What should I do?

Hello everyone-

I am in a situation where I am not sure what to do and if anyone has an opinion, I would love to hear it.

For the past several years, my small design firm has been working with a company to create the brand, logo, identity, website design, all print collateral and product packaging. Basically if it had to do with the look, I created it. This company has recently been sold and I was told after the fact. The new owners have been given the logo, hard copies of all the printed material (and whatever lo res PDFs they had) and the website.

The new owners have been contacting me asking for all the files, I have told them I would be happy to work with them and they seemed interested, but keep asking me to just send them files (which I haven't sent any) What rights do I have with the work? Transferring of all the work process files was never discussed with or okayed by me NOT part of the sale of the company.

I have offered to make changes to the various documents so they can reprint, etc, but they don't want seem to want to pay for any of these services. Do I charge them a file release fee for each file? Do I offer them a buyout for all the files? Do I charge hourly to just collect and transfer the files? What are the appropriate fees for each of these scenarios?

Thanks so much in advance for your help- I appreciate any and all ideas and input!

Kate



Depends on you, really

You could say that you had no written contract to provide "working files" to the client upon completion. But at the same time, you have nothing in writing stating that the working files are not included in the original price.

You are more or less obliged to provide them with the files necessary to complete the "finishing" of a job as is (high res files, etc.) This means high-res PDFs, etc. Once those "jobs" are complete (printed, etc.) - your obligation is more or less complete.

In the case of a Web site, I don't see where you owe them anything if the site is up and running already - technically, they have all the files.

In this case, it sounds as if you won't be getting any business from them in the future. So you could be nice and burn a copy of their logos in vector format, a copy of the entire Web site (just the final files), and if you're feeling generous, you could provide them with the files for business cards, letterhead & envelopes. Give them that for free - it's the least you can do for years of income.

Then explain that because no "deal" was in place for you to archive, maintain or provide for future projects, you must charge a "kill fee." Make it reasonable! I can't stress that enough. If you've charged them $20,000 over the last few years for various jobs, don't hit them with an $8,000 kill fee.

If they accept, burn ALL their files to CDs. Send a letter (certified mail, or something that requires them to accept the package in writing) with the CD explaining that upon receipt they are required to inform you within five business days that they do indeed have all the files they expected and they are in working order. If they don't, they must inform you of EXACTLY what they don't have, and when you supposedly created the missing files. If they DO accept the order, inform them in the letter that you will be destroying all copies you have (you don't really have to if you don't want to), thereby releasing you from any future obligation. Also inform them that if they do not contact you within five business days of receiving the package you will assume the transaction is complete and your copies will be destroyed. Obviously, you don't send anything until you have the "kill fee" in the bank.

That being said, you are not legally allowed to give them any fonts. Font licenses provide for your to share the fonts for the purpose of OUTPUTTING the files only. Asking for working files means the customer wishes to continue to "work" with the files - which would require them to buy their own copy of the fonts.





This is why you should

This is why you should always reserve your rights at the beginning of a project. I know it's too late now, but you should always send the client a short list of your right and theirs. Personally, unless they pay me extra, a client only gets the final flattened artwork from me. That's what they pay for.

The work files are yours. The stuff they have, they can do with whatever they want, but your files are yours. They can either buy them from you or continue your employment. Look up "Work for Hire" and you can figure out your rights.

Unfortunately, there's only a slim chance that your relationship with this company can continue without either you getting screwed or them getting mad. Good Luck.





Do not rely on lay advice

You absolutely need to seek a competent intellectual property attorney's advice. You need to determine based on your contracts whether your works were a work for hire or not; whether you would retain a present possessory interest even if they were, and a cost benefit analysis of whether it is something you should fight.

Do not rely on the advice of non-lawyers for this. It is ABSOLUTELY worth shelling out a couple hundred bucks for an attorney to give you their advice. This has the benefit of giving you an attorney already familiar with your situation if things go sour.





