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Transitioning Out an Old Relationship

We have just lost a major client with whom we had a longstanding retainer-based relationship over several years. They gave us 3 weeks notice. They are now asking us for a great deal of information - all our media contacts, specs for publications and copies of all the ads done recently.

Can I ask everyone what their opinion is of this? So far, we have supplied most of the information regarding the first two points. It is a small industry that we cater to, they were a good client, there is a lot of goodwill present that I intend to keep. However, I feel that the last request is one that we should be charging for? Does an about to be ex-client 'own' the copies of the ads that we created for them over the last two years?

Thanks so much for your input

Natalie Gerngross

Any art files created for a client that have been paid for are the property of the client. We would burn a cd of their files for them at no charge. The stock photography should be indicated since future use requires a fee to be paid.

This is set up in our contracts. When clients leave without getting a cd of their artwork you may be bothered with requests for files, artwork, etc. at times when you have little time to respond. If you give it to them all at once it is a clean break for everyone. (And future frustration avoided).

Ann Adams

We position ourselves this way:

They own the concept unless we specify as addendum to terms and conditions that they don't.

I presume you have reviewed anything the client may have signed regarding your relationship. 3 weeks notice after 3 years is not enough.

Roxanne Cowan

No matter how great a job you do for a client å sometimes they just want a change. We always give clients everything they ask for when an account is terminated and we do it with all the grace we can muster. The media contacts and pub specs they can get easily (the pubs and media are probably knocking on their door directly anyway). Also, we know that this client is likely going to show everything that we provide to the new agency and we prefer to give no opportunity for any negative commentary from anyone å afterall, the old saying Ìwhat goes around comes aroundñ is very true in our business. We have had lots of clients come back after experiencing the competition! We charge $25 on all jobs as an archiving fee so when a client asks for copies of ads etc, we can supply them with copies on a CD and know that we¹ve already charged for this service. Of course it helps if all the files are neatly archived in the first place :-).

Good luck Elizabeth Love CSG Inc

I have encountered this "request" before. Unless you had specifically agreed in advance to provide archived materials (finished projects) at no charge, you are not obligated to send any of the materials - let alone at no cost to this ex-client - remember the creative rights rest with the creator - automatically - unless agreed upon in advance, and in writing.

There has been times however, where we wanted to retain good will (or recover money owed to us), and complied with this request. In this case we will always charge for "unarchiving". The fee covers our time to copy files, gather, organize and ship the materials. This is a common practice, is totally fair, and any pre-press company or printer routinely charges for this.

In any event, be sure you have been paid all your outstanding invoices before granting their request.

Joseph Notovitz Notovitz Communications

Our policy states that, once we've been paid in full, our clients own the work we've done for them -- subject to royalty agreements, if any, for photos and illustrations purchased on their behalf. We charge a reasonable hourly rate for gathering files and preparing information for account transitions.

Russ Norwood 2g Marketing

Our vendors charge us whenever we ask for file retrieval.

So, we always charge our clients when they are requesting files that have been archived (not open jobs). We charge them for the time it takes to find the file, the media it is sent on and a small fee for storage of the files.

We have done this with a client or two, always trying to keep a good relationship. We have had former clients return to us after they see that the grass was not really greener on the other side....

mindy mcCain Miller Brooks, Inc.

No, the client does not own the creative rights to the ads you created. YOU OWN THOSE RIGHTS. You should be charging them a buyout fee or a re-use fee of your creative. If they rerun those ads without your permission, they could be violating your creative rights. I would speak to a copyright/patent type of attorney. We have consulted one in the past with similar situations and have been able to recoup costs our ex-clients have previously been unwilling to pay.

Good Luck!

Carol Stano Controller Drone & Mueller and Associates

with us, yes the client "owns" the ad's and materials they paid for. However, if time is involved to pull and deliver all this stuff, we would charge the time for it. I don't feel it necessary to give all our media contacts or spec's for pub's, however if you want to keep goodwill.... And I would probably try to keep the last of the requested ad's until all bills/retainers are paid in full. It's the last leverage you will have if needed.

Shelly Constantz

Technically, yes - the client owns the advertising. If they want digital files of all the work, I would definitely charge for that time. Hope that helps.

Carolyn Lorence

I was wondering how other agency's handle the following situation.

A client requests the artwork and files for an ad/website/etc. that was designed by the agency. Do you hand them over for no charge or offer a buyout?

Let me know if you need additional information.

Thank you-

Dave Winslow SHAR|k Communications

We have been struggling with this issue a lot lately; currently, we don't charge a buyout. We do charge for the time it takes to located the files and save to disk, etc. We also make the client sign a "Transfer of Responsibility" form so they don't come back to us if there is a problem with the disk.

Catherine Colangelo The Phillips Agency

My understanding was that the client owned the work legally once they had paid for it, and that charging a disk fee was all that you could do.

Natalie Gerngross

Legally, if you are acting as an Independent Contractor to your client, you own the work.

Joey Pless

We also hand over artwork once the job has been paid in full. If they receive it immediately after the job is finished we do not charge any additional fees. Only the materials on disc fee ($25.00). If they want it months later we would charge account service time to unarchive the files plus the materials on disc fee.

Kristi Tiber