GLOSSARY OF CONTRACT TERMS

All rights: selling or assigning all rights to a piece of artwork for a specified period of time.

Category of use: limits specific uses to advertising, promotion, editorial, corporate, or other uses, so that the artwork purchased for one market (e.g. editorial) may not be used in another market (e.g. advertising) without further agreement or consideration.

Edition: limits usage to a given edition, such as hardcover, quality paperback or other edition.

Exclusive unlimited rights: artist may not sell any use to anyone else. Sale of original art is a separate transaction. Artist may display the work and retains authorship rights. Under copyright law, artist may reclaim the rights granted after 35 years.

First rights: generally the same as one-time rights, but buyer pays higher fee to be the first to use the image.

Flat fee means that you're being paid a set fee, agreed upon by art buyer and illustrator, that does not include an additional payment of royalties.  In the contract you negotiate specific grant of rights from your bundle of rights called "copyright." The grant of rights can include one-time rights, first rights, reprint rights, all rights (for a specified period of time), unlimited rights, and exclusive unlimited rights. The artist retains authorship rights. Exclusive grant of rights from artist to publisher must be conveyed in writing. Non-exclusive grant of rights need not be conveyed in writing, but it helps in keeping rights transactions clear.

Geographic area: limits the territory in which the art can be distributed.

Mass market books appeal to a large audience and are sold in stores other than major retail book stores.

Medium of use: specifies the form in which the art will reach the public, such as trade magazine, brochure, annual report, album cover, etc.

One-time rights: artwork is "leased" on a one-time basis. One fee is paid for one use. The buyer has no guarantee he is the first to use the piece. Rights revert to creator after use.

Second serial (reprint) rights: for newspapers or magazines, the right to use artwork after it has first appeared in another publication.

Time period: Limits the length of time during which the art can be used.

Trade books are hardcover or high quality paperbacks and sold almost exclusively in retail book stores.

Unlimited rights: the purchase of all rights connected with the product for all media in all markets for an unlimited time. Artist retains copyright. Rights that do not compete with the purchaserÕs product may be sold.

Work-for-hire (WFH) essentially means you're working as if you are an employee, but without any of the benefits of actually being an employee. The art buyer claims all copyrights and authorship of the work. They can do whatever they wish with the work (including giving the actual artist no credit for the work, or crediting the work to someone else, among other things). Unless the artists negotiates otherwise in the contract, the art buyer retains the original work. The artist also needs to get permission from the buyer to use the work in portfolios or for self-promotion.