I have done some web banner ads for a client. The client chooses an image on SS, then I purchase the images and download them using my own account, not the clients. Since all sizes cost the same, I get a large, but the banners are built at 72ppi for web, so the image is sized accordingly. The ads are built in Photoshop, then a jpg supplied to the client.

The client is now asking for me to send her all the images I have purchased. I believe them to be licensed in my name, therefore giving them to someone else (even though the client paid for them, in a fashion,  in my fee to her for the cost of building the banner ads), seems like a copyright violation. I found this in the SS TOS that apply:

23.  "Non-transferable" as used herein means that except as specifically provided in these TOS, you may not sell, rent, load, give, sublicense, or otherwise transfer to anyone, an Image or the right to use an Image. You may however, make a one-time transfer of Images to a third party for the sole purpose of causing such third party to print and/or manufacture your goods incorporating Images subject to the terms and conditions herein. In addition, the work you produce with the Image must be used for yourself, your direct employer, client, or customer, who must be the end user of your work. You agree to take all commercially reasonable steps to prevent third parties from duplicating any Image. If you become aware of any unauthorized duplication of any Shutterstock Image(s) please notify us via email at support@shutterstock.com.

24.  If you plan on using or do use Images as part of work for a client or customer, you must keep accurate and detailed records of the use of each Image. These records must include the name of the client or customer, the Shutterstock Image number as well as the date or dates on which the Images were used. You shall deliver copies of such records to Shutterstock at Shutterstock's request.

I don't have an issue giving them to her as long as it is not a conflict of the TOS. I am a little uncertain what I should provide her. I can give her all of the .psds, which include the image as it was used for her job, i.e. low resolution and cropped, or would providing her with the original fall under 24. I could use some help in clarifying. I can also email SS directly, just thought I would get some educated opinions here first. Thanks in advance.
   

You must explain your client that she paid for the banner you designed not for the images in the banner.   She can't get those original images directly from you.

+ Yep .  I think 24 is there to stop you from "stockpiling".

Just as a followup...

I emailed my client this morning explaining how the licensing works and a solution, and she immediately got on the phone with Shutterstock. Here is what they told her:

I just got off a call with Shutterstock and, while they said that it's true that you own that license and the rights, that it's up to us and our agreement on whether I should have the images. So yes, you are right about the TOS but they said that it's tricky because I paid for them and in essence, our agreement could be to transfer them to me.

In my opinion, it's unfair for me not to have these images since I am the one that paid for them. Obviously my understanding was/is that I own these images based on my past experiences. I know for the future to purchase them on my own account.

You have the images so, as Shutterstock told me, it's up to you if you want to release them. If you really don't want to release them to me, then I can't do anything about it.

Apparently, she has dealt with other vendors who were more than happy to disregard Terms of Service and copyrights, and provided her with the images. I emailed shutterstock support to get it verified in writing, and here is what I wrote and their reply:

Hello Cathleen,

Thank you for contacting Shutterstock.

As the terms of service of Shutterstock, you may not share the files licensed under your name with a third party. If your client wants the files you used to create the design, he/she will have to create and account with Shutterstock and download the images under his/her account, this way the image will be licensed under his/her name for usage.

The terms of service are on the link below for your client's reference:
http://www.shutterstock.com/licensing.mhtml

Please contact us if you have any further questions or concerns

All the best,

Marcela Nascimento

Shutterstock Support
Shutterstock

--------------- Original Message ---------------
From: Cathleen Clapper
Sent: 12/29/2014 10:17 AM
To: support@shutterstock.com
Subject: Shutterstock Support Email [cclapper]

I was hired by a client to build web banners for her company. I purchased a
shutterstock image, using my account. I then cropped and resized that image
and placed it into a .psd file. I created a .jpg for the client to use on the
web. I have given the client both the .psd and .jpg files, but the client
wants me to send her all of the original shutterstock high resolution image
files I purchased. I believe that would be in conflict with your Terms of
Service. Can you please verify whether or not I can give the original
shutterstock files to my client? Thanks.

So rest assured, Shutterstock is backing up the Terms of Service. Since I had no other agreement with the client except to provide her with banner artwork, I don't feel as though I should violate the terms and the photographers' copyrights and send them to her. I have emailed her, explaining that I am not withholding them out of spite, but merely respecting copyrights and terms. I will lose this client, but I was kind of hoping for that anyway. I always lose money on her jobs. 

She neither paid for them ( she paid you for end results ) nor agreed to the CLA, so, see ya!

Now, I believe if she bought them, she can give them to you to use in her project, but that's all the rights you have to them.

I have received 2 subsequent emails from her, where she emphasizes that she paid for them, and one of them mentions "principles."

I also received another email from another person at SS support also backing me up.

See ya...that's exactly how I feel. I don't think I will hear any more from her. I'm sorry to lose a client, but I also am not going to contribute to the ignorance of people giving away stock photos or rip photographers off to save an unethical client.

As far as if she bought them...yes, you are correct. I can only use the image for HER project, not for anything else. I even mentioned that exact thing to her.