Native/Source Design Files
Hey Everyone,
I have always been a little confused about whether it is right to charge a client who asks for a native/source (psd, ai, eps, fla etc.) design files. A part of me does believe it is right, however I fail to come up with sufficient reasoning to back up why I am charging them for it. They have paid for the work should they not get the final as well as any other files that were used in creating it?
And if you do charge them, how do you come up with a price something like that?
((I have seen this issue discussed in another topic but it still seemed vague to me. If there is another discussion about it that I missed please send me a link.))
Thanks in advance.
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The short answer:
YES! You should be charging more to release the files, simply because releasing the files changes the nature of your transaction. Releasing the files are an exchange of tangible goods, as opposed to a pure-service.
Basically, unless you specify that the files belong to you before you start the job it could be expected that you should hand them over if the client desires. This issue is usually handled in the rights-and-usage agreement clause of your contract.
Most agencies if asked, will tell you that they never release their files as policy, but that really depends on a number of things. The agency's policy, the client and the agreement they have with the agency, the content of the file and who they are releasing it to and for what purpose.
I've had agencies in the past send over what I need at the request of the client without issue, and in contrast, had some refuse to release even an editable logo (which I replied, "Fine... I'll just redraw the damned thing").
Personally, I have a catch-all phrase in my Policy and Procedure which simply states: "Rights and usage for each project will belong exclusively to e-zign Design Group and/or each contributor unless specified otherwise."
This is, and always has been posted to my web site and does a few things:
1. It puts the responsibility of requesting rights to the files on the client.
2. It gives me the rights to everything I do by default.
3. It keeps me from having to explain over and over what rights and usage are.
4. It keeps me from having to pay sales tax in Tennessee (since no tangible goods are trading hands, I'm still a pure-service business, which in TN, do not have to collect Sales Tax.)
Now, that said: I'm rather lenient towards releasing files, mostly because I want to be helpful and it doesn't cost me anything. It all depends on the situation and if the client is being an ass or not. I've never held files for ransom, but I also have another policy that allows me to charge for files more than a year old (I have a 20-year old archive).
Additionally, if a client wants to go elsewhere and use another designer, I'm not going to stand in their way.
Hope this helps.
Terry Thornhill
e-zign Design Group
Good points
Ok, I do agree with everything you have said and thats a good point about specifying the rights and usage. I also agree that it is really relative to the situation you are in with the client, contract, etc.
However, my one question is are you technically providing a pure-service in design? Say for example I do a print design and end up giving them a PDF which they can go to the printer or print it themselves. Or what about setting up a website for them, isn't that an exchange of tangible goods?
It depends
Mostly on your area's tax laws. I've gone round-and-round with Tennessee's Tax collectors about what is considered "exchange of tangible goods" and what isn't and at least in Tennessee, it all comes down to retaining the rights (which I do by default).
As for the web site, I don't do a site unless I host it, so they're basically leasing the server space from me and (by default) I retain rights to their design, layout and content. Again, at least in TN is still considered a service.
Terry Thornhill
e-zign Design Group
It depends
Mostly on your area's tax laws. I've gone round-and-round with Tennessee's Tax collectors about what is considered "exchange of tangible goods" and what isn't and at least in Tennessee, it all comes down to retaining the rights (which I do by default).
As for the web site, I don't do a site unless I host it, so they're basically leasing the server space from me and (by default) I retain rights to their design, layout and content. Again, at least in TN is still considered a service.
Terry Thornhill
e-zign Design Group
Hey Ivan
How does one delete a double-post?
Not sure how that happened...
Terry Thornhill
e-zign Design Group
Remove text
Maybe you double clicked...in any event, you could 'edit' the second post and remove the text, thereby minimizing the double-ness. :)
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Powerpoint is not a design application
Sales tax on services
Go to the aiga.org website here and download the 'sales tax' pdf for even more clarification. The real difference occurs between 'tangible' and 'intangible' transfer of goods and services. Tangible being more easily, and more commonly, taxed than intangible. At least in New York and California.
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Powerpoint is not a design application
Ownership
Keep ownership of your files -- they are your key to future work on those projects. Your contract should explicitly state that you own everything you create that's not the client's property to start with. Then it's cut and dried, end of story.
Don't give the client pdfs of your files if you can help it, that's almost the same as giving them your work. Make sure they direct you to the printer and charge them for your time. This service is much appreciated by most clients who don't know their 4/1 from a spot color if their life depended on it. :)
Go to 'search' and type in 'copyright' for lots of discussions on this topic. Don't feel bad about the business side of things; it's just business. Keeping the rights to your files, and clearly defining those rights, is part of the job.
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Powerpoint is not a design application
I Password protect my PDF's
Its not 100% effective, there are ways of getting around it, but it DOES work when the client starts behaving badly. . . once the money's in the bank I send them the password so that they can print. OR I password protect it only to the level of modifying the file, they can still open and print it, but they won't be able to monkey with it. . . added to that I outline the file ANYWAY and its a little harder to change anything that's flattened and outlined. :)
"Try not, Do! or do not, there is no try."
-Yoda
Tax implications
I still advise against providing them a pdf or file of any kind unless you're transferring the artwork. It's more a question of taxes and ownership than convenience and password protection because all of a sudden your intangible service work becomes tangible, and therefore taxable. Hopefully you're charging them for these pdf files, eh? :)
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Powerpoint is not a design application
GO TO THIS SITE:
http://www.gag.org/pegs/index.php
Buy that book. It explains everything!