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Horrible Client.. Need Graphic Designer advice in legal and moral opinions
#1
About 3 yeas ago I did some work for a company that my brother worked at. I gave them the family discount (which I should not have done in retrospect). I built a folder for them on the cheap. Everything went fine.

Then they needed a new logo. They hired another designer but his effort did not impress them. So they came to me again, I did this for cheap also but it was under the impression that I would be doing the other collateral materials. Needless to say they gave the work to the other designer after I gave them a logo. my bad.

Now my brother no longer works for the company and they need an address change to the folder and a reprint. I gave them the new quote at regular rates. Changes, de-archive, press check etc + the standard 20% mark up on printing. They think it is too high but the numbers are still cheaper than what they paid initially and would be way cheaper if I would have charge full rates.

Now they want me to give them the files so they can give it to another designer and shop the printing themselves. What should I do?

Legally I own the files and they own the final printed piece. How do I explain to them the full buyout process ($900) or should I just hand them over the files and be done with them. Keep in mind I will not be doing anymore work for them due to the way we parted the last time.
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#2
I've been down this road before. I'm also going through a similar process with an existing client.

First thing to do is check in with yourself and make sure there's nothing personal about it. (eg, make sure you're not out for any sort of revenge.)

Once you've done that and you're not coming from a place of revenge, ask yourself the impact of the possible actions. Are you devaluing the work of your profession by giving your work away? Is it professional to give your work away? Is your work not worth charging for?

I have one client who pays extra for full use licensing. I also provide them with template files so they can make stuff that looks like what I design, and on occasion I give them working files but only because they 1) paid for it and 2) asked for it ahead of time and I agreed.

Last year I solved this sort of issue. I spend several thousand dollars on new contracts. I took everything I have learned in the past 10+ years and hired a business/IP/contract attorney who is experienced in this area as well. Now I've got a bullet profit, even-sided, contract that handles all of this stuff from the start.

Hope that helps.
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#3
Where is the morality question here?

I would have jacked up the price higher, and stand firm.
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#4
Don't give it away. Sell them full usage rights if that's what they want.
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#5
Get ahold of M A V I C ' s contract attorney and talk it over with him?
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#6
Unless there's a contract that states they own everything, keep the files until you get adequately compensated. Explain to them they got a discount because of your brother working there. Unless they can be a source of more work via references or can somehow damage your reputation by word-of-mouth, just be civil and move on.
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#7
it sounds like you already gave them the logo?

in a perfect world clients would understand copyright and buyout and other things like that -- in the real world they do not

how much is your time fighting this worth?

give them a 200 dpi photoshop file (no vector art) of the logo and dont answer a call from them ever again

FWIW, this hasnt happened to me in the same way, but sort of -- i did logos for a client who was working for someone else. did the logo, did some collateral, did some followup logos -- got paid. then all the sudden i see the logos on TV and billboards...that i never did...she gave it to them...
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#8
With a logo I do give them full buyout rights. By nature, you cannot really keep the files of a logo away from the client. They have the vector, jpg, png and psd versions for their use from the start.

This is for a presentation folder.
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#9
I only release press-ready PDF files.

Tell them that's your policy as well.

If they want native files, they pay for them.

Professionally, I think each designer should take these opportunities to educate the general public about how the design industry works.

If all designers didi this when the issue came up, it would be well-known.

3P
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#10
The latest obstacle I have been running into is Art Buyers coming back later and asking for layered Photoshop files.

It takes a fair amount of tact in making Art Buyers understand they don't own every element used in a job, but it's up to you (or your rep) to keep the artists rights in mind.

The agencies I deal with won't really accept an artist contract up front, but the basic usage/buyout/ownership need to be written in the P.O.
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