Logos are a unique way of describing your business’s identity.
It is very important for a business to have a definite logo for itself. A simple logo helps in inferring the nature of the operations of a business. Often businesses consult graphic designers –freelancers or companies –to have a logo made for them. The dealing is simple. The business –or client –pays for the services of graphic designers and the designers in return hand over a unique logo to them.
So, is a logo an intellectual property of the designer or does a business have full rights on it?
Consider the following example to understand why having full rights on the logo is essential. Suppose you’re in a business of clothing. You get your clothes from a designer who makes a dress item tailored to your specifications. The dress item is then made available to sale and any walk-in customer can purchase it. Suppose, one day your supplier ask you to share your profits with him as the dress you’re selling is his design. Will you agree with the arrangement? The answer is absolute no and that is why the following will explain why it is important to have the ownership of the logo you’ve got designed from a designer.
There is no denying that primarily logo is property of a designer however when a business explicitly enters into a contract with the designer, the logo becomes its property. The business is a legal owner of the logo and it can make the most of it. The ownership provides a lot of benefit to the business. First, it can restrict the designer to reproduce the design for any other business. Since a logo is your distinct identity, you will never want any other business to carry same design for their operations. By restricting the reproduction of the design, you have a complete legal right on the logo design.
Often designers follow suit of holding partial ownership of the logo.
This is also not entirely wrong. The terms of the contract however needs to be cleared to both parties. The most important aspect of this arrangement is to determine how much importance the logo holds in the business. This is fairly decent arrangement and suits both parties equally. However, it is better to keep sharing terms exclusive and not conditional.
The finest advantage of having the copyright of the logo is that the business can easily get itself registered from a registered office which deals in Intellectual Property Rights. This gives the business complete liberty to use the logo in any manner it pleases.
All in all, if the designer gives right to the business/client –maybe on complete payment of the project, it gives the business rights to use the logo in any manner it pleases. Without copyright, it is likely that the designer might confront the business for using its (designer’s) intellectual property. At present, designers and businesses have unanimously decided that the best way to go about it is to draft a clear and transparent agreement.
You can also find other relevant information on designmantic.com