Intellectual Property (IP) is a complex beast and it’s something we encounter a fair bit. We’ve laid it out nice and simply.

When a design is created for a client, who owns the rights to that design?

In Australia, intellectual property laws safeguard all designs and artwork. Copyright ownership is automatically conferred upon creation and extends to the author, or in the context of a design studio, the employing entity.

The client's payment for a commissioned project covers the final product's exclusive use, such as a digital flyer. However, it does not include ownership of the initial project files for reproducing or reusing the design, the right to replicate the overall design tone in other projects, or an ongoing 'file bank' service.

But I’m the client, why do the project files not belong to me, so I can use it personally or send to another designer?

Graphic design businesses work when clients keep coming back for more. It's all about consistently delivering fantastic work that clients love and want to stick with. When a designer creates a look and feel that clients love and want to use again, it makes sense for the designer to get ongoing royalties for using that style on other projects.

Think of it like this: A designer who creates a unique, signature style should be credited when others emulate that style. Just as a client who hires a top designer expects original work, designers deserve recognition for the effort that goes into developing their aesthetic. It would be unfair for another designer to simply replicate that style at a lower cost. Designers have a right to benefit from their hard-earned reputations.

What about Logos and company identity? Does that mean that I cannot use my logo as I wish without infringing on IP?

In theory, yes. There's an argument that a logo should possess the adaptability to evolve alongside the future identity of the corresponding business.

This rationale is why design studios, such as South and many designers in Australia, commonly opt to transfer copyright and intellectual property ownership to the client upon receipt of the final payment for the logo or branding project. Clinging too tightly to intellectual property rights for logos might impose unnecessary constraints on clients and could be perceived as ethically questionable.

What about websites? Who owns the website?

Similarly, for website projects, clients commission the final product accessible on the internet. However, the payment does not grant rights to the original project files, which contain valuable knowledge and methods. Ownership of these files remains with the designer, and their release could pose risks of reverse engineering.

You are paying for the expertise and knowledge provided, but the payment does not grant you rights to the project files. These files have the potential to be reverse engineered and utilised to the advantage of a competitor.

What happens if I want something designed that you cannot accomplish or is outside of your skill base

In this scenario, project files may be shared exclusively for the specified job, subject to the acknowledgment and acceptance of terms by both the client and the designated designer. However, if we have reservations about the intended use aligning with our design principles or if the client has a history of intellectual property breaches, we may choose not to release the files.

What about when I provide a past project to a new designer for recreation?

If you bring an existing item for recreation, you absolve us of any intellectual property and copyright liability when we follow your instructions to generate a similar product. This implies that you possess ownership of the original collateral.

In essence, if we replicate something for you that isn't owned by you, not only are you responsible for any ensuing liabilities, but we may be held accountable as well.

Can I purchase project files from you for use by someone else?

While in theory we could sell all rights to future work for this client, doing so is not ideal since it would mean forfeiting all potential future business with them. To determine an appropriate fee, we would need to review the history of this client's projects with us and factor that into our calculations to arrive at a reasonable amount.

If I am transparent that I require project files to be delivered once the work is finished, would you be open to working with me?

Of course! If you let us know upfront, we will arrange a fee to release the files upon completion and this will be included in the amount quoted. Unfortunately with websites where custom code is produced, we will not release project files.

Whilst some of the above points may seem tough, you need to consider that by infringing upon IP and Copyright you are essentially stealing from the author and their intellect which created the design.

Parallel examples of IP can be found in.

Architecture – when a building design is created, the final plan is what is being purchased, not the original project files that can be modified.

Restaurant – when purchasing a meal, you are not acquiring rights to the recipe, ingredients, cooking method, or tools used to prepare it. You are simply paying for the meal itself.

Video Games – when purchasing this software, you are only granted rights for personal use. The source files used to create the components within the software are not provided to modify or use as you wish.

We hope this has provided some clarity, and we are always available to discuss the terms and conditions and answer any questions before you accept a job. Please feel free to reach out so we can ensure you are comfortable with the details before proceeding.