Licensing fees - what to ask

[cybis]

I’ve been contacted by a computer manufacturer who is interested in potentially using one of my images to use as a desktop image in a future release of their OS.

The usage they require is ‘worldwide, used as a desktop or screensaver option.  Image or images will be imbedded in our products and sold pre-installed in the software. Duration of license is 5 years. (timeframe is negotiable). Worldwide, unlimited, non-exclusive.’

Since I’ve never licensed anything in the past, I’m at lost as to what to ask. Any pointer would be greatly appreciated.

[Yelhsa]

Look to see what a Stock Library would charge, Alamy, for example.
However, keep in mind you have listed prices on your website, so they may be thinking your fee will be closer to those.

The other option is to simply ask them what their budget is or what sort of figure did they have in mind, for this type of use !!

Either way, just be sure to clear state what the use is, when you quote them a fee.

For example:
To provide one image of [describe the image].
Image reference: [file number].
For non-exclusive use, for [their name] to use this image for:-

Media use: Desktop / screensaver only.
Period of use: 5 years (ends 28th February, 2017).
Territory of use: Worldwide.

Licence fee based on the above: $.............

[cybis]

Thank you for the detailed answer, @Yelhsa. Browsing Alamy gave me a good idea of what to ask. The image, if selected, would ship with every new iOS devices which is a wider disctribution than any of the licensing scenarios I could find on their site. I guess I should just extrapolate

[langier]

Also check Corbis and Getty.

You'll probably need to register to do it, then find a similar image and price accordingly. It will get you into the ball park.

What many of the rest of us use (and it's the pricing model for Photoshelter, I'm pretty sure) is FotoQuote software.

If this may be a major sale, then it would be worth the expense to purchase this software and use it as a start. It also has coaching and tips and other bells and whistles to help you get a better price for your efforts.

[cybis]

Thanks Larry.
FotoQuote looks very interesting indeed. I'd probably purchase it if I get more inquiries.
We agreed on a price and I'm waiting to see if the photo get selected.
Thanks for the help everyone.