Copyright Buyout / License Fee Calculator

Understanding the copyright buyout and license fee calculator — concept and principle

Designers, illustrators, photographers, writers and composers often price the same piece of work differently depending on how the client will use it. A small local use costs less than worldwide use in every medium, and a full buyout of the rights costs the most. This calculator applies a usage multiplier to your limited-use fee and adds a source-file surcharge. It works with any currency.

How it is calculated

License part = fee for limited use × usage multiplier

Source files = license part × source files fee % ÷ 100

Total fee = license part + source files = base fee × multiplier × (1 + source %)

• Fee for limited use: your price for the narrowest agreed use, for example one medium, one region, a limited period.
• Usage multiplier: 1 for limited use, 2 for broad use, 3 for a full buyout. This is the calculator's simple scale; set your own value if you price differently.
• Source files fee (%): a surcharge for delivering layered or editable files (for example PSD, AI or project files).

The principle

The value a client gets from creative work grows with the scope of use: more media, a larger territory, a longer period, or exclusive ownership. Pricing by usage links the fee to that value, and a multiplier is a transparent way to express it. Source files are priced separately because they let the client modify and reuse the work without you, which is extra value beyond the finished file. The surcharge is applied to the license part, so it grows with the scope too.

Worked example

1. License part: $2,000 × 3 = $6,000.00.
2. Source files: $6,000 × 25% = $1,500.00.
3. Total fee: $6,000 + $1,500 = $7,500.00.

How to read the result

The total is a starting quote, not a market rate. Compare it with what you would earn from the same work licensed several times to different clients: a buyout ends that possibility, so it should cost noticeably more. Spell out in the contract exactly what the client receives: media, territory, duration, exclusivity, whether the rights are assigned or licensed, and whether source files are included.

Common mistakes

• Saying "buyout" without defining which rights, territory and period it covers.
• Including source files by default without charging for them.
• Applying the multiplier to the creative fee and to expenses such as stock images, which have their own license terms.
• Assuming a buyout also transfers moral rights; in many countries, including Korea, moral rights cannot be transferred.

Frequently asked questions

Is a buyout the same as an exclusive license?

No. An exclusive license grants use rights while you remain the owner; a buyout usually means assigning ownership of the economic rights.

How do I choose the multiplier?

Base it on how much wider the use is than your limited-use price, and on how much future income you give up. Keep a consistent scale across clients.

Sources: Graphic Artists Guild, Handbook: Pricing & Ethical Guidelines · World Intellectual Property Organization (WIPO), Understanding Copyright and Related Rights