Can client resell the Logo? Please Help

[balic]

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Hello,

I stumbled upon a question that I never thought of previously and I couldn't find the answer anywhere on the web, including blogs and forums. I also red "Logo Design Love" book and was looking in "Prices and Ethical Guidlines" book but with no luck. So I would be very grateful if you find time to answer me.

The client asked me what rights will he receive once he pays for logo design project in full. I stated that :
- Once client has paid in full he will have the right to use the Logo design in all media useful for business promotion.
- Final payment ensures that ONLY the agreed logo design becomes the clients property.
- I reserve the right to show logo in my portfolio
- The client has no right to modify the logo in anyway except to change its size.
- The client has no right to resell the logo.

After that the client asked me:
"If in the future, I want to sell my website with the logo. Would the sale be a conflict of the contract as the contract states I cannot resell the logo?"

My opinion is that client has no right to resell the logo because that way businessman could easily make money on logo-designer's work. But I don't know how things work if the whole company is being sold? Should the new owner contact me, should I be payed something or just give the new owner the rights to use logo?
I am not that worried if the company gets sold. But what if there's no company, and the client has only web site. What if he sells the logo and web site quickly after I design them for him? How should I protect myself from possibly being used?

Should I state that logo can't be sold for next X years?

I hope you will have the answers.
Thank you very much for your time!

[D856C]

It's really for you to decide. If it's going with the business, not being resold within a collection or piecemeal, I'd allow it.

The logo is supposed to be part of the business. I would expect someone buying the business would be surprised if the logo didn't come along with it.

[marble_pars]

If you transfer the logo to the client as their property once paid for, then it if the clients property to sell.

[GraphicDesignDerby]

I'd agree, if they're pay the dollars for the design then once it's done and paid for, then they are free to do as they like.

You being able to use it for your own promotional purposes is a must, but once they have it, well it should be theirs.

Here's what I say...

REPRODUCTION OF WORK:
The client assumes full reproduction rights upon payment for completed project.
The designer retains personal rights to use the completed project and any preliminary designs for the purpose of design competitions, future publications on design, educational purposes and the marketing of the designer’s business. Where applicable the client will be given any necessary credit for usage of the project elements.


The last sentence backs up the idea that the client can't then take the logo and resell it as their own work, (say to an online template logo design service), without attributing it to you.

On your T&C's, I'd be put off by the following:

- The client has no right to modify the logo in anyway except to change its size.

[balic]

Thank you all for sharing your opinion, I really appreciate it!
I agree that logo is part of business and if business is sold, logo rights should simply be transfered to new owner.
I'm just a bit worried in case there is no company/corporation, just logo and web site. But the client sounds serious and professional so I think that won't be the case.

@GraphicDesignDerby - If I understood you correctly, you wouldn't agree to "- The client has no right to modify the logo in anyway except to change its size."
It's usual, common term for logo design. Client will be given Logo Usage Guidlines which describe which way the logo should properly be used. During the design process client can ask for revisions, but once he approves the final design, and pays in full, it has become company's new visual identity. It's in client's best interest not to change color, font, position of elements, thickness ... because it would devaluate and weaken the brand.
If in X years redesign is needed, client will contact me, and if he's not happy with my solution, he can hire someone else. But I take great care in designing logos that last, so hopefully redesign won't be needed.

Thank you for your thoughts!

[GraphicDesignDerby]

Balic,

You're correct of course. In the ideal world your logo would be spot on. But things change and quickly, so yes if the company needed a redesign, then they'd head to you hopefully.

But if they choose off their own backs (rightly or wrongly) to change, amend or alter the logo, then so be it, it's up to them.

As for identity guidelines, well they are just that, guidelines and if a rule needs to be broken... crikey my old co. used to tout a new ID folder every year for us to follow and, as a rule we did, but now and then, well we just had to break it.

[balic]

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Like I said I think it's in client's best interest not to modify logo on it's own, that's designers job. And I didn't make this term up. Many logo designers state the same.

Could you please explain: "Where applicable the client will be given any necessary credit for usage of the project elements. "
Did you mean that designer will be credited?

Thank you!