How Nekowemon Character Licensing Works

Chapter 0: How the Nekowemon Character Licensing Service Works (Conceptual Overview)

This page provides a structured explanation of how the Nekowemon Character Licensing Service operates, designed to help users intuitively understand its framework.

While the official Terms of Use govern the legally binding conditions, this Chapter explains the system in a clear and accessible way. Within this service, we use the term “license” to organize and define different categories of character usage in a transparent and practical manner.

For specific fees, application procedures, and detailed conditions, please refer to the Usage Guide.

0-1: Overall Licensing Structure

The Nekowemon Character Licensing Service is organized into three primary layers, depending on the nature and scope of use:

1. Basic License

The foundational license required to begin any character-related business activity.

2. Extended Licenses

Additional licenses required when expanding beyond the scope of the Basic License, such as advertising distribution or ongoing monetization.

3. Project Licenses

Licenses required when producing and utilizing tangible or digital deliverables, including goods, promotional materials, or installations.

These licenses are combined depending on the intended business model and method of use.

0-2: What Is the Basic License?

The Basic License is the core license that enables planning, creative production, and communication activities using Nekowemon characters.

It allows activities such as:
・Creative production using the characters
(e.g., images, videos, visual assets)
・Posting on SNS, websites, or video platforms
・Planning collaborations, product concepts, or event ideas
・Minor monetization through automatic advertising systems
・Simple in-store POP materials such as pricing displays or signage

There is no limit on the number of characters that may be used within the scope of the Basic License.

Term: 1-year contract (automatically renewable)

Example Use Case:
A company may use SNS to plan and promote a collaborative campaign between its own products and Nekowemon characters.

0-3: Extended Licenses (Advertising & Monetization)

Extended Licenses are required when activities exceed the standard scope of the Basic License.

These licenses cannot be used independently and must always be combined with the Basic License.

Representative Extended Licenses include:

・Advertising Promotion License

Required when distributing or promoting character-based creatives through paid advertising channels.

・Content Monetization License

Required when generating ongoing or business-oriented revenue through third-party platforms.

Term: 1-year contract (automatically renewable)

0-4: Advertising Creatives

If creatives produced under the Basic License (such as SNS posts or visual content) are promoted using paid advertising placements, an Advertising Promotion License is required.

All advertising creatives must undergo prior application and review before publication.

0-5: Use of External Platforms

When using third-party platforms to distribute, sell, monetize, advertise, or charge users for content featuring Nekowemon characters, a Content Monetization License is required.

Additionally, if you are creating and distributing digital products themselves (such as downloadable goods or in-platform items), a separate Digital Commercialization Project License is required in addition to the Content Monetization License.

Examples of platforms include:
・Video distribution platforms (e.g., YouTube)
・Game platforms (e.g., Roblox, Steam)
・Digital asset marketplaces (e.g., BOOTH)

0-6: The Concept of Project Licenses

When producing products, digital content, events, or installations using Nekowemon characters, each initiative must be submitted and managed as a defined project.

Within this service, we use the category “Project License” as a structural framework to organize and manage these initiatives. However, users do not need to focus on the specific license name itself.

Instead, the practical approach is:
・What do you want to create?
・How will it be used?
・For how long will it be distributed or displayed?

Based on these elements, the applicable usage conditions, fees, and duration are structured and clarified.

The primary project categories are:
・Product Commercialization Project
(Manufacture and sale of physical goods)
・Digital Commercialization Project
(Creation and distribution of digital products)
・Event Project
(Limited-time exhibitions or installations)
・Permanent Display Project
(Long-term or ongoing installations)

0-7: Project Licenses and the Definition of “Deliverables”

When producing and using deliverables featuring Nekowemon characters, a character usage fee applies.

Under the Project License structure, usage conditions, fees, and duration are managed on a deliverable basis.

A “deliverable” refers to a distinct output defined by its design, specifications, and purpose of use.

For example:
・The product body
・Product packaging
・Promotional materials
・Exhibition displays

Each of these is treated as a separate deliverable.

If multiple copies of the same design and specification are produced, they are generally treated as a single deliverable. The license fee does not increase based on production quantity.

・Project fees are calculated based on:
・The number of characters used per deliverable
・The applicable usage period (three-month unit or per-event unit)

0-8: License Duration Structure

The duration of Project Licenses is defined as follows:
・Product Commercialization Projects
　　　→ Three-month units (renewable)
・Digital Commercialization Projects
　　　→ Three-month units (renewable)
・Permanent Display Projects
　　　→ Three-month units (renewable)
・Event Projects
　　　→ Per event

For Product and Digital Commercialization Projects, the “usage period” refers specifically to the sales or distribution period.

