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Anti-Royalty Free
Why Royalty Free is a 'Bad Thing'

Why Royalty Free is a Bad Thing

First of all, a definition and a little background; Royalty Free (RF) is a business model for the licensing and sale of material such as graphic art, photographic imagery and music which may be used for profit without paying royalties as the name suggests. This article will deal with photographic imagery, but the principles apply across the board. A one-off payment is made in order that the image in question can be used. The price of the image is usually based on file size and once purchased, the image can be used as many times you like in as many ways as you like with the one caveat that you may not resell the image itself. Photodisc were one of the first suppliers of imagery under the RF model, offering CD 'collections' of backgrounds and what we might term 'clip art'.

Royalty Free - You Get What You Pay For

Sounds like a good deal, surely? Well, as in anything, you get what you pay for. The biggest problem with those early Photodisc collections was that every designer had the same set which meant the same images appeared all over the place. Now, though, the sheer volume of RF imagery available has reduced that risk, but it can and does happen and in some particularly noteworthy cases, with extremely embarrassing results;

In the summer of 2004, Dell and Gateway featured the same model and location (although not the identical shot, but from the same shoot) in their Back-To-School campaigns. Two companies in competition with each other using the 'same' image does not impress or convey an image of quality.

The same thing happened with Wanadoo and Cegetel, two French ISPs, who both used the same image as part of their campaigns for new business.

in both of these examples, the imagery has been used by competitors, but the situation could equally be products or services at the opposite ends of the spectrum. In the context of the internet as we know it today, it is far easier to be aware of these faux pas, as we all have greater access to information.

RF imagery is supplied for its broad appeal, and because a controlled vocabulary list is used to keyword the images, they turn up on the same searches time after time. RF is high volume and fast turnaround and that leads in turn, to an undermining of the value and worth of creative original photography. Because of the high volume nature of RF, often critical paperwork such as property and model-release is not sought and can leave the client with a far bigger bill afterwards.

The Rights Managed (RM) Model

Obviously, the best solution every time would be to commission original photography, but the realities of budgetary constraints and timescale may rule this out as an option. However, Rights Managed (RM) imagery offers a middle ground whereby the imagery is licensed on the basis of 'use' rather than 'unit'.

Licensing this way offers a much better deal for both buyer and photographer and guarantees a level of integrity for the client which is missing in RF. The usage of the imagery can be defined exactly, and it could be that the cost is lower than that of RF.

In conclusion, RF offers the client no protection or originality and is sold much like any other commodity - that is, on the basis of 'unit'.

RM on the other hand, protects both the client's and the photographer's interests and calculates the fee on the basis of 'use'. Furthermore - and in complete contrast to RF - the fees for RM licencing are often negotiable. It can be the case that an RM licence fee is the SAME as an RF fee, AND you - the client - get something that is specific for your use with greater exclusivity.

Nick Dunmur June 2007

 
Image Overload
I was browsing my favourite newsgroup recently and noticed somebody from the UK had sent some SPAM to advertise their new on-line image library:

http://www.clintonmoffat.co.uk/index.php

The fact that the photography at the site was no better than the snaps that my 9-year-old daughter captures when we visit the zoo was of little surprise. But the e-commerce technology was something else picqued my interest.

This site, along with hundreds of other similar sites, uses a product called PhotoStore. Retailing at $295.00 and claiming to get you selling photos on line in "just minutes", you can see why Image Overload is an understatement when used to describe the massive number of RF images available on the web.

The testimonials page makes for depressing viewing as you click from one site to another, incredulous that people are prepared to publish such piss-poor images - even if they are only selling them for a £1 each.

Not that everybody is undervaluing their own photography. Incredulity works both ways - can you really find customers who would be crazy enough to pay $150 for something like this? In the hands of a pro the Fuji Finepix is obviously a license to print money.

If my eyes weren't burning I'd suggest a competition to find the most laughable examples of attempts to get rich from your own photo e-commerce site.
 
Stock Licensing Models

 

Increasing pressure on individual photographers to diversify their business models have many considering stock as a way to achieve this goal. While most engage in Rights Managed licensing, some are considering the Royalty Free model. Confusion about the differences between these two licensing models has left many photographers concerned how their decisions could impact their bottom line as well as that of the overall photography industry.

The StockArtistsAlliance, a global trade organization has created this white paper to assist photographers in making a better, more informed business decisions on how to best market their images so that their businesses will continue to proposer in the years ahead. SAA advocates the Rights Managed licensing model vs the Royalty Free model as we believe it to be the most equitable for all parties involved.

 

IMPORTANT: This is a text version of the Stock Artists Alliance White Paper. It has been reproduced here so that it can be read in non-PDF format. The original document can be found here:

http://www.stockartistsalliance.org/PDF_Docs/SAA_StockLicensingModels.pdf


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