What You Need to Know about Business Use of Third-Party Photos

Bricker Graydon LLP
Contact

Bricker Graydon LLP

[co-author: Amilcar Torres]

In Part 1 of this two-part series, we introduced you to the various licensing models and special terminology unique to the photo/image licensing business. But knowing the terms and terminology is only half of the battle. Across the spectrum of rights/expense, from commissioned commercial work to royalty free work for editorial uses, there are any number of additional restrictions and limitations that can surface at various points and in a variety of documents in the transaction process. These additional limitations on licensed use can take a variety of forms from one vendor to the next. Consider this a road map to what you should be on the lookout for . . . and where you might find it.

Representative Restrictions on Use

The following is a non-exhaustive list of possible restrictions a stock image agency might place on your use of licensed images:

Location/Placement: Like in real estate, location is important. Where the image will be used has an impact on its price. Use on the cover of a book/magazine or on the landing page of a website will be more expensive than use on an internal page.

Size: The size in which an image will be produced also often impacts the price. Size can be measured in terms of portion of a page (e.g., quarter page), or in inches (e.g., 5 x 4 inches), or in pixels (e.g., 2,000 x 3,500 pixels). Be sure that any size limitation encompasses the maximum size you might require.

Medium: The medium in which you will distribute the licensed work makes a difference. Digital is more susceptible to unauthorized harvest and use than print is. Licensors understand this and charge accordingly.

Quantity: Licenses may cap the number of print copies or digital access points, make sure that any such cap covers both the initial and projected quantities needed and be equally sure to go back for license extensions before going to a reprint/reissue.

Territory: Specifying world rights will certainly cover every use you might make, but you will end up paying for rights you probably don’t need. For digital uses, consider geo-blocking your content so that a territory-restricted license will be sufficient. Price the difference first and choose accordingly.

Duration: Many licenses will be described as perpetual or unlimited in time, but Rights Managed licenses tend to have limited time durations and even some Royalty Free licenses will have long but finite terms (e.g., seven to ten years or more) just to avoid open ended commitments. Watch for these and be sure to calendar them in a way that reminders are sure to pop up in sufficient time to alert you to get an extension or replace the image before the license is set to expire.

Language: Some licenses limit use of the image only in works in a specified language.

Exclusivity: There is rarely any confusion about the meaning of “nonexclusive.” But “exclusive use” can be defined by any number of metrics – e.g., exclusive license for use on apparel; exclusive use in connection with broadcast or streamed music, etc. Be sure to confirm that any exclusivity is clearly and unambiguously described.

The language used to express these limitations is critical. If you see a term that is unfamiliar to you, consult the Picture Licensing Universal System (PLUS) terminology glossary, developed by a coalition of associations representing photographers and other affected constituencies: And when in doubt, add your own definition somewhere in the purchase documents.

Where to Find these License Limitations

Now that you know how to carefully examine any limitations on your license rights, where must you look to find these limitations? It would be terrific if there were one universal place to go, but more often than not, the efficiencies of business communication have resulted in dispersion of the terms of the deal. They may appear in a pre-transaction document (in print or online form) that might be called a bid, a quote, an estimate, an order form, or the like. Although such a document, in and of itself, is merely an invitation to negotiate and not a binding contract, your acceptance of the offer, either by issuing a purchase order or simply making payment, will have the effect of incorporating the proposed terms, as well as any terms that might have been contained in any set of “Standard Terms” or “Terms and Conditions” attached to the offer document.

Sometimes there is a formal license document. This is especially likely if your transaction is affected online. In this event, in all likelihood you will be asked to click your assent as a part of completing the online purchase. Do not do this without closely examining (and printing for your records) the terms of the license that just flashed by. It will be important to preserve this document as part of your business records (as what is available online may evolve over time and may no longer accurately reflect the terms you agreed to).

Sometimes the terms appear in a post-transaction document, like a delivery memo, change order, or invoice. Although you can’t be forced to accept these terms if they were not disclosed prior to commitment, if you pay the invoice without examining it you will likely have assented to those after-the-fact restrictions.

It’s said that you get what you pay for. When it comes to photography, that doesn’t necessarily mean that low price equals low quality. Instead, a low price for a photograph probably means sharply limited rights. So, look for a good price, but keep an eye out for the license terms and make certain they cover what you need lest you end up on the wrong end of a cease-and-desist demand. 

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Bricker Graydon LLP

Written by:

Bricker Graydon LLP
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Bricker Graydon LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide