deal. Stuart Sandler of Font Bros. will negotiate OEM deals, and IIRC so will Frank Martinez.
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