What is a Base Usage Rate?
The Base Usage Rate (BUR) is a fixed-figure sum set by the photographer or their representative and used to calculate the fees for any additional use of the commissioned work, over and above the original rights granted with payment of the original invoice total. A single BUR may be set for a whole commission or individually for separate images.
Licensing
The initial Licence
The originally negotiated fee would normally include the following (as examples):
1 Year RSA or any single country – any two media (3rd media may be included depending on its proportion of the media spend), or; 2 Years RSA or any single country – any one media
The licence begins on 1st insertion and 1st insertion can be expected within 6 months of the delivery of the finished job to the agency/client.
Work can be licensed for a minimum period of 6 months as per rates below. Less than 6 months in an advertising context is not realistic, however, for web use, where the images will be taken down as soon as the licence expires, a lesser period and cost can be applied.
Exclusivity
Standard trade practice, with reference to the original commission, will give the client exclusivity for the period of time, in the specific territories agreed and included in the fee.
Clients and advertising agencies are concerned that the images they commission, and for which they pay the origination expenses, should not fall into the hands of competitors or become associated with other products after the initial licence period has finished. To prevent this, we will not licence the images further, for example through a library, without client and agency permission, during the BUR (unless otherwise agreed).
The sensitivity of the subject matter should always be taken into consideration, for example, an image that could be used to good effect by a competitor of the original client. Where material is not sensitive, it is unlikely that an agency or their client would withhold this permission. This will be negotiated with the individual agency/client before the shoot takes place, as should other related issues such as confidentiality.
It is expected that once any confidentiality period is over, the photographer and agency can use the image for their own PR purposes. This use should include entry into competitions by the photographer and the agency with credits to the photographer, client and agency
On expiry of the initial exclusivity period, the commissioner should be offered first option to extend the exclusivity clause at a negotiated rate.
Copyright explained
Many clients still want to obtain copyright from the photographer for a variety of reasons, the main ones being a lack of ‘copyright’ understanding and the fear of having to spend more money for further use.
In principle, we are opposed to the assignment of copyright. However, we recognise that agencies sometimes need to negotiate a fee covering any future use of the photographs without continuous reference to the photographer (who owns and should continue to own the copyright).
In such cases, the Licence to Use will specify “All Media print and digital” under Media Use, the Territory will be “Worldwide” and the Time Period will be “10 Years” (copyright will remain with the Photographer).
The licence will be exclusive to the Agency/Client and will cover all uses of the photography in relation to the product named on the licence. The photographer retains the right to use the photographs for promoting his/her own work. An ‘All Uses licence’ is still subject to the general Terms and Conditions and therefore does not permit use in relation to another product or sub-licensing, for example to a photo library. Neither can it be sold on as an asset of the company if the client goes into liquidation – at this point the licence would revert back to the photographer.
Individual countries
Countries have been graded by their GDP and then banded from A+ to D with a different percentage allocated to each band. For example the United States is an A+ country, this band has 150% for extra use attached to it – so additional use in the US would cost 150% of the BUR. The list of countries, the band and percentage allocated to them is called Country Grading by GDP.
How does the BUR get calculated?
The BUR is divided into three main sections with sub-sections in each:
-
Set Period | Amount of time in months or years
- Less than 6 months (15%) For website purposes only
- 6 months (30%)
- 1 year (35%)
- 2 years (48%)
- 3 years (71%)
- 4 years (94%)
- 5 years (116%)
- 6 years (140%)
- 7 years (188%)
- 8 years (211%)
- 9 years (234%)
- 10 years (257%)
-
Set Media | Print and Digital Usage
- Print Media Usage
- Ambient (25%) – includes Clean graffiti, backs of receipts, hanging strips in railway carriages, handles of supermarket trolleys, projection onto buildings, hot air balloons
- Brochures (50%) – Advertising brochures
- Billboards (125%) – Advertising billboards of all sizes
- Collateral (75%) – includes compliment slips, business cards, letterheads, sales brochures, visual aids for presentations, web content, product data sheets, product white papers, sales scripts & demonstration scripts
- Direct Mail (75%) – includes door drop leaflets & postcards
- International Media (13%) – includes titles like National Geographic, Time and Airline Magazines. When calculating usage, you must select a 3 year period at 100%, you must not select any other Media types and you must choose Worldwide Territory at 100% in order to arrive at the real cost of 150% of BUR
- Marketing Aids (25%) – include non-purchasable items/elements, includes umbrellas, ashtrays, beer-mats, exhibition panels, trolley panels
- Out of Home (125%) – includes posters, street furniture (bus shelters /kiosks / phone boxes), transit (buses / taxis / subway / lorries / airport / post / bus stations) & alternative (stadiums /bike racks/ petrol pumps/ rest areas)
- Packaging (60%) – Packaging includes printed packaging as well as labels for CDs and DVDs. When calculating usage, you must select a 3 year period at 100%, you must not select any other Media types and you can choose any single Territory at 100% in order to arrive at the real cost of 150% of BUR
- Point of Sale (75%) – is also known as Point of Purchase
- Posters (100%) – include 96/48/16/12/6/4 sheet superlights, escalator panels, bus sides & panels, taxi wraps & seats, bus backs, tube/underground, client vehicles, garage forecourt, rail station and all public areas where advertising is screened (not cinemas).
- PR (25%) – includes editorial and industry competition and awards
- Press (100%) – includes trade, consumer, local, national, magazines & newspapers
- All Print Media (300%) – Covers all the above printed material
- Print Media Usage
- Digital Media Usage
- Company Website (40%)
- Digital Posters (50%)
- Direct Mail (70%) – Email campaigns
- Internet Advertising (70%)
- Intranet (20%)
- Mobile (25%) – includes device images and video
- PR (25%) – includes editorial and industry competition and awards
- International Website Branches (50%)
- Social Media (60%) – All social media platforms
- TV (100%) – includes Interactive, video, mobiles, CD’s & DVD’s.
- All Digital Media (300%) – Covers all of the above digital material
- All digital and printed media (500%)
-
Set Territory | Only some example countries are listed, contact us for specific countries
- Continents:
- Worldwide (450%)
- Europe Union Only (200%)
- Europe – Non EU (250%)
- Entire Europe (300%)
- Middle East (150%)
- South America (150%)
- USA (200%)
- Africa (125%)
- Asia excl Japan (250%)
- Asia incl Japan (300%)
- Oceanic/Australasia (125%)
- Nordics (125%)
- North America (250%)
- Central America (100%)
- Caribbean (100%)
- Middle America (170%)
- Continental S America (120%)
- Latin America (200%)
- Country Band A (100%) – Australia, France, Germany, Canada, UK etc
- Country Band B (80%) – South Africa (65% of SA only), Denmark, Greece, Hong Kong, New Zealand etc
- Country Band C (60%) – Angola, Cameroon, Costa Rica, Bosnia, Nepal etc
- Country Band D (40%) – Barbados, Botswana, Jamaica, Mauritius etc
- Continents:
