Tuesday March 9, 2010

Are You Using Stock Photography in Your Business Illegally?

Casual Professional
© Photographer: Eperceptions | Agency: Dreamstime.com

Did you know? Many small, home based, and internet based businesses use stock photos illegally. And you could be one of them. Let me explain...

There's a common misconception among small, home based entreprenuers that stock photography can be used for anything they want. In fact, many believe they "own" the pictures free and clear if they've purchased them from a stock photo agency. But that's not actually true.

You see, stock photos are like software: They are licensed, not purchased or sold. When you license any stock photos, you have purchased the rights to use those photos in certain ways. You have not however, bought the actual copyrights to those pictures, and usually you haven't bought the rights to sell them to others.

In fact, you're often not even allowed to use those stock photos to create products which you plan to resell. It all depends on the type of license you pay for.

Standard Royalty Free Stock Photography licenses allow you to use the photos in advertisements or other promotional materials you create for your company. You can use them in multiple projects usually, and depending on where you bought the license, you may be able to use them in an unlimited number of materials. Some places restrict this though. If you're creating an advertisement that will go out to a million people for instance, you may be required to buy what's referred to as an "extended use license".

What a lot of small home based business owners don't realize is that they can't legally use those standard stock photo licenses to make products they intend to sell. If you want to create home decor wall hangings using a stock photo for instance, and you plan to sell those wall hangings to your own customers, you must purchase the extended use license for each photo you plan to use.

The biggest mistake most home based or internet based businesses make though, is creating website header graphics and website design templates with those stock photos. The problem with this? They don't buy the extended license rights. Instead they simply buy the standard royalty free stock photo licenses, and think they can do whatever they want to with those photos. And that is unfortunately completely illegal.

Many stock photo agencies do not allow you to create website headers or templates that you plan to resell to others. You're certainly allowed to make them for your own websites yes, but you're not allowed to make them for sale.

Some agencies do allow this usage - but only if you purchase the extended license rights. And those license rights usually start at $20 for each photo you want to use. In fact, many stock photography agencies charge $50 to $100 or more per photo for extended license rights.

So if you wanted to create a package of website templates for instance, and you wanted that package to have 20 different designs in it, then you'd need a minimum of 20 photos - one for each design. And that's assuming you just use one photo per design of course. If you create a custom design which incorporates several photos, you have to buy extended license rights for each photo used in that design.

As you've probably realized... that can get very expensive! Just 1 stock photo per design will cost you a minimum of $400! And again: That's of course assuming you're only using one picture per design.

If you do not pay for the extended license on those photos and you use them anyway, you are breaking the law. And it's very likely you'll be sued for it too. There are stories in the news, across the web, and in discussion forums almost every month about new lawsuits on this very issue. In fact, a large stock photo agency filed suit on a very large website template company in late July 2006. You can read the news story at that link, but the gist of it is what I've been talking about throughout this article: The template company was said to be selling templates which used stock photos illegally.

So, if you're going to use stock photos in your business please be sure to do so with full and complete legality. Be sure to read the license rights and terms of service before you buy from any agency - online or off. And if you're planning to buy website templates or header graphics for your website projects: Be double sure to ask the seller what license they have paid for! Because even if you buy products others have created illegally, you are still breaking the law and can be sued or prosecuted for theft too!

© 2006, Kathy Burns-Millyard. All Rights Reserved.

You can buy individual stock photo licenses for as little as $1 each - that can legally be used in website graphics, headers and templates - at Big Stock Photo.

Note: I am not a lawyer but I am a semi-professional stock photographer, and all information noted in this article can be verified. Just visit any stock photography agency online and read their terms of use and licensing agreements.

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Above: New Royalty Free Stock Photography by Kathy Burns-Millyard

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About This Site...

This website is here to help new photographers and business owners learn some of the basics of selling or using stock photography. My portfolios are no longer available here, instead they have been condensed onto my main Electronic Perceptions website.