Disclaimer: this is not legal advice, if you have a specific situation with legal implications, you should consult a qualified intellectual law attorney.
As part of copyright law, licensing is the system through which artists grant specific rights to clients or organizations to reproduce their work. In photography, as in other fields, it is a complex and situational matter, typically covered by contracts or other legally binding written agreements, often preceded by detailed negotiations. Licensing allows photographers to retain ownership of their work while clearly defining how, where, and for how long clients may use the images.
An important distinction
Licenses are granted for a fee, not sold, as they are agreements, not goods, because selling can imply transferring ownership. Prints of an image can be sold, but this does not include the right to reproduce the work. In some cases, copyright can be transferred, but outside of work-for-hire agreements, this should be expensive, as it permanently relinquishes ownership and future earning potential for the photographer.
You can read more about copyright in photography and contracts in photography in our separate articles.
Table of contents
License types
The type of license needed for a specific project is determined by an important first factor: exclusivity.
Non-exclusive licenses allow the photographer to sell the usage rights of the same image to multiple clients. This type of license is more affordable, as it allows the photographer to expand their revenue stream. For example, a photographer could offer publication rights to the original client while also reaching out to the client’s collaborators who may be interested in similar images.
Editorial licenses are typically non-exclusive licenses and include additional restrictions, such as limitations on modification and context of use. Editorial images can only be used for journalistic, educational, or informative purposes and cannot be used in commercial or promotional projects.
Exclusive licenses prohibit the photographer from earning additional revenue from the same image, as they grant the original client sole rights to use the photo. This type of license is common for large advertising campaigns or when a company wants to ensure that its competitors cannot use the same image. A client who receives an exclusive image license may also have the right to transfer publication rights further without the consent or involvement of the photographer. These types of licenses should be priced higher than their non-exclusive counterparts.
Exclusive licenses should not be mistaken for copyright transfers, as the photographer retains their copyright and intellectual property rights. The photographer should also be credited as the copyright holder whenever the image is used, in accordance with the terms of the license.
Retroactive licenses are granted after an image has already been used without prior permission and cover both past and potential future uses. These types of licenses should always be more expensive than standard licenses, as they compensate for unauthorized use.
When presenting an offer for a retroactive license, it is very important to include a clause stating that the offer is a non-judicial alternative. It clarifies that usage rights are being offered as an alternative to legal action, in case resolution is preferred over conflict.
Creative Commons is a global nonprofit organization, that offers standardized license frameworks for sharing creative work on the Internet. You can read more about them in our article about copyright, but in summary they offer license templates ranging from full public use to more restrictive, attribution-required terms.
Personal licenses grant individuals the right to use photographs for non-commercial, personal purposes only. This type of license is common for portrait photography, family photos, or wedding photography, where images are intended for personal display only. These types of licenses are usually perpetual and non-transferable, meaning the rights stay with the depicted individual and cannot be sold or given to others.
License specifications
Terms and conditions that outline how an image can be used under a specific license are included in the license specifications. These terms must be defined in a concise, easy-to-understand language to avoid misunderstandings or inadvertent misuse.
The duration of a license should specify the time frame a license is valid for, including the start and end dates. In some cases, a client may want exclusive usage rights for a limited period, after which the license becomes non-exclusive. In this case, two separate agreements must be made. Fixed-term licenses with renewal options should be offered at a more affordable price than perpetual licenses.
Geographic regions where usage is permitted should be clearly defined, including whether online usage has geographic restrictions, and whether different terms apply for different cities, countries, or continents.
The medium and purpose for which an image is used should also be specified. This includes whether the image will be used in print (such as magazines, brochures or posters) or online (on websites, social media platforms or digital ads). It should also cover whether the usage is for internal or external purposes, including marketing, presentations or catalogs. Additionally, the specific types of publications, promotional materials or other mediums should be outlined to ensure that all intended uses are covered and agreed upon.
