Author Topic: How much do nonexclusives get for 100 credit purchase? (Read 5727 times)

Pixart · « **on:** February 17, 2010, 14:08 »

I had an EL sale at Istock on the 7th. I received $1.14 for it. When I click through, it states that the customer paid 100 credits. Am I reading something wrong? A couple days before that I received $38 for a different EL at Istock, it was more credits but still less than 150 credits I think.

$1.14 cannot be right for a 100 credit purchase, can it? Please tell me there is some kind of mistake and we are not being screwed by some fine print.

Rob Sylvan · « **Reply #1 on:** February 17, 2010, 14:35 »

Sounds like that was from a legal guarantee purchase, which only results in a regular royalty.

Pixart · « **Reply #2 on:** February 17, 2010, 14:46 »

Rob, I think you may be correct. Thanks for pointing this out. Sheesh, why does Istock even put it under our EL tab?

Doesn't it blow your mind that they pay a couple of bucks for a photo but then pay:

This extended license, totalling $100.00, is for file #3836086, “Naughty Puppy”.

Why would you want a legal guarantee for a photo of a dog? I could see getting it for a car, or an electronic device...

cathyslife · « **Reply #3 on:** February 17, 2010, 14:47 »

The link you provide, Rob, mentions nothing about how commissions for ELs revert to standard royalties with the Legal Guarantee. Your link only talks about how every file has a Legal Guarantee or an Extended Legal Guarantee. Can you point me to the Contributor Agreement or whichever document states that we only get paid a standard royalty on ELs if a Legal Guarantee is purchased? I must have missed that big time.

Pixart · « **Reply #4 on:** February 17, 2010, 14:53 »

When I clicked through the sale I see this, (I'll bold the line) so it looks like Rob is right.

Extended License: Request Options For Naughty Puppy
•Extended Legal Guarantee covers up to $250,000 (100.00 credits)For a total of 100 credits
View the Extended License Agreement for this file purchase here.

I would really rather not know they are making this $100 bucks off me when I make a measly $1.14. I wonder what the purchaser intends to do that is so risky?

MichaelJay · « **Reply #5 on:** February 17, 2010, 14:55 »

Quote from: cclapper on February 17, 2010, 14:47

Can you point me to the Contributor Agreement or whichever document states that we only get paid a standard royalty on ELs if a Legal Guarantee is purchased? I must have missed that big time.

From the Legal Guarantee FAQ when it was announced:

Quote

Do artists receive revenue from the purchase of an Extended Media Guarantee?

The Legal Guarantee and the Extended Legal Guarantee both offer iStockphoto clients peace of mind that many of our competitors simply cannot offer. These guarantees attract more clients because iStockphoto is taking the risk of defending the content we are so proud of and legally confident in. Since the risk to protect our clients belongs to iStockphoto alone, the revenue from the Extended Legal Guarantee goes only to iStockphoto.

cathyslife · « **Reply #6 on:** February 17, 2010, 15:00 »

Thanks Michael. That only says that the revenue from the Extended Legal Guarantee goes to IS. Where does it say that the contributor only receives standard royalty from the sale of the EL?

In other words, I would expect Pixart to NOT receive anything above the standard EL commission for the guarantee, but from what I understand, she didn't even receive the standard EL commission.

edit: Or are you saying that as soon as a client requests a Legal Guarantee, that is no longer considered an EL and is only sold then as regular old download? If so, what Pixart asked makes sense...why list in the EL column? Kind of confusing.

MichaelJay · « **Reply #7 on:** February 17, 2010, 15:45 »

Quote from: cclapper on February 17, 2010, 15:00

Thanks Michael. That only says that the revenue from the Extended Legal Guarantee goes to IS. Where does it say that the contributor only receives standard royalty from the sale of the EL?

In other words, I would expect Pixart to NOT receive anything above the standard EL commission for the guarantee, but from what I understand, she didn't even receive the standard EL commission.

edit: Or are you saying that as soon as a client requests a Legal Guarantee, that is no longer considered an EL and is only sold then as regular old download? If so, what Pixart asked makes sense...why list in the EL column? Kind of confusing.

No, there was no other EL in this case. Legal Guarantee is one type of EL. It's not like an EL for unlimited print run. If a customer buys Legal Guarantee plus another Extended License, you will get the usual royalties for the other EL but not for the Legal Guarantee part.

It's just a bit confusing because it's technically treated as an EL and as such shows as EL income but you only get the royalty for the file size as you would get without the Legal Guarantee.

Sean Locke Photography · « **Reply #8 on:** February 17, 2010, 15:45 »

The contributor gets no royalty from any sales of legal guarantees. They just get the royalty for the purchase size of the image.

Oddly enough, I don't see details on EL license royalties anywhere, including the rate card appendix:
http://www.istockphoto.com/rate_schedule.php

A forum post should not be the place to put legal information like that.

cathyslife · « **Reply #9 on:** February 17, 2010, 15:52 »

Quote

A forum post should not be the place to put legal information like that.

No, the proper place for it to be would be under Legal on the IS site, or the Rate Schedule you linked to, or under the Legal Guarantee or Extended Legal Guarantee FAQ. Yet I am not finding any mention of Legal Guarantees and EL commissions. In fact I don't see any post regarding Legal Guarantees and how they impact EL or any commissions or royalties anywhere. Nowhere does it mention that a Legal Guarantee is considered an EL and will show up as such.

The OP says the customer bought an EL. So if I understand correctly, they bought whatever regular size image, then added the Legal Guarantee, which is called an EL so it shows up in the EL column, even though it was only an image bought with the Legal Guarantee. Confusing, yes.

BaldricksTrousers · « **Reply #10 on:** February 17, 2010, 16:50 »

It shouldn't be called an extended licence, because it is nothing to do with licensing. It should be called an insurance premium, as that is what it is, and not appear in our accounts at all.

Rob Sylvan · « **Reply #11 on:** February 17, 2010, 17:09 »

Quote from: cclapper on February 17, 2010, 15:52

The OP says the customer bought an EL. So if I understand correctly, they bought whatever regular size image, then added the Legal Guarantee, which is called an EL so it shows up in the EL column, even though it was only an image bought with the Legal Guarantee. Confusing, yes.

Correct.

Rob Sylvan · « **Reply #12 on:** February 17, 2010, 17:13 »

Quote from: Pixart on February 17, 2010, 14:46

Rob, I think you may be correct. Thanks for pointing this out. Sheesh, why does Istock even put it under our EL tab?

The function to buy an additional option for any given file was simply made possible through the existing EL functionality. So, it registers as an EL despite no additional royalty. Some contributors have expressed that it is nice/interesting to know when this option is purchased, but others would rather not even know. I would prefer it was done differently, but alas that has not come to pass.

I do understand why you would be confused. Sorry about that.

cathyslife · « **Reply #13 on:** February 17, 2010, 18:17 »

Thanks for clearing up the confusion.

Pixart · « **Reply #14 on:** February 18, 2010, 13:19 »

Hehe I submitted a ticket before Rob filled us all in, I really expected it to take a couple weeks but they replied the same day. (I felt a little silly when they explained how they bear all the risk, etc.).

But, I'm hoping no matter how successful you are you still get a little excited when you see the term "Extended License Sale". I thought "$1.14! Who do you think you are, Fotolia?"

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Author Topic: How much do nonexclusives get for 100 credit purchase? (Read 5727 times)

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Rob Sylvan

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MichaelJay

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