Standard Forms and Contracts - The Graphic Design: Reference and Specification - page 191

Compensation and the notion of intellectual property is a good topic for a designer to
discusswithanattorney.Youcanalsoseekinformationfromvariousdesignorganiza-
tions,andsharethisinformationwithyourpeers.Knowyourrights,knowyourclient's
needs, and know the laws at the intersection of these two things.
Factors to consider when thinking about the material worth of usage rights and your cor-
responding fee for a design include
•Thevalueplacedonsimilarwork(perhapsevenforotherclients)
•Thecategoryormediainwhichtheworkwillbeused
•Thegeographiclocationorareaofdistributionforthework
•Howtheclientwillusethework(forwhatpurpose)
•Howlongtheworkwillbeused
•Howmanyitemswillbeproducedthatincorporatethework
Licensing Options
Mostoftheworkgraphicdesignersdowillbecommissionedbyaclientforamutually
agreeduponsumorfixedprojectfee.However,somedesignerslicensetheirworkto
clients instead. Licensing means allowing or granting use of an original work for varied
compensation based on the license. Usually, licensing takes one of these two forms in
design:
Use-based Licensing
The designer's compensation is based on how the work is used.
•Thisoftenoccursforimagessuchasillustrationandphotography.
•It'sfrequentlynegotiatedforpublications,printordigital.
•Additionaluses,orchangesinuse,requireadditionalagreementsandcompensation
to the designer.
•Paymentbythelicensee(client)istypicallymadetothelicensor(designer)beforethe
work is used.