*Contract Monitor 2:1*

Disclaimer: This information is true and accurate as of the dates specified, to the best of our knowledge and belief, and is provided by the Graphic Artists Guild to help artists make informed choices.

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G R A P H I C A R T I S T S G U I L D

N a t i o n a l C o n t r a c t M o n i t o r

v o l . 2 , n o . 1

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May, 1999

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IN THIS ISSUE:

- DID YOU MISS US?

The Monitor Returns

- TRENDS:

Putting a Lock on Contract Discussion

- AN "UNUSUAL" SYNDICATION CONTRACT

King Features Syndication Division

- CONTRACT COMMENTARY

- HOW-TO: Write a Letter of Agreement

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DID YOU MISS US?

Well, readers, we are back publishing after a five month

hiatus. Sorry about that. The Contract Committee has found

itself firming up other parts of the contract program,

drafting a new Contracts Chapter for the 10th Edition

of the Guild Handbook: Pricing and Ethical Guidelines

and completing the first writing of a manual for the

Contract Point Person Program within the Guild chapters.

But here we are with a promise of more frequent mailings

in the future. Coming up next issue is coverage of three

stock agency contracts, followed by a special on greeting

card contracts.

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TRENDS: Putting a Lock on Contract Discussion

Lately we've noticed an addition to the standard

confidentiality clause that is found in many

contracts. Usually worded to prevent the disclosure

of company secrets and information concerning the job,

confidentiality clauses are now being drafted to prevent

discussion of the contract terms as well. This

addition will make it harder for artists to publicize

unfair client terms within the community. Once the

contract is signed, the artist is bound by the

clause to keep the terms private.

What can you do? Discuss the terms of the document

BEFORE it is signed. Of course we realize that during an

assignment company secrets may be on the table and it is

reasonable for the client to want assurances that the

artist will not be indiscreet. But we are talking about

discussion of standard business practices, not the next

release of Essence Make0ver 5.0!

A typical Confidentiality Clause reads:

=>Artist (licensor) may, during the course of

providing his or her services hereunder or in

relation to this Agreement have access to, and

acquire knowledge regarding materials, data,

systems, and other information of or with respect

to...which may not be accessible or known to the

general public. Any knowledge acquired by (artist/licensor)

from such materials...shall not be used, published or

divulged by Licensor to any person, firm...

Okay, sounds fair. Now, here's the new language we are seeing:

=>Licensor specifically agrees that the foregoing

confidentiality obligation applies to the terms

of this Agreement and any information disclosed

to (artist/licensor) in any document provided

to (artist/licensor) by (the company).

There are two ways to look at this new language:

1). The client feels public disclosure of the terms

may give the competition unfair advantage. Perhaps the

client doesn't want competitors to know what goes into

the cost of manufacture of a product. Or...they are

planning a worldwide advertising campaign using your work

which they are going to spring on the competition or...

2.) The contract terms are so unfair that the client

would prefer no one outside of the artist have knowledge

of them for the sake of good public relations.

The Monitor, or course, wants to believe that no client

would have need of reason number two. However, we would like

to caution you, as always, to read the contract carefully,

discuss the terms within the community (and with a lawyer

if necessary) and sign it WHEN YOU FEEL CLEAR ABOUT THE TERMS

OF THE JOB and its fairness to your own business.

 

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KING FEATURES SYNDICATE:

Syndicating All Rights and Authorship, Too?

Hearst Holdings is a large media conglomerate based on

the East Coast. Included among the many Hearst holdings

is the King Features Syndicate Division, responsible

for the licensing and distribution of a wide variety of

features across the media universe including many of

the comics you see on Sunday.

In this issue we'd like to look at a syndication contract

sent by King to an illustrator. The artist has been

asked to produce a series of illustrations, bi-weekly,

for a sports column written by someone else. The contract is

basically a boilerplate, covering a broad range of King

assignments. The artist did a good job of reading the

contract and tried to negotiate points that were bothersome.

However, King's lawyers appear to be stubborn. So we thought

we'd add our voice.

