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Key Concepts and Contract Terms > Definition of the Licensed Property - Pg. 220

Licensing 220 Example: the creators of the Buffy television series probably deserve participation (a cut) in licenses that result from the success of that show, like merchandise, DVD sales, spinoff TV shows or movies. Sometimes, licensees who add major value to a property are also compensated with a share of any increased sales in pre-existing products (known as a "bump"). Example: the creators of the Buffy television series could ask for a share of any increased sales and rental income from the original Buffy movie, because they can logically argue that the bump is caused by their efforts with the property. Key Concepts and Contract Terms The most important thing in licensing contracts is to articulate the rights granted with extreme spe- cificity; otherwise, you could end up giving away a whole stick and getting paid for a splinter. Terms and concepts that appear in most licenses include: Definition of the Licensed Property The definition of the property identifies what assets a licensee may use. The licensor is generally looking to define the property narrowly; the licensee, broadly. In a technology license, this could be something as simple as "the Shake engine and all modifications, upgrades, and fixes not sold as stand-alone products." In a content license, the definition will center around copyrights, trademarks, and the ideas they represent. Example: "the property "Binky the Vampire Slayer" and all related copyrights, trademarks and symbols, including without limitation characters, plots, story lines, con- cepts, designs, backgrounds, locations, sets, weapons, and artwork." Sloppy language can result in what amounts to a free license. For example, the definition of the licensed technology property in this paragraph might be insufficient for a single platform license--