I agree with the fee

I agree with the fee structure. Explain that your agreement was with the previous owners and that you are not obligated to provide anything. Offer to continue working with them and get it in writing.
If that's not acceptable to them, charge them a fee for all your files but only provide them with flattened files as that i, realistically, what you were hired to do in the first place.





@law_student has the right answer

Law Student has the best point. The few hundred dollars you spend will be more than worth it, considering the price of the files in the balance is in the thousands of dollars. You're probably not going to get future work from these guys, so I would do what I can to be sure that the pricing of the source files reflect that. Good luck!





Get a copyright / art / music attorney

Personally, I would charge a fee. But then, that sort of thing (i.e., releasing native, original files) is written out in our contract.

But...

law_student is absolutely right. Don't *just* get advice from others in the business - like design projects, every situation is unique. Getting an attorney is the best and only way to solve the issue. What you'll pay hurt at first but it may just help you save face if nothing else.

Best of luck!





Getting legal advice is great, but...

Also look at the value, time and possible dent on your reputation that any form of legal action **could** end up leaving you with. Ask yourself if it's worth moving forward with (after speaking to a lawyer).

Most times, it simply isn't worth the hassle and time. Personally, I would rather spend the time and resources going after new clients.





Keep it amicable

Try to come up with a solution that keeps you both happy. Give them the files, but charge them for however long it takes you to sort these out, and let them know in advance how much it will be. Any reasonable businessman will understand that your time costs money.

Paying for legal advice is going to cost you, and what is the likely outcome? You would either end up holding onto the files with no payment or handing them over for a fee. This fee may be more than you could negotiate without legal advice, but how much will you have to pay out?

As James states above, legal action may dent your reputation with this client and any other potential clients they may know, and will cause you a tremendous amount of stress.

I've been working with design clients for 13 years and the most helpful cliche I can offer you is 'don't burn your bridges'. There may come a day when this client offers you work again. It has happened to me many times.





Give them the files

I agree with Ralfy. Let them have the files, but charge them for the time it takes to compile and organize them. If you really don't think you're going to get future work from the new owners, than the files have no value to you. Letting them have the files may also get you future work, as a sign of good faith.

I personally write into my contacts that at the end of the job (after I've received final payment), a disc will be delivered with all source files. I do this for a variety of reasons. I don't want the responsibility of maintaining a library of past work for my clients. If my house burns down, or I get hit by a bus, I don't want that liability. Also, for situations like this, or if a relationship just goes bad, I want to be able to drop a client with no strings attached.

The way I look at it is, if a client likes working with you, they will come back to you regardless of whether or not they have the source files. If they don't like working with you, why would you want to work with them?





I feel your pain

Kate,

From your post, the new owners clearly do not wish to work with you. Their cleaning lady's second cousin is a high school senior who has taken the Intro to Graphic Design course. So you can mentally write off the new owners.

You have established a way of working with the old owners, and providing original artwork was not part of the deal. Otherwise, they would already have the files. It is not reasonable for the new owners to expect you to provide the files (i.e., change the deal).

Unless your services were part of the purchase agreement, you are out of the loop. The new owners will "seem interested" until they get what they want.

Having said that (from years of experience), what you decide is up to you. Nobody's going to court over this. Just keep being nice and follow your instincts. A compromise might be to offer to assemble all files and furnish them on a disc, and formally release all your ownership rights. In return you will be paid a fee for your time and talent.

Here's the important part: From now on, have all clients sign a Creative Services Agreement. Go over it with them now to avoid hard feelings later on. The agreement should spell out everything pertinent to the kind of work you do.

Below is a link to a generic Creative Services Agreement. No, it was not drafted by an attorney. But it is a reasonable agreement and having it in place is 100 times better than a handshake.

Best of luck!

http://www.davidamack.com/forms/Contract_generic.pdf





more flies with honey...

