I'm approached by companies all over the globe interested in hiring me to produce commercial imagery for their products and services a.k.a. their brand. And when the word "licensing" or "usage" comes up in conversation, one of two things happen; either the client has experience working with commercial photographers and is well versed with licensing commercial imagery or the client seems to have no clue as to what I'm talking about.
Companies of all sizes including but not limited to digital marketing firms and small advertising agencies can't seem to (or don’t want to) wrap their head around the term “license.” This is particularly true when it comes to licensing photographic imagery for their marketing and advertising needs. Which is fascinating to me because there’s a high probability that they’ve licensed stock images, stock videos or stock music at some point in their marketing and advertising journey. Often times with unexperienced companies, there's a sense of hesitancy as if the term "licensing" is some scary or bad word. But it's really not, it’s a pretty simple concept.
So in this article, I'd like to 1.) Address what a usage license is 2.) What a usage license isn't and 3. Help companies understand that there’s a lot of value in licensing commercial photography as it relates to your visual marketing strategy and future growth of your brand.
Whether you work on a marketing team or you're just someone interested in the business of photography, it’s important to have solid grasp of licensing. In order to provide you with a foundation of how licensing actually works, let's start with some practical examples of licensing in the real world.
Licensing agreements are something we all face on a daily basis. In fact, every time you update your smartphone, download an app or sign up for a service, at some point you’re agreeing to licensing terms. Maybe you read them, maybe you don't. But think about it this way, if you purchase an app on your smartphone, you don’t technically own that app; the developer does. You’ve simply purchased a license to use that app on your own personal device per the terms and conditions of the licensing agreement that you agreed to. That license doesn’t give you the right to modify the app's code or share it with other people to install on their devices. They’d have to purchase their own separate license which is tied to their own personal account.
Other practical examples of licensing in the real world are tv shows that are in syndication. The term “syndication” means "the sale or licensing of material for publication or broadcasting by a number of television stations, periodicals, etc." Think about your favorite tv shows. Have you ever noticed that while some tv shows are available to watch on multiple stations at any given time, some tv shows are exclusive to specific networks like Netflix or Showtime? There’s a reason for that, it’s called licensing.
In some instances, a tv show can be aired in syndication by one network and simultaneously licensed by another network with exclusivity for streaming rights. For example, you can catch classic episodes of The Big Bang Theory (originally aired on CBS) in syndication on the TBS network, but if you want to stream every episode of their 12 season library on demand, you’d need an HBO Max subscription. Of course, you could also buy each season on BluRay in a retail store as officially licensed merchandise.
“The Big Bang Theory will air on the WarnerMedia-owned basic cable network through 2028 through it's extended syndication deal” according to the Hollywood Reporter. Furthermore, “HBO Max has secured a deal for exclusive domestic streaming rights allowing fans of the show to watch all 12 seasons on demand through HBO Max.” This means that while TBS can air episodes in syndication, they can’t offer all 12 seasons for streaming on demand. Only HBO can do that.
Why would HBO want an exclusive domestic streaming rights to this incredibly popular show? Because it was one of the most wildly popular tv shows on broadcast television and would entice fans of the show to subscribe to HBO Max of course. More HBO Max subscribers means more money for HBO. But that exclusivity comes with a price tag estimated somewhere in the billions. Something I'm sure executives thought long and hard about, but ultimately decided it was a good business decision for the HBO brand.
The bottom line here is that the creators of this show as well as the actors, producers and other parties involved in creating it are still able to earn incomes from all the hard work they put into this iconic series. And it's only fair, because a network like HBO is likely going to make millions in profits from exclusively licensing this show to stream on their network.
It's an investment on the part of HBO in order to secure future income for the network. That exclusivity has a higher price point, because that means no other network in the United States can offer The Big Bang Theory for streaming on their network during that period of time.
So why is this important? It’s important because all of these same principles apply to the licensing of any intellectual property. Whether that's photography, music, literature, tv, software, brands etc. Think about merchandise being sold with with Elvis Presley’s face on it. Those images are under license. Think about a Jimmy Johns franchise. The Jimmy Johns brand is being licensed.
Before we get into the licensing aspects of photography, you first need to have a basic understanding of copyright. What is copyright? The official U.S. Copyright office website says "Copyright is a form of protection grounded in the U.S. Constitution and granted by law for original works of authorship fixed in a tangible medium of expression. Copyright covers both published and unpublished works.” To put it another way, copyright is a right that gives creators control of their original work; their intellectual property. The copyright owner has the exclusive right to make copies, to prepare derivative works, to sell or distribute copies, and to display the work publicly.
Photographic imagery is the intellectual property of the photographer who created it. Therefore the photographer own's the copyright to their work. This intellectual property is then licensed for specific uses to an end user in the form of a contract. Within the contents of a contract for professional commercial photography services, there's a specific section known as a usage license or licensing agreement. The usage license states how an image can be used, where an image can be used and for how long that image can be used.
