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In this video tutorial, the speaker discusses the licensing of artwork and key considerations for contracts with companies. They recently collaborated with Control Prepaid Mastercard to feature their artwork on a card. The first crucial aspect to examine in contracts is payment structure—whether it’s a flat fee or royalties. Royalties involve a percentage of revenue or profit, so it's essential to clarify the terms, including what percentage applies, whether it's based on revenue or profit, and the quantity of items produced. These terms help ensure fair compensation and clarify the scope of the licensing agreement.