The Monitor would like to note that the artist was

negotiating while working on the job, working without a

signed contract. We worry about a scenario like this,

but luckily everything turned out okay.

We turned our copy of the King Contract over to Stu Rees,

a legal advisor whose specialty is syndication contracts

and intellectual property. For more on Stu you can visit

his website at: www.stus.com.

STU WRITES:

This "syndicate" contract is really more of an abbreviated

syndicate contract. Basically, syndicate contracts are

structured as a hybrid between a partnership arrangement

and a literary agent contract.The artist creates the

characters, the humor, and the illustrations but, in turn,

owns the copyright and gets paid a percentage of income

based on how well the work does, rather than a fixed

amount per drawing.

This King Features contract treats the artist like an

employee, or a long term independent contractor, not

like a partner. The artist bears no risk, gets a fixed price

for the work, and has very little further profit potential.

In fact this contract includes a work-for-hire-clause;

the artist relinguishes authorship to the client along

with all rights to the work (as opposed to where the artist

owns his copyright, but transfers it to the syndicate).

(More on that in a moment.)

Stu stressed the importance of convincing the client of the

advantages of pro-artist changes to contracts and we agree

It is always a good idea to explain to the client the reasoning

behind changes. What follows are specific clauses with questions

from the artist and further commentary from Mr. Rees. We hope

you can use this commentary to negotiate future contracts from

with clients.

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KING FEATURES CONTRACT COMMENTARY

(Note: We've capitalized words in some clauses for added emphasis.)

=>REPRINT LICENSING.

In the event YOU [the artist] INITIATE negotiations for a

Reprint License which Syndicate accepts during the terms

of this agreement, then Syndicate will pay you 25% of the

licensee fee actually received from the Reprint Licensee.

The term Reprint License shall an agreement under which a

single bi-weekly release of the Commissioned Material has,

after the publication date set by the Syndicate, been licensed

for one-time publication in a single issue of a newspaper,

magazine, or periodical...

The 25% figure is an industry standard. If the artist is acting

as an agent for King then perhaps a Rep fee of 35% would be

more reasonable. Just a thought! What is also odd is that

King is offering incentive to the artist to relicense the work,

but putting a limit on releases available to sell. This means

that the artist cannot sell a collection of the work. And what

about third-party sales: should the artist benefit?

The Client could respond to the artist query by rewriting the clause

to allow release of more than one column at a time and amend the fee

structure to reflect sales generated not only by the artist, but also

by the Syndicate or a third party--a change which could make the

resale royalty clause much more attractive.

STU'S ANALYSIS:

Artists should always consider negotiating for provisions

where the artist gets a cut if the artist is successful in

reselling his syndicated work to new markets. The point

artists should make is that turning artists into advocates

for their own cartoons is particularly effective because

artists know their work best and often can think of innovative

ways to market it. Syndicates almost always will grant the

concession since they only stand to gain.

Yes, King would stand to gain. One of the roles of a syndicate

is to solict and secure reprint licenses, while the role of the

artist is to create works with licensing value, but not necessarily

to act as sales reps. Added value should carry added incentive!

Is 25% enough?

Why would King exclude multiple reprints? Stu told us that the

syndicate might want to to prevent the artist from taking major

sales away from the syndicate (and, in particular, from the sales

staff). The artist is correct in lobbying to eliminate the single

column restriction, and can even argue that it is in the syndicate's

best interest since a major sale is a good thing.

This might prove to be a difficult negotiation with King, since the

column contains work by both an author and an artist. The author might

be working on his own resale deals including an exclusive clause with

King to sell collections of the work.

Sadly, the artist would not receive a commission on the author's

resale, since the sale was not initiated by the artist. Remember,

the agreement is W4H. King owns all rights and is not obligated to

compensate the artist forany royalties. In fact, gadflys that we are,

we want to make sure our readers know that the the W4H clause allows

King to resell the illustrations, with or without the author's work

and with or without the artist's permission!

One last question: notice that the contract definition of Reprint

License is limited: only reprints appear covered. What if an artist is

able to sell a merchandiser on a concept, such as a T-shirt or mouse pad

(whether based on a specific work or on the general nature of the

feature)? Why not expand the clause to cover all resale potentials?

