DAI's, short for Digital Art Images, are captivating the digital art scene with their unique attributes that bear some resemblance to NFTs (Non-Fungible Tokens). Unlike the cryptocurrency DAI, these digital artworks are the brainchild of Michaelson Williams, the creative genius behind the popular ThirdEye Panda (TEP) series. While not quite NFTs, TEP artworks possess distinctive traits, particularly their transformative nature when printed against different colored backgrounds, offering a personalized touch to each piece.

The Emergence of Digital Clothing Wear:
In recent years, the emergence of NFTs has revolutionized digital art and fashion, introducing a novel approach to owning and distributing digital assets, including virtual clothing wear and accessories. Although TEP artworks aren't securely stored on the blockchain like NFTs yet, they share a similar allure with their ability to enhance the appearance of clothing and products.

Digital clothing wear refers to virtual garments and accessories exclusively existing in the digital realm, suitable for various platforms such as social media, virtual events, and entertainment media. These creations, ranging from intricately patterned t-shirts to digitally embellished hats, are the brainchild of digital artists and fashion designers.

TEP Image Licensing:
TEP image licensing follows traditional principles, with the creator of ThirdEye Panda (TEP) Michaelson Williams the artist retaining copyrights over his digital designs and licensing them to various parties, including buyers, resellers, and wholesalers. Licensees acquire the rights to use and display these digital assets in virtual spaces and on printable products through licensing agreements.

Benefits for Creators:
Digital image licensing empowers creators by allowing them to maintain ownership and control over their designs while generating revenue through licensing agreements. They receive royalties from secondary market sales and gain access to a global audience, establishing authenticity and scarcity to increase the value of their creations.

Considerations for Buyers:
Buyers must comprehend the terms of the licensing agreement associated with the DAI, including usage rights, restrictions, and royalty payments to the creator upon resale. Evaluating the creator's reputation and the potential for future appreciation in value is crucial when purchasing DAI's.

The Future of Digital Clothing Wear:
As the popularity of DAI's continues to soar, we anticipate further innovations and collaborations between digital artists and traditional fashion brands. With AI potentially reshaping the landscape of digital art creation, the demand for imperfect human-created DAI's may increase, offering unique opportunities for creators and buyers alike.

TEP's Growing Presence:
Currently, ThirdEye Panda (TEP) is licensed to three major partners, with more seeking to capitalize on its growing popularity. Products featuring TEP designs are available on several online platforms. Interested licensees can explore these platforms for best-selling product ideas and reach out to Michaelson Williams for customized licensing agreements tailored to their needs. With Michaelson's flexible approach, both novice and experienced licensees can establish mutually beneficial partnerships and carve a niche in the burgeoning DAI market.

Sample License Agreement:

This Artist Licensing Agreement (the “AGREEMENT”) is entered into effective this date, March 1, 2024, between Michaelson Williams of FloState Design in the county of "COUNTY" and the state of State (“ARTIST”) and LICESEE (“CLIENT”). All references to the Client in this Agreement shall include Client’s parent companies, affiliates, and subsidiaries.

Scope of this Agreement:
This Agreement applies to any image, graphics, digital assets, or digital images created by Artist associated with the artwork DAI NAME, ("IMAGE CLASS"), and delivered to the Client (collectively known as “IMAGES”). This Agreement governs the relationship between the parties and in no communication or other exchange shall modify the terms of this Agreement unless agreed to in writing.

Rights:
All Images and rights relating to them, including copyright and ownership rights in the media in which the Images are stored, remain the sole and exclusive property of the Artist. This license provides the Client with the limited right to reproduce, publicly display, and distribute the Images only for the agreed-upon terms as set forth in the Client Invoice and signed by both parties.

Relationship of the Parties:
The parties agree that Artist is an independent contractor, and no agency, partnership, joint venture, or employee-employer relationship is intended. Artist and the Images or any other deliverables prepared by Artist shall not be deemed a work for hire as defined under Copyright Law.

