Third Party Rights (NIL)

Written in

by

Specify the scope of the rights being granted

Yes, you can grant a third party the rights to use your Name, Image, and Likeness (NIL) specifically for use in a trading card, while retaining control over how your NIL is used in other contexts. This is typically done through a licensing agreement or contract where you specify the scope of the rights being granted.

Key Points to Consider in Such an Agreement:

nft trading cards
  1. Scope of Use: Clearly define that the NIL rights being granted are limited to the production, distribution, and sale of trading cards. Specify whether this includes physical cards, digital versions, or both.
  2. Duration: Set the length of time during which the third party can use your NIL for the trading card. This could be for a specific number of years or for the lifetime of the trading card series.
  3. Geographical Limits: You can specify whether the rights apply globally or are limited to certain regions or markets.
  4. Exclusivity: Determine whether the rights you grant are exclusive (meaning only that third party can use your NIL in trading cards) or non-exclusive (allowing you to grant similar rights to other companies or entities).
  5. Compensation: Define how you will be compensated for granting these rights. This could be a one-time fee, royalties based on sales, or another form of payment.
  6. Approval Rights: You might want to retain some control over how your NIL is used, such as approving the design of the trading card before it goes into production.
  7. Termination Clauses: Include terms that allow you to terminate the agreement if the third party does not adhere to the agreed-upon conditions or if certain conditions arise.
  8. Rights to Other Uses: Clearly state that the third party does not have rights to use your NIL in any other products or contexts beyond the trading cards, ensuring you retain control over all other potential uses.

Example Clause:

“Grantor hereby grants to [Third Party] a non-exclusive, worldwide license to use the Grantor’s name, image, and likeness solely for the production, distribution, and sale of trading cards. This license is limited to trading cards and does not extend to any other products or media. Grantor retains all other rights associated with their name, image, and likeness. The license shall remain in effect for [duration] unless terminated in accordance with the terms of this agreement.”

Such a clause ensures that your NIL rights are specifically controlled and limited to the agreed use in trading cards. It’s advisable to work with a legal professional to draft or review the agreement to ensure it fully protects your interests.

Leave a Reply

Your email address will not be published. Required fields are marked *