Uhmmmm, could it be because it's WORK-FOR-HIRE?

=>WORK-FOR-HIRE.

You agreed with Syndicate that the Commissioned Material

shall be considered a WORK MADE FOR HIRE for King Features

Syndicate, Inc...relationship with Syndicate shall be that of

independent contractor...You agree that King Features Syndicate

Inc. shall have ABSOLUTELY ALL RIGHTS in the Commissioned Material

and the title, elements and characters included therein THROUGHOUT

THE WORLD, including the right to procure copyrights and renewals

and extension thereof, in its name or in the name of its designee,

in the United States of America and in every other country of the

world. All of said property...shall be subject to the agreement

dated December 31, 1943 between said King Features Syndicate, Inc.

and Syndicate. Said King Features Syndicate Inc. and Syndicate shall

have all of the exclusive rights in and to the Commissioned Material

that are accorded by law to the author of an original work and to

the proprietor of a duly copyrighted work.

THE ARTISTS ASKS:

I'm worried that the phrase"...King Features shall have absolutely

all rights in the Commissioned Material and the title, elements

and characters included..." would not allow me to use my drawing

style for anything else. The clause also appears to bind me to an

agreement made in 1943 that I have no knowledge of.

(And The Monitor is worried that the artist is potentialy signing a

Work-for-Hire agreement. We note that signing a W4H is always a personal

choice, but is the fee you will receive worth the loss of control and

future resale profit, not to mention loss of right to be called the

author?)

The client could respond to the artist query by changing the clause

language to reflect that rights only pertain to specific characters

created by the artist for the assignment. As to the mysterious 1943

agreement, the artist may be the first person to ask to actually read

the agreement. It appears that the agreement was made within King

to handle copyrights among its various entities. But why is the 1943

Agreement included here and what can the artist do about it?

STU'S ANALYSIS:

King Features' inclusion of work for hire language means that

King Features is treated under copyright law as the CREATOR OF

THE WORK. Normally, such a provision would be a deal-breaker

in a syndication contract since the artist creates and owns

the characters. Here, however, the artist is illustrating

the work of someone else and receiving a guaranteed payment.

So King might feel granting full ownership to the syndicate is fair

and would clearly be an absolute requirement by the Syndicate.

(Well, King may think that this provision is fair, however, The Monitor

cautions readers against accepting work-for-hire situations. Instead

opt for granting specific copyright usage and re-use rights.)

When King claims all rights in the work provided under the contract,

including characters, there is probably some room for argument over

what constitutes a character as opposed to what is a general

drawing style.

In order to reduce the possibility of a disagreement, that particular

sentence should be revised to include the following text:

"You agreed that King Features Syndicate, Inc. shall

have all rights in the Commissioned Material and the

title, element and characters included (but not to the

general artistic style).

Regarding the reference to the 1943 agreement: since the Syndicate is

reluctant to provide the agreement to artists, a disclaimer is called

for to ensure that the artist is not granting more rights than what is

readily known.

Here's what Stu suggested. The second to last sentence of the

paragraph should be revised to include the following text:

"...and Syndicate, but nothing in said agreement shall

expand the rights granted by you beyond those enumerated

in this Agreement."

=>CONTRACT RENEWAL

You hereby give Syndicate two (2) options to renew this Agreement

for two (2) additional terms of two (2) years each UPON THE SAME

TERMS AND CONDITIONS. The option as to said renewal terms shall

be exercisable by Syndicate giving you written notice at least

thirty (30) days prior to the expiration of the then current terms.

THE ARTIST ASKS:

If I'm giving King two options to renew for two additional

terms of two years each "upon the same terms and conditions,"

am I also held to the same pay scale each time? I would hope

there would be some allowance for an increase! Also, if

the renewals are under the same terms and conditions, aren't

the two year options part of those conditions? Can we take

out the clause and simply renegotiate at the end of two years?

STU's ANALYSIS:

King Features needs a long term contract to create some stability,

to lock in a good artist at a low pay rate, and to prevent the

need for frequent re-negotiations. It is fair to give the

syndicate the stability it wants, but there should be an

adjustment to the pay scale.

This can be achieved by adding the following text:

"...same terms and conditions, subject to a mutually

agreeable revision to the payment due under Paragraph 4(a)."

The above language limits the negotiations to just dollars.

The Syndicate may not accept this formulation since the

artist has no absolute requirement to agree. So, Stu, what

else can you do?

A reasonable middle ground would be to identify a

pay raise with options: such as $XXX per week

during option 1 and $XXX per week during option 2.

 

=>FAILURE TO DELIVER.

In the event that you (artist) fail to deliver the

Commission Material provided for, you expressly agreed

and covenanted, that...you will deliver or cause to be

delivered...ALL OF THE COMMISSIONED MATERIAL herein provided

for before you do any work for or furnish or cause to be

furnished any literary or artistic material to any other

person or party.

And...:

In the event you fail to deliver the finished art

work at least ten (10) weeks before publication then

(a) Syndicate shall have the right, among others, to

have any and all such material prepared for the balance

of this Agreement by substitute(s) of the Syndicate's

selection, and (b) Syndicate shall have all rights in

any and all materials so prepared,and (c) Syndicate

shall have the right to deduct from any and all monies

due you all of Syndicate's actual costs and expenses

incurred in having such materials prepared for it

by substitute(s) and have the same delivered to it.

Should you fail at any time during the term of this

Agreement to deliver the material at the time called

for herein...

These clauses carry the most severe wording in the contract,

wording which left the artist extremely worried.

THE ARTIST QUERIED:

Is this a non-compete clause? Am I agreeing not to do any

artwork for anyone else before I do my weekly assignment?

If so, this seems unfair. I have no intention of failing

to deliver, but if I do these drastic consequences seem

unnecessary.

The clause certainly could be read as a No-Compete Clause.

Let's look at the clause in context. The Syndicate seems to

want assurances, that the artist will not take other jobs that

would conflict with meeting obligations to King. Does King

accomplish anything with intimidating language which alienates

the artist? We understand that the artist's failure to deliver

carries very severe consequences to King which is under contract

to deliver in a timely fashion to its clients. Still, the client

assumes that they can control the workflow in the artist's studio,

which is a wrong-headed assumption. As long as the work is completed

and delivered on time the terms of the contract should be considered

satisfied.

MORE INSIGHT FROM STU:

The first paragraph is very strict. King Features realizes

that the artist will have other illustration work, and

they may fear that the artist may fail to deliver if the

other work is more lucrative. Under the provision, the artist

can juggle other work. In the event that the artist ever

misses his deadline schedule, however, the artist must forsake

all other work until he has finished ALL work under the King

Features contract.

ALL WORK! This provision is so harsh that it is likely

that the person writing it did not realize its severity.

What would be a reasonable compromise, is to require that

the artist bring his work current before working on other

projects.

This revision could be accomplished by adding the following

language to the end of the paragraph:

"...or party until you are brought current with the

Syndicate's delivery schedule."

STU ADDS:

The second paragraph reserves certain remedies to King

Features in the event that the artist fails to deliver.

Strong measures include the right to fire the artist and to

have others prepare the work. With typical syndicate contacts

such provisions are unacceptable since the artist is the

copyright owner and co-venturer. Here, the syndicate and

artist have what amounts to an employer/employee relationship.

Therefore, there should be a provision that limits King

Features to, at worst, firing the artist, instead of also

billing the artist for additional expernses beyond

the loss of revenue to the artist.

Such a limitation might look like this text, inserted at the

end of the first sentence:

"...delivered to it, but you [the artist] shall not be

responsible for any costs, expenses or damages exceeding

amounts due to you under this contract."

As mentioned earlier, Stu also recommends changing the contract

payment schedule from "due upon publication" (which is ten weeks

after the delivery of the work) to "due upon acceptance." This has

the obvious advantage of providing for payment ten weeks earlier,

but it also means that the syndicate would have ten less weeks of

payments that it can withhold if the artist fails to deliver.