It's important to understand that licensing photographic imagery is how professional photographers generate income and earn a living as artists. A professional photographer who licenses their photographic imagery is no different than a musician who licenses one of their songs for use in a Verizon Wireless commercial to help sell the latest and greatest smart phone or 5G wireless service. The client (Verizon Wireless - in this hypothetical scenario) is simply purchasing a license to use the artist's creation (song) for specific uses (tv commercial) and for a specific amount of time (let's say 6 months) for an ad campaign running on national television as well as web.
Licensing this artist's work doesn't mean that the Verizon Wireless can use the song any way that they see fit. It doesn't mean that Verizon now own's the song. It doesn't mean that Verizon can sub license that song or sell it to other entities. At no point does the ownership or copyright transfer to the client. Verizon Wireless is simply licensing the song in order to help sell their products and services. Once the duration of license is up, Verizon wouldn't be able to legally use the song without re-licensing it again. Licensing commercial photography to sell your products and services is no different.
If you work in marketing or advertising in any capacity you're probably already familiar with stock photography and perhaps the cost of licensing those types of images. And if you've ever purchased stock imagery, it's probably because it's quick and it's cheap. In fact, stock agencies make money by selling large quantities of low priced licenses to as many people as they can. In order to make an image more appealing to as many industries as possible, by nature the imagery has to be generic enough to plug into nearly any industry. But there's something really important that you need to understand here. When you "purchase" stock imagery, you're not purchasing copyright ownership to the image itself. You're actually purchasing a "license" to use that stock image. You don't own the copyright to that imagery, and there are certain things that you can and cannot do with the imagery that you just licensed. So if you’re under the impression that you now own the image, well, you’d be wrong.
There are generally two types of business models in the stock photography market; rights managed and royalty free. Rights managed stock images are generally less widely available and the cost of the license is based on the specifics of the intended use. This type of usage license only covers the usage you've specified, so any usage outside of the usage you've indicated would require additional licensing. Royalty free stock imagery on the other hand grants a non-exclusive, perpetual use of an image so long as it's used within the licensing terms set forth by the stock agency. And just because you purchased a royalty free stock image, doesn't mean that you can use it however you see fit. There are limitations on how you can and can't use royalty free stock images. For example, you can't resell the stock images, you can't claim copyright to the stock images, you can't use the stock images as part of a logo or trademark and you might find that there is a print limit of 250,000 pieces. Don't believe me? Check out Bigstock's licensing terms.
Not to get sidetracked here, but if you're truly building a brand, your products and services should to be distinguishable from other products and services in your industry. Newsflash, you're not going to find custom imagery of your products and services on a stock website. If you're interesting in learning more about why your brand shouldn't use stock photography, check out my article Stop Using Stock Photography To Market Your Brand. Here's Why.
A usage license for commercial photography services will address the "who, what, where and when" so to speak. Below you'll find a list of items that you can expect to see on a usage license. A usage license will address:
Photographic imagery has value. Whether a photographic image is intended for personal use, editorial use or commercial use, that usage has a value attached to it. (Learn more about the differences between retail, editorial and commercial photography here) As you'll see later in the article, the value of that usage can vary widely between personal use, editorial use and commercial use. That's why addressing how an image will be used, where it will be used and how long that image will be used is so critically important. Understanding the scope of usage helps in determining the value associated with that usage.
While personal usage in the retail segment of the industry is pretty straight forward, a usage license in the commercial world can get very complex. And rightly so because there's so much more to consider when it comes to licensing commercial imagery for businesses and brands.
Think of it this way, if your company has ever spent money on an advertisement, you know first hand that the amount you spend is proportionate to the number of potential views that advertisement may receive. That's why running a full page print ad in Food Network Magazine, would cost your company $86,628 for a six month run in 2021. You’d pay $86,628 knowing that an ad featuring your product and/or service would be strategically placed in a magazine with 13.4 million readers and over 45 million social media followers that just so happen to fit the demographic of your ideal target market. That level of exposure has a ton of value! That also means that the imagery you’re using in that advertisement also has a lot of value.
It's a simple concept. The more you want your ad to be seen, the more media you'll need to place that ad in. The more media you place that ad in, the more it's going to cost. It’s the reason brands spend millions of dollars on media during the super bowl. Commercial photography usage is treated the same way. The licensing fees for commercial imagery are proportionate to the amount of usage requested on behalf of the client, this insures that the artist and/or artist's representatives are compensated fairly for the usage of their work. The value of commercial imagery goes far beyond the amount of time spent creating it. In other words, there’s more to the story than a simple day rate for executing the work.
Because usage plays such an important role the business of commercial photography, I think it’s important to also to address the differences between usage licenses in both the retail and editorial segments of the professional photography industry as well. It’s also worth noting that usage license is generally a fee calculated separately from the creative fee or production costs of making the image itself.
A usage license for photography created in the retail segment of the professional photography industry is for personal use. This means that a photograph is used with intent and purposes of personal use only. This type of usage is unique to the retail segment of the business and is considered B2C, in other words, a business to consumer transaction.
