Licensing Your Digital Art: The Basics

digital art licensing

Digital art licensing lets you grant others defined permission to use your work while you keep the copyright. Worried about losing control of your art? Put the scope, the term and exclusivity in writing before anyone uses a file.

This guide sits within the wider topic of digital art, so start there if you want the bigger picture.

Item Value
Exclusive license Must be in writing
Non-exclusive license Does not have to be in writing
Exclusive licensee Can sue for infringement of the transferred rights
Non-exclusive licensee Cannot sue for infringement
Right to terminate a transfer (U.S.) 35 to 40 years after it is made

These points come from the Copyright Alliance and the Stanford Copyright and Fair Use Center. Both describe U.S. law, and rules and figures can change, so check the source before you rely on them.

What digital art licensing actually means

A license is permission, not a sale. Chris Wilson Studio’s guide describes art licensing as an agreement that gives another person or company permission to use your artwork in specific ways while you retain ownership of the art itself.

It helps to picture two separate things: the artwork you own, and the permission you hand to someone else. A company might license one of your illustrations for a line of notebooks, and you would still own the illustration.

That works because of how copyright is built. The Stanford overview says the creator generally owns the copyright at the start, and that ownership comes with a bundle of exclusive rights:

  • The reproduction right: making copies of the work.
  • The distribution right: selling or otherwise distributing copies to the public.
  • The right to create adaptations, called derivative works.
  • Performance and display rights.

The same overview notes that the owner may sell or license any of these rights, which is why one piece of art can be used in several different ways. You can read more about who owns what on the Stanford page.

If you are still choosing gear to build a body of licensable work, the guide to best drawing tablets for digital art is a useful next read.

digital art licensing Team gesture
Several people bring their fists together above a table.

License, assignment or work for hire: what is the difference?

These three terms decide whether you keep your art, so it pays to know them. The Stanford overview explains that when a copyright owner transfers all rights unconditionally and retains nothing, it is generally termed an assignment. When only some of the rights are transferred, it is known as a license.

Work made for hire is a separate route to ownership. In the Stanford overview:

  • If an employee creates a work in the course of employment, the employer owns the copyright.
  • If an independent contractor signs a written agreement saying the work is “made for hire”, the commissioning party owns the copyright only if the work fits one of the listed categories.
  • Works outside those categories count as made for hire only if an employee created them within the scope of employment.
  • If the creator has sold the entire copyright, the buyer becomes the copyright owner.

So if a client contract says work made for hire or asks you to sign over all rights, you are being asked for something much bigger than a license. Read that wording closely before you sign.

Exclusive or non-exclusive: which license fits?

This is the choice with the biggest effect on your future options. In an exclusive license, the transferred rights can be exercised only by the licensee, and no one else, including you as the licensor, according to the Stanford overview.

In a non-exclusive license, the owner retains ownership of the copyright and keeps the right to license the same right to others, as the Copyright Alliance explains. That means you could license one image to several companies.

The Copyright Alliance lists the practical differences:

  • Suing: an exclusive licensee is treated as the owner of the transferred rights and can sue for infringement of them. A non-exclusive licensee cannot.
  • Writing: exclusive licenses must be in writing, while non-exclusive licenses do not have to be. Putting both in writing is still sensible, because it shows what you agreed.
  • Recording: the U.S. Copyright Office can record transfers and other documents, which is not required but can be useful.
  • Termination: both kinds are subject to the owner’s termination rights.

On termination, the Stanford overview says authors or their heirs can terminate a transfer of copyright ownership 35 to 40 years after it is made. Copyrighted.com’s guide adds a practical warning: an exclusive license can limit your future ability to republish or reuse your work.

What to settle in a licensing agreement

“Use my artwork” is too vague to protect you. The Chris Wilson Studio guide says a useful agreement should define the details of the usage rights, and it lists these items:

  1. Which artwork can be used.
  2. Which products or media it can appear on.
  3. Where the artwork can be distributed.
  4. How long the company can use it.
  5. Whether the license is exclusive or non-exclusive.
  6. Whether the artwork can be modified.
  7. How you will be paid.
  8. When the agreement ends or can be renewed.

The Stanford overview adds that owners commonly place limits on a transfer. For example, the owner may limit it to a specific period, restrict it to a specific part of the country or world, or allow the right to be used only through certain media.

Payment comes in several shapes, according to the same Chris Wilson Studio guide:

  • Royalties: a percentage tied to sales or another defined measure.
  • A flat licensing fee: one agreed payment for the specified use.
  • An advance: money paid up front against future royalties.
  • A combination: an advance or fee together with continuing royalties.

The payment model alone does not tell you whether a deal is good, because a higher percentage on narrow sales may be worth less than a lower one on a large product line. If you also sell your own work directly, the guide on how to sell digital art online is a helpful companion to any licensing deal.

Open licenses, custom licenses and multi-licensing

Not every license is a negotiated contract. Copyrighted.com describes Creative Commons licenses as standardized agreements that help creators share work while retaining some rights.

  • CC BY lets users use, distribute and modify the work as long as credit is given to the creator.
  • CC BY-NC permits use and modification for non-commercial purposes only, and credit to the creator is still required.
  • CC BY-NC-ND is the most restrictive: users can share but not modify or use commercially.

Custom licenses are agreements tailored to a specific project, and Copyrighted.com says they are often used for commissioned art. That is usually where you will negotiate the terms listed above.

A work can also carry several licenses at once. Copyrighted.com gives the example of a photographer allowing personal use under a Creative Commons license while charging for commercial use, and notes that you can change a license later, but only for future distributions, not past ones.

This article is general education, not legal advice. For a contract with real money or exclusivity at stake, a qualified copyright attorney can review the terms for you.

Frequently asked questions

Do I keep my copyright when I license my art?

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Usually you keep ownership of the artwork itself. With an exclusive license, though, ownership of the specific rights transferred passes to the licensee, so read exactly which rights are covered.

Does a license have to be in writing?

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An exclusive license must be in writing under the Copyright Alliance’s description of U.S. law. A non-exclusive license does not have to be, but a written agreement is the safer record of what each side agreed.

Can I license the same artwork to more than one company?

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Yes, if each license is non-exclusive, because you retain the right to license the same right to others. An exclusive license for that right would stop you.

Can a license be revoked or changed later?

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Copyrighted.com says a license can be revoked if its terms allow for revocation or if the licensee violates the terms. Changing the license type applies only to future distributions, not past ones.