What if the syndicate decides not to publish at all? Hmmm, another

reason to negotiate for payment "due upon acceptance."

 

CREDIT WHERE CREDIT IS DUE...

Stu also points out that the contract does not obligate King to

provide a written credit for the artist. Why no obligation? The

Syndicate is considered the legal author under the work-for-hire

doctrine (another reason not to sign W4H agreements). But artists

expect credit as a matter of course. In fact credits are good

advertising. So....negotiate! Provide the following provision,

inserted as a new paragraph:

"Syndicate shall include with each installment the

following credit: Illustrations by [artist]. Also,

Syndicate will not alter artist signature of the

artwork."

LAST, BUT NOT LEAST

In closing Stu also advocated changing the following warranty

and indemnity clause. Warranty/Indemnity Clauses define legal

responsibilities and methods of dispute resolution between the two

signing parties. To "indemnity" means to provide legal exemption

from penalties or liabilities incurred by one's (in this case the

artist's) actions.

=>WARRANTY/INDEMNITY

You [the artist] warrant that all Commissioned Material delivered

hereunder will be new and original, free from plagiarized,

defamatory, copyright infringing or otherwise unlawful matter,

or matter volatile of the rights of third parties and you

agreed to indemnify Syndicate and King Features Syndicate,

Inc. from all loss, liability, damage and expenses arising

out of the breach or ALLEGED BREACH of any of said warranties.

STU'S ANALYSIS:

This provision is rather typical. Syndicates need

such language to protect themselves from lawsuits, which

can happen very easily if the artist uses other people's

work or says untrue things. The point worth negotiating

is the inclusion of indemnity for "ALLEGED BREACH" of

warranties. Such language allows the syndicate to trigger

the indemnity whether or not the artist is shown to have

actually infringed on someone's rights.

(The Monitor thinks that this sounds like the artist is guilty

without a trial.)

From the syndicate's perspective, such a provision is

helpful because almost all lawsuits settle. From the

artist's standpoint, this allowance is a financial nightmare

because the syndicate's incentive is to settle no matter

what. For example, why would the syndicate fight a $5,000

claim when it could just force the artist to pick up the

tab? The best counterproposal is to strike out the alleged

breach language.

 

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FORMS, GLORIOUS FORMS

The Monitor would like to suggest a quick

addition to your business routine, one which

could, in the long run, save you time and

aggravation with clients. Next time a client

calls with an assignment why not close the deal

by faxing them back a copy of your studio's

Letter of Confirmation to be signed by both

parties BEFORE the work begins?

That's right...your studio Letter of Agreement,

an abbreviated contract on your Studio

letterhead, confirming your understanding

of the assignment, expected fees and contracted

rights for the assignment.

Why use a document like this? The strategy is to

place all parties in agreement about rights and

terms before the job begins. No nasty surprises

later!

Notice that we stress the word BEFORE. Contracts

faxed in by the client, after work has begun,

terms printed on the back of checks or supplied

by the artist on invoices are all examples of

after-the-fact-contracts. And working "after-the-

fact" means that you are working without written

agreement to rights and terms. Factors governing

the job, including reprint and third party

rights, alterations and the return of original

art are open to interpretation and, worse, tricks

of memory.

Also consider this: the earlier you and your

client finalize terms, the less complicated the

workflow will be later as the deadline looms--a

time when there is little energy for thoughtful

negotiation.

Letters of Agreement are also a way to sort out

good clients from bad. If a party refuses to sign

or negotiate a basic document protecting the job,

this might be an indication of even more problems

down the road. And problems can reduce the value

of the work for you and your studio.

OUT IT ON PAPER!

What follows is a basic Letter of Agreement (aka

Letter of Confirmation) based on forms and

contracts sent to us over the past year. As an

added plus, we ran it by Daniel Abraham, attorney,

illustrator, and chair of the Guild Public Affairs

Committee, for a tight overview. We've included

explanations and commentary. A formatted version of

the letter (sans commentary) can be viewed as an Acrobat

pdf on the Graphic Artists Guild Contract Monitor Web

Site at www.gag.org/contracts/contracts.html.

