If someone needs to use your art in order to display on his/her products or as an advertising display, he or she is required to negotiate with you for art licensing. Because, no one has the right to use your art without your written permission. And those who do not take your permission will be accused of violation of copyright law. Thus, be sure that your art licensing agreement takes future earnings into consideration. Always follow this thing that don't get into an exclusive agreement unless your price is high enough to accommodate a future loss of earning. Because, you created the art, and you do not necessarily have to agree to work exclusively with that client. Also you do not you have to agree to sell your art in exchange for a considerable amount of money.
Art licensing is a very complicated process. If you are new to the business you may not understand the prospects involved regarding the future earnings potential of your work. You also have no idea about what you may stand to lose if you fail to negotiate a good art licensing contract. When it comes to art licensing, you should always remember that it's better to start higher and negotiate downwards than to start lower, allowing yourself for negotiation. Since, your client usually will not willing to offer you a higher price than what you will offer.
The terms of your art licensing may vary, since it depends on its purpose and the client. However, the fact remains that if your art is going to use for a good cause, you may want to accept a lower price from your client. On the contrary, if a multi-million dollar corporation is approaching you for your art, you may want to charge a higher price.
However, if someone needs your art just to display with no potential for sales, there is no need for licensing. The need of art licensing comes when the display of your art is connected to a specific product and has if it the potential to create a profit for the company by using your art in commercials, on display advertisements or as part if an advertising campaign. Thus, you should be very careful about all these things at the time of you are going for an art licensing. When going for art licensing agreement, always seek legal advice from your attorney. However, you do not need to consult a lawyer in order to prepare the agreement. But, be sure your rights are protected and the client is getting a fair deal.