How do Usage Fees work?

[Will Ruocco]

Can someone explain how and when to apply usage fees? If I do art for a poster and it is later used for print ads, tees or other merchandise how do I go about charging the client? Am I out of luck if I don't declare usage terms upfront?

[art chantry]

you can go after them legally, but you'll have to bring in lawyers and crap. your rights have been violated and you have been ripped off. however, if there is no agreement beforehand (hopefully in writing) the client could have misunderstood what they are buying, and honestly, nobody pays attention much to artists' rights. talk to the client and explain to them where they went beyond 'first use'. they will balk and never hire you again but you don't want to work with them anymore. in the future have them sign a remedial primitive contract that points out what exactly they are buying, then there is no surprise and, more importantly, no deniability.

it's all very hard, especially when we charge so little money for what we do. the one thing i've learned (the hard way) is that if you charge too little, you have to consider it a 'freebie' and kiss it goodbye. they don't respect or fear your clout at all. when you charge a LOT, it's suddenly more dangerous for the client (they are afraid of money) and with a large amount in question, you can afford to pursue it in our expensive rigged legal system. charging in the middle is closer to charging too little, depending on how big the client is.

go buy a 'graphic artists' guild pricing and ethical guidlines'. it's a good source for information. read it from cover to cover.

[Will Ruocco]

I'm not in a situation where I need to go after someone legally. I just would like to be aware of what I need to do to avoid a legal or financial battle on future projects. I've been flying without contracts for a while.

How much do you charge for each use, since the art is already completed? A percentage of the original design fee?

[art chantry]

you'd have to check on the legalities in that book i mentioned, but a copyright buyout is usually again as much as the original cost (of the illustration), if i remember correctly. you'd have to check on that. i goes to show that the value of the overall piece is priced not on what it may be worth, but on how much you initially charged for it. if you charged $50, then the client has the option to purchase total copyright for another $50 (technically) if you so wish to sell. not a good deal for you (the artist) no matter how you look at it.

as for indiviual usage (not a buyout), there are no standards. it's whatever you and the client think is fair.

[DWITT]

I'm billing a client today, this will help. Thanks!

[art chantry]

also, keep in mind that (after the buttholesurfers/touch and go fiasco) there is NO SUCH THING as a 'verbal contract'. a contract is what is written down on paper and signed by both parties. all else means absolutely nothing in the eyes of the law.

[DWITT]

I've heard that said enough to take it seriously, especially after getting fucked a few times.

Minor fucks, but fucked nonetheless.

[DaveGink]

Can someone explain how and when to apply usage fees? If I do art for a poster and it is later used for print ads, tees or other merchandise how do I go about charging the client? Am I out of luck if I don't declare usage terms upfront?

As an artist...everything you create you automatically own all the rights to. The only exception is if you have a contract with a client before hand which grants them some or all ownership of the work immediately upon creation of it. Contracts which automatically give ownership to a client of your work are called "work for hire". These are generally considered unethical.

Usage rights are what you sell to the client when you do a job for them. Generally a client is not actually paying you for the time you put into the job but for the right to use the work. Usage right fees are often dictated by who the client is, how the art will be used, how often it will be used and what benefits there is to the client in using your art.

The Graphic Artists Guild does help to set these fees. But are often high compared to many parts of the country.

[art chantry]

dave -

everything you say is correct. the only thing i want to say is that nobody pays any attention to artits' rights out there. they always assume they own everything - period. sort of like buying a piece of land or a vacuum cleaner - it's theirs, they bought it with their money, they can do with it whatever they want.

you have to protect yourself against that general thinking by using a contract to spell it out.

[DaveGink]

dave -

everything you say is correct. the only thing i want to say is that nobody pays any attention to artits' rights out there. they always assume they own everything - period. sort of like buying a piece of land or a vacuum cleaner - it's theirs, they bought it with their money, they can do with it whatever they want.

you have to protect yourself against that general thinking by using a contract to spell it out.

You are 100% correct there Art!!!!!