Usage fee
In principle, we differentiate between the dependent on circulation (licenses, royalties) and the independent of circulation (performance-related usage rights) transfer of works for use. Both variants are described and critically evaluated below.
Granting of usage rights
Design works are made available to the customer for use. This means that designers and potential users must agree on the ways in which users may use the works. This agreement process is guided by the principle of copyright purpose transfer, which states that the only rights that are transferred are those that the users actually need in order to achieve the contractually defined purpose of the work. Therefore, from the designer's point of view, it is strongly recommended that the contractual purpose regarding the intended use be formulated as precisely as possible. This calculation is usually based on the matrix of usage factors outlined below:
More detailed information can be found in the following webinar:: "How do I determine the appropriate usage factor in times of digitalization?"
Determination of the usage fee
The usage fee should be determined on a case-by-case basis depending on the usage factors. Intermediate levels are also possible. The total usage factor can range from 0.5 for minimal usage to 6.0 for maximum usage.
The usage factor is determined based on the sum of the following individual factors: user group, usage area, duration of use, and scope of use. It depends on the extent to which the work is made available for use, the rights that are granted (exclusive users or non-exclusive user groups), and the area (e.g. regional, national / a language area, D-A-CH, etc., multiple country/language areas, worldwide), duration (e.g. one year, several years, unlimited), and agreed scope of use (e.g. type of media, circulation, online reach).
Example
https://www.landmetzger-schiessl.de
In this example, the task is the design of a website for a small, private butcher shop in the Bavarian Forest on the border with the Czech Republic. It is a simple site with three subpages that should present the business, its owner and philosophy, and the main products.
| Design | 2.000,- € |
| Utilization factor 4.1 1,3 | 2.600,- € |
| Additional services | 1.000,- € |
| Total | 5.600,- € |
|---|
https://www.landmetzger-schiessl.de
This may seem like a lot for a small Bavarian butcher shop, but a globally available online German sausage store can quickly achieve a turnover that can absorb this initial investment, provided it has a good design and marketing approach. In addition, there is the possibility of agreeing on a compensation model with the butcher, which would mean that they would not simply pay an invoice amount upfront. Instalment payments, or turnover or revenue sharing, are conceivable options.
| Design | 2.500,- € |
| Utilization factor 4.1 | 10.250,- € |
| Additional services | 1.000,- € |
| Total | 13.750,- € |
|---|
This may seem like a lot for a small Bavarian butcher shop, but a globally available online German sausage store can quickly achieve a turnover that can absorb this initial investment, provided it has a good design and marketing approach. In addition, there is the possibility of agreeing on a compensation model with the butcher, which would mean that they would not simply pay an invoice amount upfront. Instalment payments, or turnover or revenue sharing, are conceivable options.
Utilization factor 0 = compensation without use (design service).
A utilization factor of 0 is to be applied when only the design fee is incurred, that is, when a design service is not used, and no rights of use are granted to the clients or users.
More information can be found in the following webinar:: "How can my client and I regulate the price through the rights of use?"