Usage rights govern the artist’s and client’s ability to use the finished work in creative collateral beyond what is specified in the initial scope of work. Some illustrators typically specify a few common types of usage rights, and others give clients a choice that is reflected in the total project cost. Here are some examples:
Rights managed: The illustrator gives the client permission to use the illustrations in a specific way. Typically this choice restricts the length of time, the medium, the size, the format, and the location of use. This usage option is typically less expensive because the client does not have exclusive use of the illustrations.
Royalty-free: The illustrator charges the client a single standard fee for repeated reuse of the illustration (usually by that client only). The artist typically retains the rights to the images. Exclusive use typically costs 20 percent to 50 percent more than rights-managed use.
Work for hire: The illustrator creates a work and, under the contract signed, gives the purchaser sole ownership and rights to that work.