GUIDES & TIPS

Five questions answered for navigating usage licenses

If you’ve commissioned illustration before, you’ll probably be familiar with usage licenses as a key component – they ensure you have the permissions you need to use the illustrations created and that there is a fair agreement in place. Usage needs will vary from project to project and they play a part in how much illustration costs to commission. So there can be a few things to consider, but once you know the core components it doesn’t need to be daunting.

We’ve put together this guide so you can take on usage discussions with confidence, and ultimately get what you need from your illustration agreement.

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Why do you need a usage license?

When an illustrator creates something, the copyright to that artwork automatically belongs to them, and permission to use it is granted in the form of a usage license. The license consists of agreed upon uses and terms, and are important to discuss and define when commissioning illustration for two reasons:

1. Cost – the amount is in part proportional to how it will be used.
2. Protection – use of illustration in non-permitted ways is copyright infringement.

Generally speaking, illustrations used far and wide would usually cost more than those used once or in more limited ways, so it can save you money to be specific. And with an appropriate agreement in place you'll be able to use the illustrations for what you need to confidently.

What makes up a usage license? 

There are four main components to a usage license, each tailored to your project. As always there will be variations and individual situations to be considered, but it boils down to the following:    

1. Purpose – this is where you define what & who the illustrations are for. It could be with a very specific purpose in mind e.g. as part of a campaign or activity, or something more broad such as a brand’s look and feel. 

2. Media Types – these are the outputs or media that the illustrations will be used on or as part of, e.g. out of home ads (OOH), social media ads, organic posts, printed or online editorial, packaging, printed brand collateral, point of sale (POS) etc.

This part of the usage license is the most customisable as there are lots of possibilities and combinations that can be listed out. There are also a few common groupings that can be useful ways to define your media, for example: 

In advertising & marketing:

• All ‘below the line’ printed and digital media (e.g. organic content, direct marketing, PR, editorial – i.e. reaching direct audiences)
• All ‘above the line’ printed and digital media (e.g. online and printed paid for ads and promoted content – i.e. reaching wider audiences)
  
• All media excluding TV (i.e. all above and below the line media with the exception of TV advertising)

 In branding: 

• All brand owned and operated digital channels (e.g. website, app, social media channels, newsletters)
• All printed marketing collateral (e.g. brochures, business cards, promotional tote bags) 
  

 3. Territories – this is thought of as where in the world the use will take place, e.g. where the campaign will be rolled out, where the item will be distributed, or where you operate. It might be just one city, a country or continent, a combination of areas or even Worldwide.  

If your project will only be seen digitally and technically accessible worldwide, think of the territory as where you operate or your audiences are. 

4. Duration – a period of time that the use will take place over. If it’s a campaign, this is usually a shorter amount of time e.g. 6 months or 1 year, compared to illustrations created as part of a brand or look and feel that might be in use for 3 or 5 years for example. Some commissions require a much longer usage license and will find that an 'in perpetuity' license is best, which grants the agreed usage terms for an indefinite amount of time. 

For printed or physical items that feature illustration e.g. a book, magazine, brochure or product, it may make sense to define a specific print run or number of units as opposed to a duration. 

Why do illustrators charge for usage?

For an illustrator, their intellectual property (IP) is an important part of their livlihood; they have unique creative skills and talents that will add value to a project, as well as having developed and invested in their way of working over many years of studying and practice.  Therefore, as well as considering how long it will take to complete the work, an illustrator will take into account the reach, context and scope of a project in a way that is proportionate to the value gained by using illustration. 

It's not always a simple equation, and there are lots of contexts and circumstances to consider, but the overall principle is for the fee to fairly reflect those considerations, and it's often a discussion to understand everyone's needs.  

Is it possible to own the illustrations outright?

Commonly referred to as 'buy out', an illustrator can agree to transfer all rights and relinsquish ownership of an illustration. It's an option that an illustrator will want to consider very carefully however, and request suitable compensation for, because it would mean they'd no longer have any control over the artwork, where it is seen or what it's associated with, and wouldn't be able to call themselves the creator. And on the flip side the recipient will have full control of how the artwork is used, also gaining all future value from it.   

Many illustrators will understandably want to avoid this option, and for some projects it may be out of budget range. But there are alternatives that give huge freedom of use without the artist relinquishing their rights, such as an exclusive 'All Media, Global, In Perpetuity' license. This option allows use of the artwork anywhere indefinitely, for the purpose agreed, whilst the artist retains their rights as creator.  

How much does usage cost?  

There are lots of ways usage licenses can vary and so the cost is different from project to project. As a general rule, the wider the reach of the project the more expensive the license will be, however there are some other factors that play a part such as the purpose and the context of the activity. Whilst usage is taken into account, illustrations created for an educational or charitable purpose, for example, wouldn't be charged the same as for a commercial activity. 

The best thing to do is to ask an illustrator to quote, providing as much information as you can about the work you need creating and the ways you need to use it. The more information you can provide the more accurate the quote will be, but it's always a conversation – if your budget is more limited, there could be ways to bring costs down and find a middle ground.

Read our guide to costing illustration to get on top of the details! 

Illustrations by An Chen.

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