The technical specifications of the licensed image must be clearly defined, including file format (e.g., JPEG, TIFF), resolution (e.g., 300DPI for print, 72DPI for web use), size (e.g., 1200px for web use, 120x70cm for print) and color space (e.g., sRGB, CMYK).
Any restrictions on cropping, resizing or other modifications should also be specified to ensure the image is used as intended. For example, the image may not be altered beyond proportional resizing, may not be cropped in a way that removes key visual elements or trademarks or undergo substantial edits without written permission from the photographer.
In most cases, the photographer retains the right to use the images for their own promotional purposes, such as on their website or social media profiles and if the client requires restrictions on such usage, these must be agreed upon before the license is finalized. As a best practice, the client should be included in the attribution for specific projects, ensuring proper recognition.
When offering storage and archival services as an additional option separate from standard photography and licensing agreements, it is important to avoid any charges that might be perceived as hidden fees, as this can erode client trust. Providing storage and archival options also adds an extra layer of security in case the client loses their images due to equipment failure. These services should be discussed during initial conversations, not after agreements are signed, so clients can make informed decisions about their image storage needs without feeling pressured or surprised by additional costs.
All usage terms and conditions are factors in determining the price point of an image license. For example, an image used in a small business brochure with a limited print run will be licensed at a different price than the same image used in a regional advertising campaign across multiple platforms, as the broader commercial impact and increased visibility affect its marketing value.
Questions about licensing
An important first question that arises is: why should a client who commissioned an image or a series of images also be expected to pay additional licensing costs?
Licensing is an industry standard practice, as photographers separate creative fees (researching, shooting and editing) from usage fees (licensing). When a client commissions a photography project, they are initially paying for the photographer’s time, expertise, equipment and the work involved in capturing and editing the images. While the main service agreement in a contract typically contains stipulations regarding the quality of work and legal assurances about non-infringement, licensing is a separate cost, that establishes the specific terms for commercial usage and distribution rights of the images.
A simple question with a complicated answer is: how exactly should the pricing of a license be determined?
Determining the cost of a license is very dependent on the specific terms and conditions discussed between the photographer and client. Some photography agencies offer online calculators to help provide pricing guidelines. However, these tools often include costs related to the agency’s infrastructure and legal expenses, which may not accurately reflect the appropriate price for an independent photographer or a creative team.
A hard-to-replicate image or an image in a unique context typically requires a much higher licensing fee than, for example, a generic stock photo. The reason for this is that the cost to reproduce such an image must be factored into the license price. If a client wanted an image similar to the one they are licensing, they would need to consider the cost of hiring a photographer or a team to capture a comparable shot. The more effort, resources and expertise required to recreate an image, the higher the licensing fee will be, as the client is essentially paying for the production value and effort that went into creating that original image.
An image for an editorial article will be priced differently from one used in a commercial campaign. The same applies to images in printed mediums, such as books and magazines, which are priced differently than those used digitally. This variation is influenced by factors such as distribution scope and duration of use. The total number of images required can also impact pricing. Unfortunately, there is no standard formula for calculating image licensing fees, as numerous factors come into play.
In terms of remuneration, there is the option of a fixed-price model, where the photographer receives a flat rate per image, and a percentage compensation model, where the photographer receives a percentage based on the client’s net sales revenue from the product. These methods can also be combined, either by lowering the price point of the fixed-price model and adding the percentage compensation model to it, or payment of the flat fee as a minimum guarantee in case no revenue is generated.
Another relevant question is: how does a photographer create a license?
Licenses are created in multiple ways. They may be incorporated into an existing photography contract by listing the image file names along with the specific terms and conditions for usage. IPTC metadata can be embedded with licensing details within the image file, a feature supported by most image editing software. Another method is attaching an XMP sidecar file to the image, which contains metadata that can include licensing information.
Verbal agreements regarding licensing may be accepted in some jurisdictions, but it is still recommended to have everything in writing to avoid confusion or legal disputes based on hearsay.