You can use our text to create your own basic form. Keep

a template on disk for later use. Or pre-print the Letter

of Agreement on the back of studio stationery, reserving

the front for cover letter and custom terms space.

One caveat--we'd like to emphasize the word "basic."

As always, we recommend enlisting the services of a

legal professional for complicated contractual agreements.

IT ALL STARTS HERE

Letters of Agreement look very much like standard business

letters. At the top is the basic correspondence information:

* Artist's Letterhead

* Company Name;

* Address; Phone; Fax; E-mail

* Your tax ID (Social Security) number

* A title: Art Commission Contract

(alternately, Agreement; Confirmation

of Engagement)

Unlike a standard business letter, the LOA

requires a specific reply, and it is important

that the instruction not be buried.

* This Agreement must be signed and returned before

Artist can schedule or begin this job.

Now the letter format continues:

* Date

* Name of Client/Company

* Address

* Phone/FAX

* Shipping (FedEx, Airborne) Number

* Name of Person Commissioning Art

* Your job number (will also be the invoice number);

The body of the letter both defines the job and assigns rights.

=>PROJECT TITLE (if any; client's purchase order

number, if available.)

=>DESCRIPTION (subject matter; size; color or black

and white; media; any relevant production

information.)

=>SCHEDULE (due dates) Sketch_____, Final_____

=>COPYRIGHT USAGE

Before we show you the rights clause The Monitor

would like to explain why you should use the title:

"copyright usage" instead of simply "usage." While

dealing with the Board of Equalization in California,

the Guild learned that the Board bases their denial

of the existence of copyright interests in reproduction

rights contracts in part on the lack of appearance of

the specific word "copyright." Describing usage as a

"copyright" sale eliminates the argument

Your LOA should include under copyright usage:

Rights transferred; duration of usage; limitations

on media in which used (if not covered under

"rights," e.g., print rights only, no electronic

usage); limitations on number of insertions (if

appropriate); limitations on geographical use

(ie. North American, English speaking editions, etc).

Owner of Original Art (only if different from below)

=>FEE FOR RIGHTS GRANTED (List the fee here)

=>TERMS (Note that numbering the terms in the body

of the contract can serve as a good navigational

support during negotiations).

1) RESERVATION OF RIGHTS: All rights not

expressly granted above are retained by the

Artist, including any electronic rights or

usage, and including, but not limited to,

all rights in sketches, comps or other

preliminary materials. Any use additional to

that expressly granted above requires

arrangement for payment of a separate fee.

Technically, all rights not specifically signed over remain

with the artist. However, the above clause backs up the

assignment of rights and further protects the artist.

2) REVISIONS: Revisions may be made only by

the Artist at the sketch stage. Additional

fees will be charged for revisions made

after (insert your standard here) sketches,

and for revisions reflecting a new direction to

the assignment, or new conceptual input.

We recommend the revision clause above as a matter

of studio policy. Here, the artist sets reasonable

limitations for revisions as well as fees for

unexpected changes. How many revisions are acceptable

to you? You may need to negotiate the amount of revisions

you are willing to make. Notice that the clause requires

the client to provide solid direction or to at least

compensate the artist if the established direction changes.

3) CANCELLATION AND KILL FEES: Cancellation

("kill") fees are due based on the amount of

work completed. Fifty percent (50%) of the final

fee is due within 30 days of notification that

for any reason the job is canceled or postponed

before the final stage. One hundred percent (100%)

of the total fee is due despite cancellation or

postponement of the job if the art has been completed.

Upon cancellation or kill all rights to the art revert

to the Artist and all original art must be returned,

including sketches, comps, or other preliminary materials.

This clause helps to establish payment terms for

partial and/or completed work even if the job is

canceled. The ownership of rights and the work

itself is also clearly defined. For more on Kill

fees see the Graphic Artist's Guild Handbook: Pricing

and Ethical Guidelines, as well as the

glossary on the Contract Monitor Website at

www.gag.org/contracts/contracts.html.

