NFT Designer/Design Royalty Agreement
Most of our designs are designed by 3rd party designers. Cipher Volt manages the royalty agreement thru an NFT. As long as the designer holds their own NFT (minted by cipher volt) for that design, they will receive a royalty payment of 10% (Royalty amount is listed on the NFT sale description) for each product sold on our www.ciphervolt.com website, that their design is on. To explain it another way; the holder of the NFT is the owner of that design and able to collect the royalty payment for that design as long as they hold the NFT for that design. Designers are able to sell their NFT on the open market and with that sale they also sell their rights to future royalties. If you sell your NFT you hand over royalty rights to the new owner. We manage the first sale of every NFT on behalf of every designer so that all designs can be verified for authenticity via a Cipher Volt account.
If you have purchased the NFT of a design that has royalty rights from a designer that pays out royalties, you as the new owner must agree to the Cipher Volt royalty agreement and tax regulations in order to receive royalty payouts. We are not able to pay out royalties to an anonymous holder of an NFT. Start the authorization process by emailing email@example.com; no royalties are able to be paid out to you until this process is completed.
We reserve the right to stop selling and/or change the price of any products with any design at any time for any reason. We reserve the right to continue to mint and sell an unlimited number of the same artwork for a design without any royalty payment tied to it. We may for example mint 100 pieces of this same artwork in the future; for example 1 of 100, 2 of 100 and so on but they will just be a print similar to a reproduction print of a painting and not as valuable as the artwork with the royalty payment tied to it.
Here is the agreement to be agreed on and signed by every designer and new owner of the NFT in order to receive royalties.
Cipher Volt designer royalty agreement The following terms and conditions apply to all designer royalty agreements.
- You hereby grant and assign Cipher Volt the exclusive worldwide rights to produce, market and sell any and all products with the design you created.
- The royalty fee is for the sale of products to our customers via our website CipherVolt.com. We cannot guarantee how many sales will occur.
- You understand that in the different product set-up process, we make modifications to your design, but not limited to, resizing, adjusting, etc, including changing out the token in the design with any token we choose. We reserve the right to convert and adjust your design to fit any product we offer or will offer.
- Cipher Volt is not financially responsible for any refunds or estimated losses due to customer refunds or failed payments. We do our absolute best to ensure the highest quality and to fix any and all potential issues that may have caused a customer refund or failed payment. The total amount lost will be deducted from the royalty payment.
- You acknowledge that you have the rights to authorize distribution to Cipher Volt. By default, global distribution rights are assumed, but specific territories will limit distribution and supersede global distribution.
- You, as the copyright holder of the design for t-shirts and all other products made by Cipher Volt allows us exclusivity to the design indefinitely or until and unless we stop using the design on any products. If you do not own the NFT with the rights you do not own the design.
- You understand that Cipher Volt pays designers every 6 months and final reports are available per our reporting request form and verification for all sales. This means that on any given 6 month period you may see a positive or negative adjustment to your sales based on actual closed sales. We pay royalties on July 15th of the calendar year for sales that occur from January 1st thru the last day of June of that calendar year and on January 15th for the royalties accrued between July 1st and the last day of December for the previous calendar year. We pay out the royalty to the person holding the NFT on the payout dates as long as those NFT owners have verified ownership. We will ask the new owner of an NFT that pays royalties to verify ownership by sending a small (generally a couple of dollars or cents) specific amount of ETH from the wallet holding the NFT to a wallet we provide. If you sell the NFT royalty rights before the payout day you sold your royalty rights to the new owner. The royalty will be paid to the wallet holding/owning the NFT for that specific design.
- Public Domain and Other Non-Exclusive Content: Some types of design content, such as public domain content, may be free to use by anyone, or may be licensed for use by more than one party. We will not accept content that is freely available on the web unless you are the copyright or trademark owner of that content. For example, if you received design assets for your design content from a source that allows you and others to re-distribute it, and the content is freely available on the web, we will not accept it to distribute. We do accept public domain content, however some distribution channels may choose to not sell a product with public domain assets in it if its content is undifferentiated or barely differentiated from one or more other designs.
- Designers/Clients found engaging in fraud, including distributing material that violates another's copyright, trademark, impersonation, providing phony, inaccurate, or deceptive personally identifying information in their work in any shape or form, will have their design removed from sale and will not be entitled to royalty payments or refunds. If you purchased the NFT it is your responsibility to do your own due diligence in this regard.
- US residents (i.e., clients using an address inside of the United States) are subject to a possible withholding tax of up to 30% All US designers and NFT owners that pay a royalty must complete a 1099-misc form from the IRS available at https://www.irs.gov/pub/irs-pdf/f1099msc.pdf
- Non-US clients (i.e., clients using an address outside of the United States) are subject to a possible withholding tax of up to 30%. Many countries have tax treaties with the US, and this amount can be reduced from down to possibly 0% based on the country of origin. All non-US designers and NFT owners that pay a royalty must complete a W-8BEN (or W-8BEN-e if using an organization name) and provide a copy of the form (paper or digital) to Cipher Volt to receive royalty payments. To see if your country qualifies for the waived/reduced tax, see pages 35 and 38 of https://www.irs.gov/pub/irs-pdf/p901.pdf .
- We can guarantee that the products printed with your design(s) will be made available on the Cipher Volt website. We reserve the right to stop selling any products with any design for any reason at any time.
- If you miss payments from us due to ETH network errors we can go back no more than three years to process payments but you will only receive royalties for the duration of time you held the NFT that landed on payout dates that you have missed. It is important that you keep your e-mail address updated with us. The ETH network fees will be deducted from your royalty payments.