In general, I agree that paying an attorney almost guarantees an intensification of hostilities, and would offset the majority of what might otherwise be a reasonable settlement. I agree with the notion that you were paid in full to do the work. It would be reasonable in any situation to charge for collecting and archiving the files. You may be surprised, you collected a good bit of understanding of your client's industry and identity. They might realize some value in that. the files have little real worth to you if they are no longer a client. archive a copy for yourself. Put yourself in their shoes, what would you consider fair if the situation was reversed. I've been around for a while, going through the legal process is emotionally exhausting and worth avoiding if possible.
be nice.





I agree with

I agree with RhymingDesigner. Your relationship was with the old owners, and the new folks are only trying to get your stuff. Having been through this very experience, here's how I handled it.

I explained to the new owners that under your working agreement with the previous owners, they did not purchase the rights to your creative files. I explained that this is like purchasing the negatives from a photographer. When I use that analogy, people DO seem to "get it."

I explained that if they would like to purchase the working file, the fee for that is 50% of the original invoice for that project. (Your fee may vary; I know some designers charge 75% or even 100% of the invoice).

I would share with them that you only maintain archives of past projects for a "reasonable period of time," therefore, should they desire to discontinue the working relationship with your studio, those files will be purged effective on such-and-such a date.

Best of luck to you; don't freak out over it.





Nice post, and thanks all

Nice post, and thanks all for the great comments covering the gamut. I hope Kate posts a followup and lets us know what she chose to do, and how it came out.





getting advice from an attorney

getting advice from an attorney is not the same as having an attorney contact the company. getting advice from an attorney does not turn things contentious. it just puts you in a position of understanding what your legal rights are. it may help you with creating a better contract to work with your clients in the future.

as others have mentioned, it's always best to spell out who retains rights to the the designs in your contract. you can also take a look at http://www.aiga.org/resources/content/3/5/9/7/documents/standard_form_of... for more information about setting up contracts.





DO NOT turn over the files.

The work belongs to your employer, not to their client, not to you (unless you own the small design firm).

You need to defer this decision to your supervisors, who will (hopefully) not do anything without consulting an IP attorney. Try to track down any contract between your firm and the client company ASAP.

Best of luck!





What about volunteer design services, non-paid

My wife and I did some volunteer graphic work for a sports league.
My wife was on the league, but now she is not. The league is demanding the files to be turned over or their lawyer will be contacted. It could be just a threat. We planned on turning the files over, but it was going to take time. My wife is not computer savvy and we’re experiencing computer issues. My wife signed a league contract, and I am not aware of what is mentioned as far as design services go. I am not part of the league, but volunteered my time to construct their website. I never signed any contract. We don’t have money to afford a lawyer. We want to continue to support the league by still attending their events, but they’re getting nasty. Any advice will be helpful? Thanks, Keith





Squat

It all depends on the contract. If the contract specifically addresses "working files," then you're going to have to turn them over - even if it means re-creating them.

That being said, since this was volunteer work, I can't understand why a contract was necessary to begin with. Nor do I know if it could possibly hold up in court since the league isn't really "out" any money. You may not owe them squat.





Doesn't pay to volunteer, does it?

First off--wow. I'm a volunteer as well in various sectors and have never heard of the like of what you're going through. If it was me, I would ask for a copy of the contract your wife signed, to verify where you stand on this, and I'd also explain to them that the files are not retrievable, but if they wish to pay for a tech person to come and fix your computer you will be more than happy to turn over the *FREE* files.

It's really too bad that something you obviously enjoy has come down to the petty demands of a few. I'd also start talking with others involved with the league to see if they have had, or know of anyone else who has had, a similar experience with these league officials. Maybe more than a turnover of files is necessary.

ttfn
3 Dog





Thanks!

Thank you for your replies and thank you Kate for posting this article. This has been helpful. Keith





You need to give the files to them

I ran a small commercial printshop for 23 years. I always gave my files to any customer asking for them. They have already paid for them. Anything that someone has paid for is theirs. You are good at what you do. Let your work sell yourself. They'll come back to you. If they don't, keep on truckin'.



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