What This NFT Royalty Agreement Template Covers

This NFT royalty agreement template provides a comprehensive framework for establishing royalty terms between digital artists and NFT platforms or buyers. Key clauses include the Parties involved, Royalty Terms, Obligations of the Parties, Representations and Warranties, Indemnification, and Termination. This agreement ensures that creators receive their rightful royalties from secondary sales of their non-fungible tokens (NFTs).

When to Use a Royalty Agreement for NFTs

Digital artists should use this NFT royalty agreement template when launching their NFT collections to ensure they receive ongoing royalties from future sales. NFT platforms can utilize this agreement to formalize the terms with creators, ensuring clarity on royalty percentages and payment schedules. Additionally, buyers looking to understand their obligations in relation to NFT sales should reference this template to protect their investments.

What's Included in This Digital Asset Royalty Agreement

• Parties: Clearly identifies the Creator and the Platform/Buyer involved in the agreement.
• Royalty Terms: Specifies the percentage of sales that will be paid as royalties to the Creator.
• Obligations of the Parties: Outlines the responsibilities of both the Creator and the Platform/Buyer regarding the management and sale of NFTs.
• Representations and Warranties: Ensures that both parties provide assurances about their rights and capabilities.
• Indemnification: Protects parties from potential legal claims arising from the use of the NFTs.
• Termination: Details the conditions under which the agreement can be terminated by either party.

Key Non-Fungible Token Royalty Terms

• Royalty Percentage: The specific percentage that the Creator will receive from secondary sales, which is crucial for ongoing income.
• Payment Period: Defines how often royalties will be paid to ensure timely compensation for the Creator.
• Cure Period for Breaches: Provides a timeframe for either party to remedy any breaches of the agreement before termination can occur.

Disclaimer: This template is for informational purposes only and does not constitute legal advice.