The implications of using an image-based logo
Use original artwork to achieve full ownership AND piece of mind

The logo your company uses is key to your brand.  It should be distinctive and reflective of your company, separating it from your competitors.
 
When establishing a company logo that includes an image, there are a number of things of which you should be aware. Why the big buzz? Recently companies have started recieving copyright infringement notices and large fines. We have second-hand knowledge that two small businesses (not CDR clients) received fines within the last three months. One for $2,000 and another for $5,000!  And they are just the tip of the iceburg. That's a big bite out of anyone's budget.  Don't let this happen to you.

Copyright, copyright, copyright! - By law, the photographer owns the rights on any photos taken with the following exceptions:

o   If the photographer is an employee of the company for which the photos are taken or an employee of a company contracted to take the photos, the company the photographer works for will retain the copyright.

o   If an agreement exists that assigns copyright to a different party.

Because rights remain with the photographer, reproduction without permission will be an infringement of the copyright.

Using Another's Work- For any work that is copyrighted, please obtain permission from the owner before using that work.  The owner is not obligated to allow others to use the image.

Costs for Image Usage - Stock subscription services such as Photos.com charge yearly rates ranging from $450 - $1,500 for access to royalty-free images.

Charges per image for stock image bureaus such as Getty and Corbis fall anywhere from $10 for web use to $500 for high resolution.  For rights-managed photos, fees vary based on several factors such as: licensing selected (individual or multi-use), advertising, web, marketing, publishing / editorial, film / video, internal / external, retail product / packaging, size on page, number of copies printed, territory / country used, date, and duration of use as well as the industry the image will be promoting.

Charges for the use of a professional photographer will depend on the assignment type and length.  Photographers can charge anywhere from $500 to $5,000 per assignment. However, some elite photographers will charge up to $10,000 per assignment.

Image Redesign - While this is generally acceptable, there are some exceptions. Some photographers do not want their image reworked due to possible misrepresentation of their quality and skill. In addition, a graphic designer could run the risk of editing or removing an essential part of the image. 

Fines for Copyright Infringement - Damages can include lost profits.  Statutory damages can range from $250 to $150,000 for each infringing copy, possibly even higher if the infringement was determined to be willful as determined by the court.  In addition, there is the possibility of criminal liability if the work was copied for profit or financial gain, or if it has a value of more than $1,000.  Penalties can include a jail sentence of one year plus fines.  If the work is valued at more than $2,500, violators may serve five years plus fines.

Considering the potential pitfalls in using images for your logo, we encourage you to use a graphic designer to help you develop a logo that is unique and sets you apart in your industry.  For help in creating a logo that will be an important part of establishing your own brand, please contact us at Creative Design Resources, Inc. at (817) 691-5490.

Online Resources:
US Copyright Office - http://www.copyright.gov/ and Copyright Law of the US - http://www.copyright.gov/title17/

Copyright Witness - Photography and copyright - http://www.copyrightwitness.com/protect/p16_photography_copyright
Copyright Myths - http://www.copylaw.com/new_articles/copy_myths.html and http://www.thecopyrightsite.org/myths/index.html
Copyright Central - http://www.copyright.com/viewPage.do?pageCode=cr10-n

Picture Archive Council of America - http://www.pacaoffice.org/
American Society of Media Photographers - http://asmp.org/
Association For The Protection of Internet Copyright - http://a-w.org/
PhotoSecrets - http://www.photosecrets.com/