Caira can review your contract in 3 clicks:

• Get suggested changes and comments added directly to your file

• Generate an email summary to send to the other party

It takes less than 30 seconds to sign up for a free trial. No credit card required: Start your free trial

Who Owns the Logo? The "Source File" Battle in Graphic Design

You are a graphic designer. You spend two weeks crafting the perfect brand identity.

The client loves it. They pay the £1,000 fee.

Then they email: "Can you just send over the layered Photoshop and Illustrator files? My nephew wants to make some changes."

You say: "Source files cost extra."

They say: "What?! I paid for the logo! I own it!"

This is the most common dispute in the creative industry. Clients think they bought the "factory." You know they only bought the "car."

Without a clear contract, this misunderstanding can lead to withheld payments, bad reviews, and legal threats.

Here is how to navigate the Intellectual Property (IP) minefield.

1. Copyright: Default vs. Assignment

The Scenario: You design a logo. No contract is signed. The client pays the invoice.

Who owns the copyright?

The Legal Reality:

YOU DO.

Under the Copyright, Designs and Patents Act 1988, the "Author" (Creator) is the first owner of the copyright, unless you are a permanent employee.

The client has an implied licence to use the logo for the intended purpose, but they do not technically own the underlying rights. They cannot stop you from using elements of it elsewhere, and they might not even have the right to modify it.

The Fix:

Define the Transfer in Your Terms.

The Economy Option (Licence Only): "Upon payment, the Client gets a perpetual, exclusive licence to use the final designs for their business. The Designer retains ownership."*

The Premium Option (Assignment): "Upon full payment of the final invoice, the Designer assigns full copyright in the Final Deliverables to the Client."*

(Pro Tip: Never assign copyright until after payment. It is your ultimate leverage).

2. The "Source File" Distinction

The Scenario: The client demands the .AI, .PSD, or .INDD files. They want to edit your work later to save money on hiring you again.

The Fix:

Deliverables Definition.

Your contract must clearly define what they are buying.

"Deliverables: Final PDF, JPEG, SVG, and PNG files."*

"Source Files (Working files): NOT included. These remain the intellectual property of the Designer. They may be purchased for an additional Release Fee of [X]% of the total project cost."*

Treat source files like the chef's secret recipe. You sell the meal, not the formula.

3. The "Font Licence" Trap

The Scenario: You use a premium font (e.g., "Circular" or "Helvetica Neue") in a brochure. You send the InDesign file to the client. The client opens it. It says "Missing Fonts." They ask you to email them the font file.

The Legal Reality:

This is Illegal.

You bought a licence to use the font on your computer (a "Desktop Licence"). You do not have the right to distribute that software to others. If you send it, you are breaching the font foundry's EULA (End User Licence Agreement).

The Fix:

The Font Disclaimer.

"The Client is responsible for purchasing their own licences for any commercial fonts used in their branding/materials for their own systems. The Designer cannot legally transfer font software."

4. "Unlimited Revisions" Hell

The Scenario: You offer "Unlimited Revisions" to close the deal.

The client is on Revision 42. "Can we make the blue a bit more... blue?"

You are losing money every time you click "Export."

The Fix:

Cap the Revisions.

"Includes 3 Rounds of Design Revisions. Additional revisions will be charged at the Designer's standard hourly rate of £[X]."

"Sign-Off: Once a design draft is approved via email, any subsequent changes are billable as new work."

5. Spec Work ("Just a Quick Sketch")

The Scenario: A prospect asks: "Can you just mock something up so we can see if we like your style?"

You do it. They say "No thanks."

Three months later, you see your "sketch" as their new logo, slightly tweaked by a cheaper designer.

The Fix:

The "Kill Fee" / IP Clause.

"All concepts and drafts created during the proposal/pitch phase remain the property of the Designer. If the project is cancelled or rejected, the Client has no right to use, copy, or replicate any of the presented concepts."

Why Contract Review is Your Creative Director

You want to design, not argue about file formats.

AI contract review acts as your "bad cop." It clearly defines "Deliverables" vs "Source Files." It protects your IP on Spec Work. It ensures that when you hand over the files, you are handing over value, not giving away your rights for free.

Disclaimer: The information in this article is for general guidance only and is not intended as professional legal, financial, tax, or medical advice.