Creators

Licensing and format income: how to keep your rights

Updated: 2026-08-17 Holdwise editorial team

With a licence, you keep the rights to your work. You give someone permission to use it for a set period, in a set territory and for a set use. You can license the same work several times, so the income adds up over the years. The value of a licence depends on the contract terms. At Holdwise, we keep this answer up to date and change it when the rules change.

The three contract terms

Term. After a licence for two years, you can use the rights again. With a perpetual licence, the other party can use the work forever. Charge for this difference.
Territory. A worldwide licence costs more than a licence for one country. If you license each territory separately, you can earn from the same work several times.
Use. Broadcast, paid advertising, merchandise and adaptation are separate permissions. You can grant them together if you choose to. If you grant them by accident, you lose income.

Agree exclusivity separately from these three terms. With an exclusive licence, only the licensee can use the work in that market. This also excludes you, so set a higher price for it.

Formats

A format (the recognisable structure of a show or series) is usually licensed, and a sale is rare. It comes with a document, often called a bible, that describes how the format works. Under copyright law, only the worked-out expression is protected. The bare idea stays unprotected. A documented format with scripts, graphics and rules is much easier to defend than a concept you described in a meeting.

Withholding on royalties

Foreign payers often deduct tax from royalties at source. Under a tax treaty, this tax can be lower or zero. For recipients in the Netherlands, the American rate on royalties is zero. See US withholding. Send the residence form to every party that pays you, and note its expiry date in your calendar.

Where the rights belong

If you own the rights personally, they are hard to transfer and hard to value. If your holding owns them, they are kept apart from the risks of the operating company. The holding can license them to your own operating company on normal market terms. When you sell, the rights go to the buyer with the company. See selling your channel or brand.

Take a lower customary salary if a new BV is still unable to pay the full amount, for up to three years. A prior consultation with the Tax Administration gives certainty in advance. Also borrow up to €500,000 from your own BV. The lower salary is what saves tax. At €36,000 in place of €58,000, you keep about €7,100 a year more. After a later dividend, about €2,800 of that remains. The loan gives you access to money, but your tax stays the same. Calculate it with your own figures. With licensing income spread over several years, review the salary every year, because it is a yearly amount. See how creators pay less tax.

Free advice

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Part of Doing Business in the Netherlands, the complete 2026 guide.

Frequently asked questions

How do I price a licence? +

Look at the term, the territory and the use. After a two-year licence, you can use the rights again. A perpetual worldwide licence that includes paid advertising is worth much more.

Can I protect a format? +

Partly. Under copyright law, only the worked-out expression is protected. The bare idea stays unprotected. A documented format with scripts, graphics and rules is much easier to defend.

Why is tax deducted from my royalties? +

The paying country withholds tax at source. Under a tax treaty, this tax can be lower or zero. For Dutch recipients, the American rate on royalties is zero once the payer has your residence form.