These are generally images of your family, kids, pets and really anything that has a personal connection to you. These are the type of images that hang on the walls of your home or live on your personal social media accounts. The usage of these images are strictly limited to your own personal use. It’s important to remember that the photographer still retains copyright ownership of their work and has simply granted the client a license for their own personal use. I think it's worth mentioning that this type of license doesn’t necessarily give client's the right to make copies or derivative works from the photographs, unless specified somewhere in the contract.
Personal use is usually considered to be a perpetual license. This means that you can use a photograph as long as you care to use it, provided that it’s for your own personal use.
In the retail segment of the professional photography industry, there is no separate line item fee for usage. Personal usage is included in a session fee or studio fee. This is very straight forward and very simple.
An editorial usage license is bit more complex than a usage license in retail segment of the market. Editorial use means that a photograph is used with the intent and purposes of education and journalism. This type of usage is unique to the editorial segment of the professional photography industry and is considered B2B, in other words a business to business transaction. The subject matter in this type of image usage ranges from a wide variety of people, products, architecture, food, travel, you name it. Essentially photography in the editorial segment is used to document current and past events along with other stories of human interest that span a wide variety of topics.
Depending on the license and the rights granted, you’ll commonly see this type of photographic usage in the form of textbooks, magazine articles and other news sources. Generally speaking editorial usage for a magazine or news organization includes usage across all of their platforms including print, digital and sometimes even television.
Editorial licenses are typically set up for a very specific one time use. Usually this means that an image or series of images, would be published as a one time run for a particular story or article. It's worth mentioning that some magazine publications also have an embargo period, which means they have exclusivity to the image for that period of time. This could be as little as 30 days or as long as 90 days from the date of publication. This does not mean however, that the publication owns the copyright to the image. The photographer still retains copyright ownership of their work and has simply granted the client a license for editorial use with exclusivity for a certain period of time. This means that the photographer cannot license the image to anyone else during that period of exclusivity. After the embargo period has passed, the photographer is free to re-license the image as they see fit. If the magazine needs to use that image again at any point in the future, they would need to relicense the image.
The editorial industry at large generally set their own space rates for usage based on the amount of space that an image occupies. Pages are generally broken up into spaces; cover rate, spread rate, full page rate, half page, 3/4 page, quarter page and 8th of a page.
While a usage license for retail (personal use) and editorial (education and journalism) are pretty straight forward, commercial usage is a lot more intricate. Commercial use means that a photograph is used with the intent and purposes of selling a product, service or idea. This type of photographic image usage is unique to the commercial segment of the professional photography industry and is considered a B2B or business to business transaction. The subject matter in this type of image usage ranges from people, product, architecture, food, travel, you name it.
Depending on the license and the rights granted, you could see this type of photography usage in the form of magazine ads, merchandise, billboards, transit signage, digital ads, tv and web commercials, as well as company websites to name just a small handful of uses. Again, it’s important to remember that at no point is the copyright transferred to the client. The photographer still retains copyright ownership of their work and has simply granted the client a license for commercial use in order to aid in selling a client's product, service or idea.
Commercial photography licenses can range from a standard 1-2 year agreement up to a 5-7 year agreement. In the world of advertising, for markets where product cycles are refreshed every year a 1-2 years of usage is ideal. For example, if you're a smartphone manufacturer, chances are, you introduce a new smartphone every year. That means the images being created have a shelf life or 1 to 2 years. All of your major advertising would be done in the first year. But you may still sell the previous model, so you usage may be limited to web only during the 2nd year of licensing. The duration of a usage license is really dependent on the needs of the client.
The licensing structure in commercial photography has a wide variety of variables and cost can but it really boils down to a few major things; 1.) How the imagery will be used 2.) where it will appear and 3.) How long the imagery will be used. So for example, a company could license imagery for internal use only. This might include in-house training materials and presentations for 1 year. The cost of this type of usage might range from $1,500 to $3,000, while 1 year of print and web advertising with a national distribution might run anywhere between $8,000 to $20,000. As you can see, the usage fee’s vary widely based on the usage needed.
Thanks for sticking with me! I know I threw a lot at you here. But as you can clearly see, there is a lot to consider when it comes to licensing commercial imagery. Just to recap, photographic imagery is the intellectual property of the photographer who created it. Licensing that intellectual property is how a photography business generates income. At no point does the copyright ownership transfer to the client. The cost of a usage license will vary greatly depending on a number of factors including but not limited to how the images will be used, where the images will appear and the duration of time the images are being used. Other variables might include the market you're working in as well as the uniqueness of the imagery.
The bottom line is that when you hire a commercial photographer for a project, you're getting access to unique commercial imagery. Imagery that is tailored to meet your specific marketing and advertising needs. Licensing those images to help sell your products and services is an investment into your brand and it can prove to be a tremendous value over the course of a campaign.
