"Royalty-free stock."

You And the Law

Attorney Joel L. Hecker lectures and writes extensively on issues of concern to the photography industry. His office is located at Russo & Burke, 600 Third Ave, New York NY 10016. 1 212 557-9600.


ROYALTY-FREE STOCK -- SHOULD YOU OR SHOULDN'T YOU?

Traditionally, stock photo sales (which are really licenses, or sales of usage rights) are priced according to the market, extent, and duration of the use. For example, unlimited use of a photo for one-year worldwide would cost more than a one-time insertion in a magazine for United States use only. This makes imminent sense if one presumes that tight control is maintained over use of the images being licensed.

This concept is now being challenged in some markets through the expanding use of what has been called, royalty-free stock. Royalty-free means the purchaser has unlimited use of the images without restriction, excluding, of course, resale. One method of sale is to load up a CD disk with images and to sell it into the marketplace.

Should you join in? That depends upon the marketability of the images slated for royalty-free. The return per image is usually very small, but the total income for volume may be substantial. High-quality, images would obviously remain more valuable as traditional royalty based stock, but general, "repeatable" images may be perfect candidates for royalty-free sales. You must balance concerns over retaining control of your images with the potential income which may be generated overall by surrendering your rights to images that lend themselves to royalty-free marketing. You need to also consider that if sales prove disappointing, it is then too late to put the "genie back in the bottle."

If you are interested in royalty-free sales, explore it carefully. Find out the costs; whether your type and style of photographs are good candidates for such sales; and what the return on your investment will be under the best and worst case scenarios. You will then be in a position to make an informed business decision. Good Luck!


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