Getting royalties, ...
 

[Closed] Getting royalties, enforcing agreements etc...

Posts: 0
Free Member
Topic starter
 

So, long story short: I helped design and prototype a bike design, putting a lot of work into it, and quite a bit of money in terms of parts etc., on the understanding that profits would be split 50/50 - it was a pretty speculative thing at the time.

Now the bike is a success, selling in the thousands, but I've not seen any money from it - how long to I keep up the friendly hints before I start thinking of other ways?

TBH, I let it slide for a long time as it took a while to get off the ground...


 
Posted : 23/11/2012 4:26 pm
 hora
Posts: 0
Free Member
 

Was it verbal agreement or do you have emails etc etc?


 
Posted : 23/11/2012 4:27 pm
Posts: 0
Free Member
Topic starter
 

I have emails 😉


 
Posted : 23/11/2012 4:28 pm
Posts: 0
Free Member
 

Ask them rather than drop friendly hints.
What bike?


 
Posted : 23/11/2012 4:30 pm
Posts: 251
Full Member
 

If it were me I'd arrange to meet and be perfectly open on the 'we were doing it 50/50 and I think it's time I started seeing my share'. Give a timescale - 3 months (or whatever) during which you;d like to see some revenure coming your way. Ask if you can agree how 'profit' is defined - very easy to run a business that makes no profits if you want to.

Produce letter after meeting listing what was discussed.

If you get no joy after that then write a formal letter giving your intentions to pursue it and take legal advice.

Don;t need a letter for an agreement to be enforceable but clearly any evidence you do have would help.


 
Posted : 23/11/2012 4:31 pm
 hora
Posts: 0
Free Member
 

Now selling in their thousands... I wouldn't wait- I'd take some initial legal advice then draft something to the other party A-SAP.


 
Posted : 23/11/2012 4:32 pm
Posts: 0
Free Member
Topic starter
 

When I say "drop hints" I mean my emails have been friendly ones of the "lets get this sorted out" kind. I've also got no indication that they don't want to sort it out, it's just dragging out.

I'd rather not say which bike.

PS thanks very much for the advice - I'll start with a more formal email now.


 
Posted : 23/11/2012 4:32 pm
Posts: 0
Free Member
 

very easy to run a business that makes no profits if you want to

Spoken like someone who runs their own business!


 
Posted : 23/11/2012 4:33 pm
Posts: 0
Free Member
 

Are you going to admit it is the Orange 5?


 
Posted : 23/11/2012 4:36 pm
 hora
Posts: 0
Free Member
 

I wouldn't even bother with hints anymore. Its obvious hes not willing to play ball/normal- get to a Solicitor. A quick google should help direct to product royalties etc specialist if need be.

It'll cost you a small bit for the first letter.


 
Posted : 23/11/2012 4:37 pm
Posts: 0
Free Member
 

If you've got the emails printed off, I can have a look at them when I see you tomorrow Ben? Might be useful to have an outsider opinion on what the paperwork says you agreed, rather than what you remember.

Can also recommend a load of ex colleagues who can advise if need be.


 
Posted : 23/11/2012 4:52 pm
Posts: 41395
Free Member
 

bencooper - Member
I'd rather not say which bike.

Oh dear...

[img] [/img]


 
Posted : 23/11/2012 4:56 pm
Posts: 0
Free Member
Topic starter
 

Thanks very much, will do...

Edit: if it was that bike, I'd probably let it go 😉


 
Posted : 23/11/2012 4:58 pm
Posts: 2227
Free Member
 

Selling in the thousands?
It's not an Apollo is it :O)


 
Posted : 23/11/2012 5:02 pm
 hora
Posts: 0
Free Member
 

A UK based brand?


 
Posted : 23/11/2012 6:46 pm
Posts: 0
Free Member
 

Profits are not royalties...


 
Posted : 24/11/2012 8:10 am
Posts: 0
Free Member
Topic starter
 

Yes, I was being vague because I don't know the exact term for it.

A UK based brand?

In this case, yes - don't get me started on design work I've done for non-UK companies that I haven't seen a penny for 😉

Must learn to stop being so helpful...


 
Posted : 24/11/2012 10:22 am
Posts: 40432
Free Member
 

Hopefully your business partner is just too busy selling the thing to get it sorted.

Set a time and date yourself and tell him/her you'll be turning up to sort it out then. Tell rather than ask.


