Factors that affect licensing fees

The licence fee for reproducing an artwork will factor in:

• where the work will be positioned – for example, front cover, editorial, lead campaign image
• the volume of the product: as an example, compare an academic publication with a small print run of 500, to a coffee table publication with over 10,000 copies
• who’s using the work: as an example, a global corporation has more resources than a small independent gallery
• how long the artwork needs to be licensed for
  

Pricing models

A flat fee (a payment you make once) may be charged for the use of the work, or a royalty rate may be more suitable.

A flat fee may be most suitable for book publishing, depending on several factors:

• Whether the image is used on the front cover or inside the publication.
• The print run of the publication.
• If it’s English language only or worldwide.

For merchandise, a royalty rate may be most suitable. This is a percentage of the retail or wholesale selling price. The more items sold, the more the artist receives in royalty payments.