Arcade machine cabinet artwork is a crucial aspect of gaming culture, often protected by licensing agreements to ensure legal use. The most common agreements include:

1. Royalty-Based Licensing: The artist or copyright holder receives a percentage of revenue generated from the arcade machine’s profits.

2. Flat-Fee Licensing: A one-time payment grants the licensee full rights to use the artwork on cabinets without ongoing royalties.

3. Exclusive vs. Non-Exclusive: Exclusive agreements restrict the artwork to a single licensee, while non-exclusive allows multiple uses.

4. Limited-Term Licensing: The rights are granted for a specific duration, after which renewal or renegotiation is required.

5. Work-for-Hire Contracts: The arcade manufacturer owns the artwork outright, with no residual rights for the original artist.

Understanding these agreements helps arcade operators and artists navigate legal and financial aspects while preserving creative integrity. Always consult legal experts before signing any contract.