FAQ: the 20 questions beginners ask most

These are the questions we hear most often from people new to anime licensing. Each answer is short and points you to a fuller article.

Key terms

Royalty: A percentage of sales paid to the licensor.
MG (minimum guarantee): The minimum royalties you commit to pay over the term.
Advance: Part of the MG paid up front, usually credited against future royalties.
Exclusivity: A promise that no one else will get the same rights in the same scope.

Getting started

1. Do I need a license to sell anime merchandise? Yes, if your product uses characters, logos, names, or artwork from a protected title. See 1.2.

2. Can I license directly from Japan? Sometimes. For many titles, rights in your region are handled by a regional agent instead. See 2.4.

3. How do I find out who owns the rights? Check official websites, credits, existing licensed products, and publisher contacts, or ask a specialist. See 2.5.

4. Is my company too small? Not necessarily. Licensors look for fit, credibility, and realistic plans, although top titles are often very selective. See 5.1.

5. How long does a first deal take? It varies widely. Several months from first contact to signed contract is common, and approvals add more time. See 6.2.

Money

6. What royalty rate should I expect? It varies by deal. Consumer products royalties commonly fall in a high-single-digit to mid-teens percent of wholesale range. See 4.2.

7. What is an MG, and do I have to pay it if sales are weak? Usually yes. The MG is owed even if sales fall short. See 8.3.

8. What is the royalty calculated on? Commonly wholesale price or net sales, depending on the contract. See 4.3.

9. Will taxes be withheld on payments to Japan? Often, yes, depending on your country and any tax treaty. Consult a tax advisor. See 7.5.

10. Who pays for samples and approvals? Usually the licensee pays to produce samples. Check your contract for other costs. See 5.5.

Rights and contracts

11. Can I get exclusive rights? Sometimes, for a narrow category and territory, usually at a higher cost. See 4.1.

12. Can I sell worldwide online? Only in the territories your license covers. Online sales that ship outside your territory may breach the contract. See 4.1.

13. Can I use any artwork I find? No. Use only official assets supplied or approved by the licensor. See 5.5.

14. Can I hire a manufacturer to produce for me? Usually, but many contracts require the licensor to approve factories. See 7.1.

15. What happens when the license ends? You may get a short sell-off period to clear stock. See 4.4.

16. Do I need a lawyer? For a first deal, it is strongly recommended. See 7.7.

Working with Japanese licensors

17. Do I need to speak Japanese? Not always, but clear, polite English and professional translation help. See 6.3.

18. Why are approvals so detailed? Licensors protect character quality and consistency for fans and all committee members. See 6.2.

19. What if I disagree with feedback? Ask respectful clarifying questions and offer alternatives rather than pushing back hard. See 6.1.

20. How can AniBiz help me? We help you find titles, identify rights holders, prepare proposals, and navigate the process. See 10.1.

Example

Before its first call with a licensor, Moonfox Apparel's founder reviews questions 6, 7, and 12. When the agent proposes an MG and asks about online sales, she is ready to explain that Moonfox ships only within the US and Canada, which matches the territory being discussed.

Common mistakes

Treating these short answers as legal or tax advice rather than starting points.
Assuming an answer applies to every deal; terms vary by licensor.
Skipping the linked articles when a question is central to your deal.