Is It Better to License Artwork or Buy Full Copyright Ownership?
- Lisa
- Sep 29
- 8 min read
When you're looking at using artwork for your brand or products, it's important to know what's possible and what will help you achieve your business goals. You'll want to be clear on the question: Should you license artwork or buy full copyright outright?
If you've never licensed or bought artwork before, you may find the terms confusing and wonder exactly what the difference is and which might be best for you. And it can be hard to find answers, but I'm here to explain the pros and cons of each, what it really costs, and how to decide what's best for your business. By the time you're finished reading this article, you'll have a better idea of whether licensing or buying a copyright is best for you and your situation.
What Does It Mean to License Artwork?
Let's start with the definition of licensing. In the art world, licensing is permission to use art for a specific purpose, duration, and/or category. In essence, you're renting the artwork rather than buying it.
So what are the benefits and drawbacks of licensing artwork? Let's break it down:
Benefits of licensing artwork
Lower cost. Because you're not buying the copyright, the cost is lower. The artist still retains the rights, but you get to use the art for the length of time you negotiate.
Flexibility. During the negotiation, you can work with the artist to negotiate the right flexibility for your needs. Licensing contracts take into consideration duration (typically 1-3 years), industry or category (i.e. home decor, bolt fabric, wallpaper, stationery, etc.), territory (country specific or worldwide usage), and product categories (i.e. gift bags only vs. the whole gifting space). Cost will depend on the options you need to best fit your goals for your product and brand.
Quick access. Often licensed artwork is ready to go. Within days of the contract being finalized you can have artwork in hand and ready to use as stated in your contract. You won't have to wait for something to be made or go through revision stages, which is really great for you.
Drawbacks to licensing artwork
It's temporary. Licensing is renting essentially, but the duration of the license depends on a predetermined time limit. This can be great in a lot of instances, but if you find that a design is doing really well for you and your license is about to expire, it can be tricky. Often its possible to sign another licensing contract to extend your license, and some artists may even offer you the chance to buy the design, but you also run the risk of it not being available after the end of your contract if the artist doesn't want to renew.
Limited control. While the artwork is under contract, you have to abide by the terms of the contract you negotiate with the artist at the beginning of the contract. You will only be able to use that artwork on the specified products and within the terms laid out by the other factors in the contract. If you discover that an artwork is your best seller and you'd like to use it on an additional product, you may need to amend your contract for an additional fee or not have that control. You may also find limited control as to what you can do with the design. You likely won't be able to alter it without the artist's permission.
Possible overlap with other brands. Unless you buy the copyright, you run the risk of having the artwork appear elsewhere outside of your contract.
So let's say a stationery brand licenses an illustration for 1 year. The non-exclusive contract states that they can put the artwork on greeting cards to be sold in the USA for that 1 year duration.
They will not be able to put that artwork on gift bags during that time, nor can they sell their greeting cards internationally, and since the contract is non-exclusive, it might get picked up by another greeting card company or a wallpaper or fabric company. Anyone can still license that artwork, and the stationery brand will not be able to alter the artwork to make it more unique.
What Does It Mean to Buy Artwork Copyrights?
Now that we've defined licensing, let's define a copyright purchase (or sometimes called a buy-out). An artwork copyright is owned by the artist unless they sell it, so a copyright purchase is buying the full ownership of the design forever.
Benefits of buying artwork copyrights. When you buy the copyright, you have unlimited use, exclusivity, brand security.
Drawbacks to buying artwork copyrights. You'll incur higher upfront cost and less flexibility if your needs change in the future.
For example: a big home brand like Pottery Barn may want full exclusivity and to be able to control how the artwork is used. They want to ensure that they're the only ones with that artwork on their products.
Instead of trying to negotiate terms and hoping it doesn't end up on a product in another category or territory, they may choose to buy the artwork copyright. This will give them the full ownership of the copyright, and they can therefore change, alter, or use the artwork at their discretion. They also rest assured that no one else will be able to use that artwork without their consent keeping their brand unique and exclusive, which often feels luxurious and limited.
To License Artwork or Buy Full Copyright: Key Differences
One of the most helpful things when you are comparing options is to see them side by side. So I've put together this chart that compares the licensing vs. buying the copyright based on six different factors including ownership, exclusivity, cost range, flexibility, timeline and risk level. Each factor is something you'll want to consider in your decision.
