Selling photo for use on CD cover - license agreement question

[civicseth]

I was going to rough a draft of the license agreement tonight on a photo a local band wants to use as their album cover. I have never done this before, so I come here to look for some guidance. Basically, what we have agreed on is for them to use the photo as their album photo, and can use it on promotional items such as flyers, etc. but not on profitable merchandise such as t-shirts, hats, etc. What are the basic terms I should include in the contract to ensure I still own the photo, and am limiting it's use to the terms described above? I want to make it as clear as possible, but without leaving me open to abuse.

Any help/advice would be greatly appreciated! I plan to meet with the band tomorrow at their practice for them to decide on which photos they want to use for sure, as well as if they would like to use any additional photos for other album art.

[blackshadow]

A basic licence agreement that specifies:
1 - you own the copyright
2 - the client has a licence to use the image for x, y and z only
3 - the client does not have a licence to use the image for any other purpose

Keep it simple.

[Road2Show]

Invest $139 dollars in Fotoquote. It will can be the best money you'll spend in building your business. It will give you -guidelines- for many, many different situations. I paid for this the first time I used it for a quote. I was under estimating (against industry averages) by several hundred dollars.

http://www.fotoquote.com/fq-overview.html

BTW, "average" prices for something like this could run between $600 us and $3500 depending on the run rate, etc.

[civicseth]

Well, I far undershot that number. I don't have a business going, nor do I plan on it. It's a hobby, and some people are willing to pay for certain things, so I just wanted to at least do it right, even if I did give them a heck of a deal for the photo.

I appreciate the help so far!

[civicseth]

How does this sound?


1. LICENSE Agreement
A. Definitions:
"User" shall mean the individual, legal entity or agent entering into this Agreement or any employee or contractor of such individual, legal entity or agent that edits, manipulates or modifies the Images or are otherwise directly involved in the creative process including, but not limited to, photo editors, photo researchers, photographers, art directors or designers. All Users shall only use the Images in accordance with the terms of this Agreement.

"You" shall mean a single: (i) individual, (ii) legal entity (corporation, partnership, LLC, sole proprietorship, etc.), or (iii) agent acting on behalf of a single individual or entity.
B. Copyright:
The Image(s) are copyrighted and protected under the various laws of the United States, International treaties and other applicable laws. The Image(s) shall remain the sole and exclusive property of Seth Byers. Use of the Images is licensed, not sold, pursuant to the terms of this Agreement. Use of the Images without agreeing to this Agreement, or a breach of these Agreement terms, is copyright infringement.
C) Permitted Uses. You may, subject to Section 1(D) below:
(I) Back up, and store, single Image(s) as necessary on a single server for archival, tracking or asset management purposes only.
(II) Use the Image(s) in any electronic or print media, including advertising and editorial use, provided such use is not intended to allow the re-distribution or re-use of the Image(s).
(III) Use the Image(s) on product packaging, limited to the CD cover and its included documents, including the printed CD face, as well as the rear CD cover, and is not permitted on any other items for profitable resale, including book covers, calendars, consumer merchandise (T-shirts, posters, art, etc.).
(IV) Modify or alter the Image(s) as necessary for your use, provided that if such modification or alteration constitutes a derivative work you do not acquire any copyright ownership or equivalent rights in or to any of the Image(s) or any other property of Seth Byers and you shall only use such derivative work in accordance with this Agreement. If requested by Seth Byers, you agree to execute a written assignment of any such rights, including copyrights, at no cost to Seth Byers .
(V) Use the Image(s) as decor in an office, lobby, public area, restaurant, or retail store.
(VI) Use the Image(s) as design elements in video, film, or television broadcasts.
(VII) Use the Image(s) in connection with your business or entity, e.g. corporate identity documents and letterhead, except as prohibited below.
(VIII) Use the Image(s) for any other uses approved in writing by Seth Byers.
D) Prohibited Uses. You may NOT:
(I) Use the Image(s) for any other uses unless pre-approved in writing by Seth Byers.
By signing below, you agree to the terms included in this License Agreement.

[civicseth]

Any advice about that agreement?

[Philip Colmer]

Section C (III) needs a bit of work, I think. It isn't entirely clear what is permitted and what isn't. It reads as if you can use images on CD packaging, but not any other items? It also seems a bit confusing to have a prohibited use in the permitted use section.

Apart from that, I think it reads well.