Liquidation for unlicensed use When licensing rights, you may want to consider agreeing in advance on the amount of damages that would be payable by the client upon a breach of contract. These are called liquidated damages. At some point in the future, the client may be tempted to exceed the original scope of the license that you have granted. Instead of coming back and renegotiating with you as they should, they might just begin unlicensed usage. (It’s a challenge that is faced all the time by stock photography businesses and illustrators.) Since you can’t know in advance the extent of.