What about the copyright? Rights of use?
We always separate letter of agreement (bid, offer, contract, invoice) in two parts. First part are the costs of the work that we account in hours. And the second part are the rights of use.
We differentiate between a exclusivity of rights, duration of rights, the geographical definition of the rights, and a number of applications to be used. The cost of rights is calculated with the help of quotients.
Calculation of rights
We calculate the costs of the rights with quotients. Quotients are summed up and multiplied with the work done.
Coverage of the rights
The coverage of the rights is divided further into a exclusivity of rights, duration of rights, geographical definition of the rights, and a number of applications.
Exclusivity of rights
We differentiate between design exclusively for the client or we reserve the right to sell our solution to the third parties. The ratio is 0.2 for the basic rights and for the exclusive rights the quotient is 0.5.
Duration of rights
For submitting designs that the customer wishes to use one year after the transfer, the ratio is 0.06.
For each year up to five years, the quotient of 0.06 is added. For the period of six to a maximum of ten years, the quotient 0.05 for each individual year is added.
A year is the smallest unit for the duration of copyright. After the period of ten or more years, we give our rights of use free away.
Geographical definition of the rights
For local use of rights within a country, for example Germany or Slovenia, the ratio is 0.4. But if you operate mainly at the local city level the ratio is only 0.1.
The ratio for the use of rights in several countries or for multiple language areas is 0.06 for each country abroad and up to five countries. For six to ten countries this quotient for each country is 0.05.
For the whole European Union, a uniform quotient of 1.2 is being added. For countries outside the EU, or for your global rights we add the ratio of 2.5.
Number of applications
The definition of the rights in respect of the number of applications starts with one application, where there is no extra quotient.
For two to three applications the joint ratio is 0.2. For three to six applications the joint ratio is 0.4. For seven to ten applications the quotient is 0.6. For ten or more applications the joint ration is 0.7.
About the nature and value of the copyrights, you are always informed upfront.