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Usage Rights

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mia harveyUsage Rights
by on Feb 26, 2008 at 12:24:59 pm

Hi all
We are a small vfx company in the middle east and I have a bit of a newbie question about usage rights.

We created a full cg tvc that was meant to be shown in the UAE only. This didn't happen and instead it was used in other countries as far flung as India, South Africa, UK, etc.

Because we weren't sure how the usage rights worked, we never said anything to the agency - we were just happy that it was getting a wide distribution.

It turns out that it was used in 11 countries and they have just send us a message now asking us to quote on usage rights for a further 3 countries in North Africa.

I am not sure what to do - what should we have done in the first place and is it too late to start quoting now? Is there a standard pricing structure for usage rights?

Any info or opinions would be greatly appreciated!
Thanks v much.

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walter biscardiRe: Usage Rights
by on Feb 26, 2008 at 1:53:04 pm

Easy answer would be to multiply your original rates times the number of usages.

If they balk at this, your reply should be something like "If you disclosed the full usage of the material at the time of the original contract, we could have worked out a deal for the costs. But as you've taken the material and shown it beyond the scope of the original contract, we're charging you fair market rate for each showing."

Walter Biscardi, Jr.
Biscardi Creative Media
HD and SD Production for Broadcast and Independent Productions.

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mia harveyRe: Usage Rights
by on Mar 2, 2008 at 2:22:59 pm

For our situation, I think that response may be a little hard core! They are a fantastic client and this is the only time in 3 years that I have had something to complain about.

I guess what I am really asking is what should I be doing at the quoting stage - if the ad is going to be shown internationally, how do you quote usage rights? Is there an industry standard, or do you just come to an agreement with your client on a per case basis?

Ignorance is a poor defence, so I am just trying to make sure I don't get into this situation again.


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