 
Posted : 24/11/2012 10:36 am
Posts: 0
Free Member
 

Get legal advice. Doing so isn't an aggressive move, it's a proactive one.


 
Posted : 24/11/2012 11:28 am
Posts: 2628
Free Member
 

Unless you signed a contract detailing royalties of x% for x years etc I think your struggle will be if the uphill variety. Even when dealing with mates, getting a contract signed and witnessed beforehand saves a lot of trouble.


 
Posted : 24/11/2012 11:53 am
Posts: 0
Free Member
Topic starter
 

So, a month and a half on from the (I think very fair) proposal I emailed him, I've had no reply - chasing by phone, and he promises to have a think about it by next week.

So, next stage - it's too much for Small Claims I think, where do I go from here?

I'm learning, yet again, why it's a bad idea to go into business with friends 😉


 
Posted : 17/01/2013 11:33 am
Posts: 16381
Free Member
 

Watch a few episodes of 'the sheriffs are coming'


 
Posted : 17/01/2013 11:39 am
 br
Posts: 18125
Free Member
 

[i]So, a month and a half on from the (I think very fair) proposal I emailed him, I've had no reply - chasing by phone, and he promises to have a think about it by next week.

So, next stage - it's too much for Small Claims I think, where do I go from here?
[/i]

tbh I'd have just gone to see him, in person - radical I know, but I'm old fashioned...

EDIT - is this you?

http://www.kinetics.org.uk/blog/


 
Posted : 17/01/2013 11:42 am
 ojom
Posts: 177
Free Member
 

Have these bikes got anything to do with Paper?


 
Posted : 17/01/2013 11:44 am
Posts: 0
Free Member
Topic starter
 

tbh I'd have just gone to see him, in person - radical I know, but I'm old fashioned...

EDIT - is this you?

He came up here a month and a half ago, we had a talk, he went away to think about it.

Yup, that's my blog - doesn't get used all that much 😉

TBC - yes, good guess.


 
Posted : 17/01/2013 11:47 am
Posts: 251
Full Member
 

You can tell it was made for health and safety - it's painted bright red 😉

[img] [/img]


 
Posted : 17/01/2013 11:47 am
Posts: 0
Free Member
Topic starter
 

That's my custom indestructable Mikrocopter dome - the official MK one costs €25 and is vac-formed plastic, that one was 99p from Poundstretchers 😉


 
Posted : 17/01/2013 11:51 am
 ojom
Posts: 177
Free Member
 

I like the look of the paper bike. I might actually buy one.


 
Posted : 17/01/2013 11:52 am
Posts: 0
Free Member
Topic starter
 

It was originally meant to be for the Royal Mail, a tough simple bike that the posties couldn't break...


 
Posted : 17/01/2013 12:02 pm
 ojom
Posts: 177
Free Member
 

Do they ride nice?


 
Posted : 17/01/2013 12:04 pm
Posts: 0
Free Member
Topic starter
 

Yes - they're not especially light but they don't feel like a Dutch roadster.


 
Posted : 17/01/2013 12:05 pm
Posts: 0
Free Member
 

This is a bit late for this particular one, but on the rare occasions I do anything that isn't my main work, if there's money to be had, at the first discussion, I talk about how money is going to work (fixed amount of money, or hourly), then always follow it up with an email stating what we agreed.

That way everyone is clear, and if by chance someone doesn't pay you, it is just a matter of sending an invoice and being (very) persistent.

On the other hand, it's a small world, I bet you personally or through contacts know 90% of the people who sell these particular specialist bikes, if you've got tons of evidence that you helped with the design in return for a share of revenues, and you haven't been paid, you could easily make a lot of hassle for the manufacturer if you were to publicise this, or say to notify all the dealers that you were liable for a share of profit on the bikes, or similar. It would probably be legally unenforceable, but when faced with potential hassle, chances are the small shop owners involved wouldn't want to deal with the bikes any more, or at least would bombard the manufacturer with worried questions; if you're selling a niche product to a small section of an industry, you rely a lot on good publicity and dealer goodwill.

I'd link him to this thread too. It's not exactly good publicity for the bike is it.


 
Posted : 17/01/2013 12:23 pm
Posts: 0
Free Member
 

Ben, my offer still stands fella, just email me.


 
Posted : 17/01/2013 12:30 pm
Posts: 0
Free Member
Topic starter
 

Thanks very much - he promises to get back to me early next week, if not then I could definitely do with your help.


 
Posted : 17/01/2013 12:47 pm