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  • Writer's pictureLaura Lindenmann

Everything you need to know about intellectual property

 

What is intellectual property ?


A logo represents an artistic work that is subject to copyright. Consequently, it is up to the author to decide how this work of art may be used. Therefore, a permission agreement is created for customers that defines the specific terms of use.


These typically include

  • Type of use | Are you the only one authorized to use the logo?

  • Time of use | Are you authorized to use the logo for a limited or unlimited period of time?

  • Content usage | Where are you allowed to use your logo and on which media?

  • Local use | Can you use your logo worldwide?


 

What is the intellectual property for?


The intellectual property resolves ambiguities in dealing with artistic works. As a user, the right of use gives you clear instructions on how you may use the logo. The law also dictates that authors must be adequately remunerated for the use of their works.

In the case of unlawful use of an artistic work, the author can demand compensation and the prohibition of use. The remuneration agreement of the AGD (Alliance of German Designers) serves as a guideline for this. If the remuneration for intellectual property is not paid, the designer reserves the right to demand it at any time.


 

Difference between intellectual property and copyright


The copyright for your logo, i.e. the created work, always remains with the author and cannot be transferred - it is inalienable.


However, once the logo has been created, the designer allows the company the necessary rights of use so that the logo can be used for business purposes.

It is essential to clarify the intellectual property with the designer during the offer phase, as considerable costs can arise depending on the purpose for which the logo is intended.

 

Calculation of intellectual property


The calculation of a intellectual property is not based on an arbitrarily determined figure, but on the collective remuneration agreement of the AGD (Alliance of German Designers). The four factors of intellectual property are taken into account again: type of use, temporal use, content-related use and local use. These factors are given specific valuation factors depending on the extent of the desired use.

For example:


  • Type of use

As "Purpose-related, exclusive use" - valuation factor 1 or "Data processing right" valuation factor 3

  • Temporal use

As " Single use" - valuation factor 0.75 or "Continuous use" - valuation factor 1.5

  • Content usage

Such as "Print media only" - valuation factor 0 or "All media" - valuation factor 1.5.

  • Local use

Such as "Local" - valuation factor 0.5 or "Worldwide" - valuation factor 2



The intellectual property is calculated by multiplying the sum for the logo creation by the corresponding factors

intellectual property = logo creation costs x sum of the factors example:

  • "Sole use" | factor 1

  • "Continuous use" | factor 1.5

  • "On all media" | factor 1.5

  • "Worldwide" | factor 2





Intellectual property = 1790€ x 6 = 10.740€

In addition to the intellectual property costs, there is also the sum for the logo creation. This amount may seem high, but it corresponds to the appropriate fees according to the AGD (Professional Association of Designers) remuneration agreement.


Calculation example in comparison


How the intellectual property is calculated based on the factors


Intellectual property = sum of logo creation x sum of factors


"Sole use" "Continuous use" "On all media" "Worldwide" + factor 1 + factor 1.5 + factor 1.5 + factor 2


 

By the way


It is important to note that copyrights and rights of use are independent of trademark law! If a designer has granted a company the intellectual property for a logo, the company can register it as a trademark for commercial purposes. This can effectivly protect it from unauthorized use by other individuals or companies.


 

Conclusion

Copyright law may seem complex, but it's worth keeping in close contact with your designer so that they can answer any questions you may have. Clear communication promotes better understanding and helps to clarify the legal aspects of intellectual property.

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