Creation:
The manner and method of creating any Image are solely at the discretion of Artist, and the Client has no right to control Artist’s manner and method of performance under this Agreement. Artist will deliver new artworks at a pace suitable for his schedule and is under no obligation to create new images for client what-so-ever.

Delivery:
Artist may select the delivery of digital images in standard formats at a resolution suitable for the Images as licensed. Artist is not responsible for providing images larger than 8”x10” at 300 dpi or in a format higher than 8-bit or in RAW format. Artist has no obligation to retain or archive any Images delivered to Client. New images delivered to Client will adhere to the "Royalty Payment Schedule" in this agreement, and shall not be renegotiated by Client.

Fees:
All fees and expenses stipulated in this agreement must be settled no later than twenty (20) business days from the date of the sale of the product/s associated with the image/s. These fees are obligatory and are to be paid regardless of the Client's profitability resulting from the sale of products incorporating the said image/s. Failure to receive full payment within thirty (30) days entitles the Artist, at their discretion, to revoke all associated rights.

Cancellation:
Client cancellation prior to 1) Stated delivery date on the Client Invoice or 2) within one (1) month of this agreement incurs a twenty-five (25)% cancellation fee . For Client cancellation within two (2) days of the delivery date, Client is responsible for one-hundred (100)% of the fee and any expenses incurred.

No Exclusivity:
This Agreement does not create an exclusive relationship between the parties. Client is free to engage others to perform services of the same or similar nature, and Artist shall be entitled to offer and provide services to others.

Transfer and Assignment:
Client may not assign or transfer this agreement or any rights granted under it. No amendment or waiver of any terms is binding unless in writing and signed by the parties. The Client hereby consents to an audit of the Artist Royalty Payment Schedule in the event that any discrepancy exceeds 0.5 percent.

Indemnification: Client will indemnify and defend Artist against all claims, liability, damages, costs, and expenses, including reasonable legal fees and expenses, arising out of the creation or any use of the Images or materials furnished by Client. It is the Client’s responsibility to obtain the necessary model or property releases are ensure they are full effect and in force.

General Law/Arbitration: This Agreement sets forth the entire understanding of the parties, and supersedes all prior agreements between the parties. This Agreement shall be governed, interpreted and enforced in accordance with the laws of the State of STATE NAME. Any claim or litigation arising out of this Agreement or its performance may be commenced only in courts physically located in COUNTY AND STATE NAME, and the parties hereby consent to the personal jurisdiction of such courts. In the event of any litigation arising out of or relating to this Agreement, the prevailing party shall be entitled to recover its attorneys’ fees incurred in the litigation. If parties are unable to resolve the dispute, either party may request mediation and/or binding arbitration in a forum mutually agreed to by the parties.

Severability: If one or more of the provisions in the Agreement is found invalid, illegal or unenforceable in any respect, the validity and enforceability of the remaining provisions shall not be affected. Any such provisions will be revised as required to make them enforceable.

Royalty Payment Schedule:
Pursuant to this agreement, the Client acknowledges and agrees to remit a royalty payment to the Artist, equivalent to [%]of the sale proceeds for each unit sold, until either the cumulative payment reaches $AMOUNT or approximately NUMBER OF units are sold, whichever occurs earlier. Subsequently, upon the achievement of the aforementioned sales volume or monetary threshold, the Client undertakes to compensate the Artist at a reduced rate of [%] per unit sold for the duration of the contractual agreement. This heightened royalty remuneration is deemed to substitute any upfront payment associated with the licensing agreement.

Upon the expiration of the #-year/s contractual term, the Artist retains the prerogative to initiate negotiations for the adjustment of royalty terms in accordance with his discernment.

Waiver: No action of either party, other than in writing agreed to by the parties, may be construed to waive any provision of this Agreement and a single or partial exercise by either party of any such action will not preclude further exercise of other rights or remedies in this Agreement.

IN WITNESS WHEREOF,
the parties have caused this Artist Licensing Agreement to be duly executed as of the dates written below.

DATE/S

MMAP Magazine: The Magazine For The True Success Seeker

3/22/2024

Contact Info:

FloState Design

Michaelson Williams

Email: [email protected]