Licensing vs Copyright transfer

Ugh... tough topic, right? At one point, I was completely clueless about this and didn't even want to bother with it. At that time, I was looking for inspiration from specific illustrators, and I remember they didn't worry much about it, so I thought "Why should I then?".

Actually, the topic is very complex and there are many opinions about it! Some prefer to do the work and move on peacefully, while others prefer complex licensing calculations that might scare clients away. I do something in between, but this is my personal approach that might not work for everyone. Nevertheless, since you're here, this topic is relevant to you, and I'll be happy to share my "tricks" 😉

Licensing vs Copyright transfer

First, let's define the difference between these two concepts.

Licensing = "renting usage rights" – in simple words, this is selling rights to use your work for a specific period, in a specific place, for a specific audience and specific purposes, which are discussed in advance with the client. After the licensing period expires, the client can no longer use this work, but they can return to you to extend their license.

Licensing can also be Exclusive (the client and only the client can use your work for the entire licensing period) and Non-exclusive (the client uses your work as intended, but you have the right to license it again to another client without waiting for the license to expire).

Copyright transfer = "selling ownership rights" – this is a complete transfer of your authorship to the client, essentially allowing them to do whatever they want with your work – change it, sell it, use it anywhere they want, whenever they want, and forever. In most cases, copyright transfer also restricts you from publishing the work in your portfolio, since the client has "taken away" your ability to be the creator of this work.

Why clients think they "own" your work

This is a very common myth: "I paid for it, so it's mine", but unfortunately, it's quite frequent in our industry. Clients think that by buying the work, they can do whatever they want with it, because now they "own" it! But this isn't true and you need to know how to communicate this idea and your value to them.

Great design and illustrations create brand visibility, improve it, and attract the attention of the business's target audience. All of this should be considered and paid for accordingly.

The important question here is – why? Why does the client need copyright? What will they do with it?

I understand that the client wants to pay once and not think about having to come back and pay again in a few years – sounds like a "subscription to an artist", doesn't it? But even in this case, they don't need to "own" all the copyright to the work. Being professionals, we should be flexible, and we can offer the client unlimited usage (forever), but WITHOUT copyright transfer. That is, the client can still use the work ONLY as you agreed, but you remain the author, can use this work in your portfolio, submit it to exhibitions, and possibly license it to other businesses (if you gave unlimited non-exclusive rights). Such "forever" usage costs more than just a 2-3 year license, so factor this into your quotes.

A good way to decline copyright transfer:

I'm not able to accept a copyright transfer, but I'm happy to grant typical licence based on the usage, territory, and duration you require. Let me know how you plan to use the artwork, and I'll suggest a licence that fully covers your needs.

Shapes Exploration | Irene Neyman, 2022

Real example

One of my regular clients recently realized that they don't own the rights to the illustration, even though every time before starting a project we figuratively "sign" collaboration terms which always state that I don't transfer copyright, only usage rights (turns out they didn't even read them?). And before starting the last project, they were very surprised that they wouldn't own all the illustrations they would pay for (the price wasn't high tho, as I try to maintain relationships with regular clients and have special conditions for them). They said they didn't want to have a "subscription" to an illustrator when they'd need to come back to me in a few years and pay again for what was done long ago. They also had the fear that these illustrations, being non-exclusively transferred to them, could become part of another brand, since I could license them to someone else.

Everything is logical, but it's also logical that with such a request, the project price would increase by at least 2-3 times, considering their desire to completely "own" the final work. And their budget didn't allow for that.

What to do? Give in or insist on your terms? Making an exception once, there's a chance of "getting used to it".

You need to know how to handle such requests and maintain communication, because it's only in our hands to explain why our work should be valued just like any other, and how much value we put into it to make it all work for THEIR business, which will bring THEM money ALL THE TIME.

The communication topic was discussed in one of my previous newsletters, if you want to give it a read! 👇

How to protect yourself

An artist is exactly the same business as all others, and earning from licenses is how this business works. Having created an illustration once, it can work for you for a very long time and bring you profit, if you know how to use it.

The main thing is to discuss all licensing terms with the client upfront – how and for how long they will use your work.

AOI has a good resource with a short and simple description of licensing differences (which you can even send to clients!).

Be sure to include usage rights terms in your contract or quote. By signing this, the client agrees to work exactly this way. But actually, I would double-check their agreement – as you already know, I had a case where a client signed my terms, which they apparently didn't read, and after a few years was very surprised why it costs money again 🙂

Here's an example of how this can be specified in your terms:

Client is granted [non-exclusive] rights to use the commissioned artwork for the agreed purpose [web/print/marketing materials] for a period of [X years/perpetuity]. Any usage beyond the scope defined in this agreement requires additional licensing fees. Client may not resell, redistribute, or sublicense the artwork without written consent. All copyrights, including the right to create derivative works, remain the exclusive property of the Artist.

The Graphic Artists Guild Handbook (they should start paying me for recommending their book, lol!) also has a lot of useful information about licensing and copyright, as well as many examples of how prices are formed. For reference, licensing varies between +50-200% of the basic bill, while copyright transfer is somewhere between 200-300% – so this SHOULD BE very expensive and you can't just "give away your work" if they paid for it. But again, this is my personal decision and principles that I follow after many years of practice.

Well, I can talk about this topic and the importance of valuing yourself and your work for a very long time, so write in the chat or in the comments if you have questions about this topic!

And of course, thank you for reading!