4) CREDITS AND COPIES: A credit line suitable to

the design of the page will be used. Client

agrees to pay an additional fifty percent (50%)

of the total fee, excluding expenses, for

failure to include credit line. Credit line is

required independent of Artist's signature,

which shall be included at Artist's discretion

unless otherwise agreed in writing above. Client

agrees to provide Artist with ten (10) sample

copies of any printed material.

5) PAYMENT: Payment for finished work is due

upon acceptance, net thirty (30) days. The

Client's right to use the work is conditioned

upon receipt of payment within thirty days of

acceptance, and upon Client's compliance with

the terms of this agreement. A two percent (2%)

monthly service charge will be billed against

late payment.

6) ORIGINAL ART: Original art remains the

property of the Artist unless expressed in

the agreement. Client is responsible for

return of original art in undamaged condition

within thirty (30) days of first reproduction.

7) ADDITIONAL EXPENSES: If Client does not

provide a courier/shipping number in the space

provided above, shipping charges will be added

to the final invoice. Client agrees to reimburse

Artist for the following expenses:

_____Messengers; _____Models;_____Props;

_____Travel; ____Telephone; _____Proofs;

____Transport Disks; ____Transparencies;

____Film Output; ____Other;__________

8) PERMISSIONS AND RELEASES: The Client agrees

to indemnify and hold the Artist harmless

against any and all claims, costs, and expenses,

including attorney's fees, due to materials

included in the Work at the request of the

Client for which no copyright permission or

privacy release was requested, or for which uses

exceed the uses allowed pursuant to a permission

or release.

9) MISCELLANY: This Agreement shall be binding

upon the parties, their heirs, successors,

assigns, and personal representatives. This

Agreement constitutes the entire understanding

of the parties. Its terms can be modified only

by an instrument in writing signed by both

parties, except that the Client may authorize

expenses or revisions orally. No terms attached

to any check for payment under this Agreement

can modify the Agreement except under an

independent instrument in writing signed by both

parties. Any dispute regarding this agreement

shall be arbitrated in [your city and state here]

under the rules of the American Arbitration Association

and the laws of [state of arbitration]. A waiver of a

breach of any of the provisions of this Agreement shall

not be construed as a continuing waiver of other

breaches of the same or other provisions. This

Agreement shall be governed by the laws of the

State of (insert name of your state here) and

courts of such state shall have exclusive jurisdiction

and venue.

Not that inserting the name of your state above prevents

court actions from taking place in another locale,

which could be costly to you.

Now, formalize the form with a signature area.

* Artist Signature/Date

* Client Contact Signature/Title/Date

* Accounts Payable Contact Name/Phone

So, that's the basics! We've kept the wording tight so

that it can fit on one 8.5 by 11 inch page. In closing,

The Monitor reminds you to: Always customize the description

and terms to fit the job you are doing and...be open to

negotiation with your client as well as ready to walk away

from a bad deal.

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The Graphic Artists Guild National Contract Monitor is an

intermittent e-mail service published by the Graphic Artists

Guild, a not-for-profit organization headquartered in the

State of New York. Information provided in the Contract

Monitor is accurate to the best of our knowledge as of the

date shown above. The Graphic Artists Guild provides this

information to members to help them make informed choices.

The Guild encourages reproduction and distribution of this

document for the benefit of free-lance artists and designers.

Please credit the Graphic Artists Guild, and do not alter

contents.

Back issues of the National Contract Monitor are posted at

www.gag.org/contracts/contracts.html. The web site also

contains a glossary of legalese and other useful features.

The Graphic Artists Guild promotes and protects the

economic interests of its members. It is committed

to improving conditions for all creators of graphic

art, and to raising standards for the entire industry.

The Guild is a union that embraces creators at all

levels of skill and expertise who produce graphic art

intended for presentation as originals or reproductions.

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For submissions/comments, send your request to

Paul Basista at <execdir@gag.org>

Inquiries and information are always welcome.

Graphic Artists Guild

Contracts Committee

90 John Street, Suite 403

New York, NY 10038

212-791-3400

212-791-0333 (fax)

www.gag.org

(c) 1998 Graphic Artists Guild

Paul Basista, CAE

Executive Director

Graphic Artists Guild

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