This is a guest post from Kristen Dettoni of Design Pool Patterns.
Licensing designs from independent designers offers a huge array of options for an interior or product designer. But before picking the perfect pattern, it’s important to know the process of licensing a design so that all parties are legally protected and everyone gets paid for their work and expertise.
Types of Design Licenses
There are two types of licenses:
1. Non-exclusive
2. Exclusive, sometimes known as proprietary
Every industry that deals with designs, from paper goods to textiles, has slightly different language for their licenses.
Non-exclusive License
A non-exclusive license is one that it is not exclusive to you or anyone else. Everyone has the right to use that design on any product and in any market.
Exclusive License
An exclusive license is one in which the design is unique to you. You have proprietary rights to use the design on any product and in any market, but you do not own the copyrights.
With an exclusive license, there are different levels of exclusivity. The highest level is exclusive in perpetuity. The continuity allows you to be the only one to ever use that design for an unlimited amount of time.
The next level is exclusive to your specific market or product. This type of exclusivity enables the buyer to be the only person or company to use the pattern in a particular market or type of product.
Another option is exclusivity with a specific time frame. The timing could be as specific as a set number of years or as vague as the product’s life cycle. After the decided time frame, that same design can now be used by your competitor, though that is usually unlikely because at that point trends and styles have changed. Whatever is the agreed upon time frame, it is recommended that you also include a stipulation in the contract that addresses the end-of-use terms. For example: Upon the end date, design “A” may not be used in the same product or market category.
Royalty vs. Royalty-Free Designs
Once you determine which license suits your needs, you have to determine whether there is a royalty or if the design is royalty-free.
What is a Royalty?
A royalty is a fee that you pay every time you use that non-exclusive or exclusive design. The fee is usually based on the selling price per unit or per yard. If you are working with a royalty, it is imperative to have a clear contract in place.
Paying a royalty may sound a little alarming, but the benefit to paying a royalty instead of a flat rate is that it allows you to use a design without purchasing it. The goal is that the designer and company make money together. The partnership is ideal for companies that may need a lot of designs, but are unsure as to which will sell.
Typically, royalties are paid out monthly or quarterly. The only additional fee might be if there is any design work involved. If so, that design fee should be discussed before the start of any job.
Most large online image libraries are royalty-free: Shutterstock, iStock, or Getty Images. You’ll pay a flat fee to use a design, but you’ll need to make sure that you are paying for the correct license. Some companies offer various licenses depending on the image application and print run sizes. It is crucial to read the licensing information to make sure you are abiding by their rules.
Some online sites offer both non-exclusive and exclusive designs: Design Pool and Patternbank. These sites are also industry-specific sites. Design Pool caters to commercial and residential interiors, and Patternbank serves the apparel and fashion industries. As the print-on-demand industry grows, we expect to see more image libraries spring up to meet that demand.
Design Licensing from Individual Designers
Many talented artists and designers license or sell their artwork, in which case you can own the copyrights. There are a few trade shows that allow you to connect with these designers, such as Print Source or Surtex. There are also websites such as Behance that offer a vast diversity of designers.
Contracts
If you are going for an exclusive license or working directly with a designer, it is best practice to have a contract. If the designer does not provide one, you should have one written for both parties. Be very clear about the terms including who owns the design, the time frame usage and any royalties to be paid.
Free Designs
There are a few websites that exist where the designs are free for anyone to use. In this case, the designs are non-exclusive and royalty-free, such as on Pixabay and Pexels. Some of these sites ask for donations or designer credit, so read the terms of use. Though the sites have some beautiful images, the age-old saying still applies: You get what you pay for.
Design is Art
Don’t forget: Whether a design is created with a computer or with a paintbrush, it’s all art! The majority of designers have trained in the arts and either have a Bachelor’s of Fine Art or a Master’s of Fine Art degree.
Play by the rules whether the design was free, non-exclusive, exclusive, royalty-free or with a royalty. It is the designers’ livelihood, and it should make you feel good to know that you are supporting the arts!