The bottom row compares instances wherein each of these options may be your best fit. By putting together this chart, my aim is to help make your choice easier based on what your goals are for your product and business. Only you will know what's best, but this chart can help guide you as you weigh the options.
Factor | License Artwork | Buy Artwork Copyright |
Ownership | Temporary rights to use artwork for specific purposes | Full ownership of artwork forever |
Exclusivity | May be non-exclusive (others can use it) or exclusive for a limited time | 100% exclusive, no one else can use it |
Cost Range | $250–$2,000 depending on scope & duration | $1,000+ per design (one-time investment) |
Flexibility | Lower upfront cost, can test ideas, can renew or upgrade later | Permanent commitment—best for long-term or high-value products |
Timeline | Faster (art is already created, ready to license) | Slower (negotiations, larger upfront cost) |
Risk Level | Some risk of overlap if non-exclusive | No risk—art is fully yours |
Best For | Startups, product testing, businesses with smaller budgets | Established brands, long-term collections, companies protecting brand identity |
When Should You License vs. Buy?
The last row of the chart gives some instances where each option might make the most sense, but your business is as individual as you are, and so will your choice be. Licensing is like leasing a car—you get to use it for a time. Buying copyright is like owning it forever. Whether leasing or buying is right for you is a personal choice.
Let's walk through several examples that might help you see yourself and your business needs more clearly.
License if:
You’re testing a product idea. Maybe you have this idea that you really love but it's new to you and you don't know how it will be received. Before going all in on this product, you want to dip your toes in the water and see if it's viable. In this case, it makes sense to license artwork at a lower cost.
You’re on a tighter budget. Why buy the copyright when you can rent for a lower price. Especially if your budget is tight and you want to allocate resources to more artwork in the future.
You don’t need permanent exclusivity. Use it for the terms of your contract, then move on to new artwork.
Buy copyright if:
Your product is long-term/high-volume. If you're planning on selling that product for a long time, it makes sense to buy the copyright and protect your product exclusivity.
Brand protection is critical. If it's artwork that defines your brand, protect it with a copyright. You'll never regret owning something that makes you recognizable.
You need total creative control. You may want to manipulate the artwork files for different reasons, or you may want to have the freedom to use the same artwork on the packaging as well as the product itself. With a copyright, you can do whatever you want with it.
The Hidden Risks of Skipping Both
Okay, so now that we've covered both licensing and buying a copyright, you may be thinking, "But what if I just have AI make me something for free? Why wouldn't I just do that instead?" It's so tempting, especially when budgets are tight.
There are several reasons that's not a good choice for a brand, especially brands that want to build customer loyalty and a great reputation. Let's break down some of the risks.
No copyright protection. AI art cannot be copyrighted. Since it is generated from bits and pieces of information gathered from artwork that may be copyrighted, you cannot copyright it yourself. Copyrights in the US and other countries can only be obtained if a person made it.
No ownership. Even if you spend hours perfecting the right prompt and you get the perfect artwork for your brand, it's just not yours. Your competitors can come along and literally copy and paste that artwork on their product, and you have no legal recourse because it cannot belong to you. This could be devastating to your business.
Possible disputes. AI art is created by scraping the art that's out there and reusing the patterns and aesthetics it finds and recognizes. That means that it's learning from art made by real people, and often comes up with something that may resemble someone's copyrighted artwork. When that happens, you may find yourself in a legal dispute with the original artist who is just trying to be fairly compensated for their creative work. AI art definitely falls in the gray area, and may cast doubt on your ethics and values even if there's no legal action.
Brand reputation. Just this week, I picked up some grapes at the grocery store, and once I got them home we realized they had used AI art for their packaging and while most of the grapes were depicted as having two legs, one had three legs. It was so bad. We haven't stopped laughing about it since. And honestly, it turned me off as a consumer. It made me question their integrity, their processes, and their values as a brand. Is it really worth all that for AI art?
While there may be a time and a place for AI art, it isn't in your business where the stakes come with real consequences. The real choice isn’t between AI and licensed art, it’s between short-term use (licensing) and long-term ownership (buying the copyright).
So now that we've gone through all these definitions and scenarios, I hope you feel better equipped to make the decision that's best for your brand and product. When you consider your goals and how budget, timeline, and risk tolerance play into achieving them, you'll find the right decision for you.
