Hello...I have a company that wishes to purchase my .psd files of book covers to make audio covers themselves. I offered to make the files, but they want the psd and to do it themselves. They said
We are interested in licensing the cover artwork for our audiobook editions. Please send me the licensing information for the following titles:
I have no idea what they want here. Isn't this a problem with the stock images I purchased as well? If someone can point me in the right direction, I'd appreciate it.
You are using stock images in your creation? Then you must ask/read stock company licensing rights and what they allow you to do with files purchased/downloaded from their site.
I am yes, most from Shutterstock.com. I've altered them, of course, but do I just send them Shutterstock licensing info?
There are two separate issues here.
One is the stock image rights. You may or may not be licensed to on-sell them, but perhaps the other company can do as you did if they need the rights.
Secondly, this company wishes to avoid future possible legal issues which is why they wish to purchase the rights to own your I.P., so you'll need to consider all the options here. You may wish to consult with someone versed with such legalities.
"Secondly, this company wishes to avoid future possible legal issues which is why they wish to purchase the rights to own your I.P., so you'll need to consider all the options here. You may wish to consult with someone versed with such legalities."
The second issue is easier in my opinion. Actually not issue at all. After figuring out stock images I would ask them what they need from my side. Usually they know exactly what they need and want to be signed. Then read agreement or ask someone who can help demistifying that agreement/paper if anything is not clear. Most of the time it is easy part unless you ask someone who will point to the inestimable value of your work and all catches which can occur if you are not yet discovered genius.
Secondly, this company wishes to avoid future possible legal issues which is why they wish to purchase the rights to own your I.P., so you'll need to consider all the options here. You may wish to consult with someone versed with such legalities.By @Stephen_A_Marsh
If they asked for “licensing information” as it said in the original post, they might not actually need to “purchase the rights to own.” Those are two different things in themselves.
The creator retains rights unless those are sold. For many agreements (including practically all royalty-free stock), the actual copyright is never sold, what is purchased is a license to reproduce the work. Because the request used the word “licensing,” that might be all they need, just as in a stock license purchase. If so, then maybe they just need a licensing agreement drawn up for the PSD files that carrie1009 is creating, and that would be normal: carrie1009 retains the original copyright, while licensing reproduction rights to the client.
If the client actually intends to purchase full IP rights/copyright (not just licensing), that might be “work for hire” and happens under different rules. One of which is that carrie1009 might no longer have the rights except to use it in a portfolio (if that’s in the agreement).
The Shutterstock agreement probably allows carrie1009 to use the stock images in content that is then licensed to their client, but check their legal agreement.
Completely independent of that, some clients may ask for a list of the licensing status of every image used in the project, just to make sure there won’t be any legal problems.
There are probably some sample licensing forms on the Internet. But to make everything legally clear and fair for both sides, including clearing up how the Shutterstock content is handled, it is definitely a good idea to consult with a legal professional who is familiar with IP licensing for businesses. Especially to clear up whether the client wants a simple license (reasonable fee) or outright purchase of all IP/copyright (carrie1009 should charge a much higher fee).
As noted, purchasing physical files and purchasing usage rights are different things. You should be able to negotiate a non-exclusive usage license. Ask for their budget to start. Find out if they just want book rights, how many editions, what about promotional materials like posters and advertising, and so on.
As for Shuitterstock, I'd contact their customer support and find out if you are allowed to resell derivative images. They can give you guidance so you don't get sued.
I did contact Shutterstock and they said I needed a premier license and someone would contact me soon.
"If so, then maybe they just need a licensing agreement drawn up for the PSD files that carrie1009 is creating, and that would be normal: carrie1009 retains the original copyright, while licensing reproduction rights to the client."
This sounds like what they want. I'll try to give them a call tomorrow to see if that's correct.
Thanks so much for your input everyone! It's much appreciated!
Licensing usage rights is the most common kind of deal. Most of the time its not a full buyout. I would itemize the cost of the Shutterstock license to your client and see what they say. They have a budget, either it fits or they will look elsewhere.
ok, well the 3 images from Shutterstock are $350 each. The 3 from Depositphotos is $220 for all three. That's $1270 for just the images. I've already made the book covers, and received payment. Do I expect more for my time for doing this? It seems hideously expensive so far. They've been a good customer, so I'm guessing I do this part for free. I'm ok with that, just wondering if I'm missing anything. 😃
This is a good learning experience! Hopefully you didn't lose money on the deal.
If you are going to use stock images, check the license agreements ahead of time. Shutterstock may cost more or less than iStock, Adobe Stock, etc.
Also ask prospective customer if they want exclusive rights to use and reproduce or if you can license same images to other customers. That's a very important detail and will greatly impact what you should charge them.