Selling the rights to a design.

Selling the rights to a design.
How would you do it?

Well, we all know that Shapeways have given us the oportunity to create a portfolio and receive a residual income from models that sell, however when the time comes and an offer is made for the rights to a design, how/why/what is the monetary value for that design?

Yes, it has happened to me and I have accepted the offer, but I am interested in other peoples' opinion as to what they would do and the reasons why.

Cheers,
Paul

I realize that this is not a direct answer, but have you looked at TurboSquid.com?

There, you will find tens of thousands of high (and some low) quality models that are priced anywhere from $25 to $500, some even higher.

TurboSquid has been in business for a long time. I would take a look at what you see at TurboSquid as sortof the "going rate" for models. (even though they are primarily rendering meshes only - many may not be set for 3d printing)

The thing about intellectual property is that you have to "let your baby go". You can't complain if the person buying it might hits a multi-million dollar salespoint. You got your money up front, and the buyer took a "risk" in that they might not have sold any copies at all. If you were to take on more risk, then you could offer the meshes for a royalty percentage of the final sales price. That system can ensure that you make money in perpetuity, but selling them outright can put coffee in the mug today. You must decide how much risk you're willing to accept versus how much reward you want in the long run.

I my self made a tidy little sum a few months back by taking some items in my shop, upscaling and refining them for a larger size, and then turning full rights to those meshes to the buyer. I don't lament it at all.

I also have no general problem (when asked) with granting someone permission to buy a normal 3d print from my shop and then try to cast it into some other material. If my design is good enough for them to use it as the master for injection molded copies at three cents each, more power to them. I have zero interest in funding the IM mastering process. I just like to design the models... I'll usually tell someone .. I want 2 copies from the first batch run, and then 1% of any revenue after the first million dollars you make. Still don't have any takers on that yet.

From my own personal perspective, I would suggest that you ask the buyer(s) to allow you to retain "by-line" credit on the models. In other words, that they must say "Designed by Mike" in association with the finished items. That way a third party could seek you out to get you to do even more work.

You might also consider not "selling" the models, but rather "licensing" them.. the buyer can use the model for ## of months, but if they stop using the mesh, then after that time you again have the right to use or re-sell the mesh.

i was thinking about this very subject... and i hadn't really thought about the licensing thing. i think when the time comes that is what i am going to do...

my thing is- these designs are my legacy and if they are properly maintained and documented will be able to make money forever. if it is done right a unique design could be making money for my family long after i am gone...

I think that what you should do is first determine if you really want to sell your design instead of licensing it (if that's an option).
Then calculate how much would this design make for you in, let's say, 3 or 5 years time. Then you get an actual sense of value in Shapeways shop sales terms.
Then again, maybe your buyer would mass produce that item and earn what you would make in 3 years X 1.000.
So it all depends on your circumstances.

Yes, I have been having thoughts along the licensing route, especially since my wife ran the contract by her contract solicitor work colleague who suggested licensing would be the way forward.

Thanks for all the input guys.

Paul

Personally, if a company were purchasing my design with the intent to mass produce, I would look into the concept of licensing for royalty rights with a limited contract time (Marvel offers a movie studio limited time to cash in on Spiderman; after the contract period expires another studio can take a crack at it... hence we have yet another relaunch of a Spiderman movie franchise right after the last trilogy was released).

A royalty has the benefit to the company of not costing a lot up front, but the detriment of costing them more over time. For the holder of the intellectual property rights, you have the benefit of higher potential income but the detriments of both less initial money and, if the item doesn't sell, little to no future profit.