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How much should I sell the IP and source files....

Submitted by LDM on

Hi,
I dont post much in here, but I still hope you can help me.
I have posted this in General and Job Discussion, because its kind of releated to both.
My friend works at a IT company. As a side project he got me to redesign his companys logo in 3D. I have since had a meeting with the buisness's directors (total company is 10 people, they make data bases and network programs) and they mentioned they would buy the full IP from me, includeing all the source files. They need to do this, as they will copyright the image as their logo.
I have already figured out my hourly rates, and render time rates, and at the risk of sounding either a) a gold digger, or b) a newb that doens't know anything about real work, I am charging $50 an hour for work, and $10 an hour for render time.
So far they owe me $510 bucks for work and render time.
How much should I sell the IP and source files for? Considering once its theirs, thats the end of what they need me for. Anyone else been in a similer posistion?
(At this moment I would rather keep the company and what I have done confidential)

Edit: At the moment, work comes to $510, so at the moment, I was going to round it off to an even $900, thoughts?

Submitted by Johnn on Wed, 12/07/06 - 3:20 AM Permalink

When you say you 'redesign his companys logo in 3D' I assume that the logo itself hasn't been redesigned- ie you have created a 3d interpretation of their 2d logo? in this case I suspect you have no, or little, ownership of IP, and technically may have encroached on another designers IP by using the 2d logo as a base for your redesign (I'm no lawyer, and copyright laws regarding design IP can be complicated so I could be wrong).

As for the source files, my understanding is (and I might remind you that I am no Lawyer) they are your property, and unless specified during the initial projects brief, a distinctly seperate piece of property to files delivered as part of you project, and also to copyright of the design! So the company could pay you to redo their logo for a website, then pay you for ownership of the copyright(if it exists and belongs to you...can be a very tricky gray area), allowing them to use that logo in any way they wish and then they have to pay you again for the working files! ...so whatever you end up charging, it is proabably worth breaking the costs down to indicate that all of these components are being purchaced - this will help justify to the client what you are charging.

Don't really know what 3d models are worth so I will let someone else offer suggestions on the pricing.

Submitted by groovyone on Sat, 22/07/06 - 5:29 PM Permalink

As with anything when selling IP to someone and relinquishing copyright. You need to figure out
1. Where is the company going
2. What are they going to do with the source files
3. What impact is that on loss of future work for you based on that IP.
4. What size is the company (financially) - ie how much can they afford
5. How desperately do they want it (can be indication of it's intended use).

Posted by LDM on

Hi,
I dont post much in here, but I still hope you can help me.
I have posted this in General and Job Discussion, because its kind of releated to both.
My friend works at a IT company. As a side project he got me to redesign his companys logo in 3D. I have since had a meeting with the buisness's directors (total company is 10 people, they make data bases and network programs) and they mentioned they would buy the full IP from me, includeing all the source files. They need to do this, as they will copyright the image as their logo.
I have already figured out my hourly rates, and render time rates, and at the risk of sounding either a) a gold digger, or b) a newb that doens't know anything about real work, I am charging $50 an hour for work, and $10 an hour for render time.
So far they owe me $510 bucks for work and render time.
How much should I sell the IP and source files for? Considering once its theirs, thats the end of what they need me for. Anyone else been in a similer posistion?
(At this moment I would rather keep the company and what I have done confidential)

Edit: At the moment, work comes to $510, so at the moment, I was going to round it off to an even $900, thoughts?


Submitted by Johnn on Wed, 12/07/06 - 3:20 AM Permalink

When you say you 'redesign his companys logo in 3D' I assume that the logo itself hasn't been redesigned- ie you have created a 3d interpretation of their 2d logo? in this case I suspect you have no, or little, ownership of IP, and technically may have encroached on another designers IP by using the 2d logo as a base for your redesign (I'm no lawyer, and copyright laws regarding design IP can be complicated so I could be wrong).

As for the source files, my understanding is (and I might remind you that I am no Lawyer) they are your property, and unless specified during the initial projects brief, a distinctly seperate piece of property to files delivered as part of you project, and also to copyright of the design! So the company could pay you to redo their logo for a website, then pay you for ownership of the copyright(if it exists and belongs to you...can be a very tricky gray area), allowing them to use that logo in any way they wish and then they have to pay you again for the working files! ...so whatever you end up charging, it is proabably worth breaking the costs down to indicate that all of these components are being purchaced - this will help justify to the client what you are charging.

Don't really know what 3d models are worth so I will let someone else offer suggestions on the pricing.

Submitted by groovyone on Sat, 22/07/06 - 5:29 PM Permalink

As with anything when selling IP to someone and relinquishing copyright. You need to figure out
1. Where is the company going
2. What are they going to do with the source files
3. What impact is that on loss of future work for you based on that IP.
4. What size is the company (financially) - ie how much can they afford
5. How desperately do they want it (can be indication of it's intended use).