Planning, design development, prototyping, and other preparatory stages may be conducted under the scope of the Basic License.

0-9: Use of Crowdfunding

If you intend to produce goods using Nekowemon characters through crowdfunding, the process proceeds as follows:

Step 1
Obtain a Basic License and begin planning the product.
At this stage, determine whether the deliverable includes:
・Product body only
・Product body + packaging
・Multiple reward tiers with distinct limited items

Each variation may constitute a separate deliverable depending on design and purpose.

Step 2
Once the project plan is finalized, submit a Project License application.
Products, packaging, digital content, and limited rewards are categorized separately according to design, specifications, and intended use.

Step 3
Upon completion of prototypes, submit the deliverables for review.
After approval, you may proceed with full production or distribution.

Step 4
Launch the crowdfunding campaign according to the approved project scope.

If paid advertising is used to promote the crowdfunding campaign, an Advertising Promotion License is required.

0-10: Application and Review Process

Any public use of deliverables featuring Nekowemon characters — including sale, distribution, advertising, or display — requires prior review and approval.

The review fee is separate from the character usage fee and covers content confirmation and supervision.

Review begins only after confirmation of the review fee payment.

In certain cases, multiple review stages may occur during production. However, the application and review fee is generally charged once per deliverable.

If modifications are deemed equivalent to a new deliverable, a new application may be required.

Depending on timing and project complexity, the review process may take approximately one week. Please apply with sufficient scheduling margin.

0-11: Minimum Guarantee (MG) and Royalty Structure

For Product Commercialization Projects and Digital Commercialization Projects, the service adopts both a royalty system and a Minimum Guarantee (MG) system.

Minimum Guarantee (MG):
If the calculated royalty amount falls below the Minimum Guarantee, the MG amount will apply as the payable royalty.

Standard Royalty Rates
・Product Commercialization Projects:
　　　3% of the shipping value
・General Digital Products:
　　　3% of sales revenue

Digital Products with Monetization Features
・App / service-type products:
　　　5% or more of sales revenue
・Game-type products (including gacha systems):
　　　7% or more of sales revenue

The applicable rate category is determined based on the nature of the project.

0-12: Sales Reporting and Supporting Documentation

For Product Commercialization Projects, Digital Commercialization Projects, and the Content Monetization License, sales reporting is required in principle every three months.

The reporting obligation remains in effect even if no sales were generated during the reporting period.

Depending on the project, submission of supporting documentation — such as sales reports or screenshots from management dashboards — may be required for verification purposes.

0-13: Extension and Termination of License Periods

If you wish to extend the duration of a Project License, an extension application should generally be submitted before the expiration of the current license period.

To terminate the Basic License or any Extended License, a cancellation request must be submitted within the designated deadline period specified in the Terms of Use.

0-14: Use of AI Technologies

The Nekowemon Character Licensing Service permits limited use of AI technologies for the purpose of production efficiency and technical assistance.

Permitted examples include:
・Retopology assistance
・Mesh optimization
・UV mapping assistance
・Rigging assistance
・Noise reduction
・Background generation

However, AI technologies may not be used as the primary means of creating essential character elements, including but not limited to:
・Character design
・Facial features
・Expressions
・Sculptural form
・Core visual identity

In addition, Nekowemon characters may not be used for AI training purposes, including fine-tuning, dataset creation, or additional machine learning processes.

Even when AI tools are utilized, the licensee remains fully responsible for the final quality, legality, and compliance of the deliverables.

0-15: Prohibited Activities

The following uses are strictly prohibited under the Nekowemon Character Licensing Service:
・Expressions that replicate third-party characters or existing intellectual property, or that may result in copyright, trademark, or other rights infringement
・Use for political, ideological, or religious advocacy, or for supporting or opposing specific positions or beliefs
・Use involving obscene, antisocial, discriminatory, defamatory, or otherwise offensive expressions
・Use that significantly damages the character’s worldbuilding, brand image, or reputation
・Commercial use such as product commercialization, advertising, distribution, or display without proper authorization
・Re-licensing, sub-licensing, or transferring character-related rights or deliverable-related rights to third parties

0-16: Copyright Notice

0-17: How to Use This Page and Related Documents

・For specific fees and application procedures:
　　　　→ Refer to the Usage Guide

・To understand the overall structure and philosophy of the licensing system:
　　　　→ Refer to Chapter 0 (this page)

・For case-based clarifications:
　　　　→ Refer to the Q&A

・For legally binding conditions:
　　　　→ Refer to the Terms of Use

0-18: Governing Conditions

This page is intended to provide an accessible explanation of the Terms of Use.

In the event of any discrepancy between this page, the Usage Guide, the Q&A, and the Terms of Use, the Terms of Use shall prevail.