While assignments and licenses may be of most interest to free-lance artists and authors who are not dealing with a company on a take-it-or-leave-it basis, even entrepreneurs may have have occasion to consider licensing others the right to reproduce a particular item.
In transferring copyrights to others, several issues should be considered and resolved in advance (preferably in writing).
Very Important Questions to Answer Before Making Transfers

• If the work is commissioned, is it or can it be regarded as “for hire?”

• If not, what rights are being transferred? All or them, only the right of first publication or, e.g., a right to use or reproduce for other limited purposes?

• Can the publisher use the work (or parts of it) in another product line or change the method of selling it?

• Can the publisher license others to use any part of the work in/on the same or unrelated products? If so, on what basis must payment be paid?

• To what extent is the artist restricted, for example, in being able to sell substantially similar (infringing) works?

• In a long term relationship, what happens to the copyright if the publisher loses interest or goes out of business? Does the copyright return or linger in the hands of uninterested or incompetent people? (Minimum royalty provision may help avoid such problems — in any case, heed the voice of sad experience!)

• On what basis will payment be made? For example, hourly wages, a lump sum or royalties based on sales?

• If royalties are due, on what basis will they be computed, e.g., per item or a percentage of gross sales? (Avoid net sales or profits; it is too easy for the purchaser or licensee to play games with expenses allocated to particular sales!)

• Does the publisher ask to be indemnified for expenses of defending third party suits? This is pretty common. However, anyone can sue anybody for anything! Even if you win a suit, expenses can be very high; are you being paid enough to accept this risk?