Who owns source files?

When I was on the client side and hiring creatives and agencies, I remember feeling a bit violated when creatives and agencies that we’d work with wouldn’t provide us with source files. It felt a bit trapping that I wouldn't be able to make infinite changes and modifications to the finalized designs. The exact conversation in my head went something like, “We are paying the creative / agency for a service and they are only providing a finished product, not the editable version.” That very conversion begs the question…what service or product would you ever be happy paying for that isn’t a final product? Likely, not very many if any. So why would creative services be any different? The truth is, it isn’t.

First of all…what the f*ck are source files? We’ll get into the weeds on this below but simply put, source files are the editable versions of a creative project. Clients often believe they have a right to source files because it’s, “their brand” that the files or creative was made for but the reality is that source files rest under copyright law. In most cases (unless there is an additional agreement and or you pay extra for source files) the owner of source files is the creative or agency, NOT the company or brand that paid for them. This can feel unsettling when you first learn of it but this blog is meant to settle any unsettled thoughts and feelings about the whole source situation.

One thing to note is that most creatives and agencies do offer source files but you’ll just have to pay extra for them. Seems reasonable right? You get what you pay for after all. So here’s the whole breakdown of what a source file is, who actually owns it and why source files are different from the final deliverables.

What are source files?

Source files are the editable files of a creative project whether it’s graphic designs, layouts, code or any other editable creative files that are used to create the final product. These files are important because they allow you to make changes to your product without having to start from scratch.

Who owns source files?

The ownership of source files depends on the terms of the agreement between a client and the creative or agency. In most cases, the client owns the final product while the creative or agency retains the copyright to the source files. This means that the client can use the final product for its intended use but they cannot make changes to the source files without the permission of the creative or agency.

I can almost feel your chest tightening and your airways restricting. I know this because I used to be in your shoes. Before I owned an agency, I was in your shoes hiring creatives and agencies and I’d get so worked up and almost offended at the thought that the creative or agency would own the editable version of whatever project we were commissioning them to do. I also remember feeling like these creatives and agencies were forcing us to use them in the future by doing this. This really isn’t the case and to illustrate this, let's think of the last time you bought a piece of art. Did you purchase the paint, the canvas, the brushes, or even the years of learning and education that the artist went through to be able to produce that specific piece of art? No, of course not. You purchased a finalized work of art. The artist gets to keep their brushes, their paint, the pencils, and any working sketches of the finalized piece of art. This is the same concept when you work with a creative or agency. They own the source files and you own the finalized product and are free to use it for its intended purpose.

Simply put, the person who creates a thing owns that thing unless there is another agreement that was made prior to creating the thing. This is how copyright law works in this area. There are some exceptions such as if you were to hire a person full time or again if there was another agreement made prior to the work being done. But that’s about it.

It’s not personal, it’s not our opinion, it’s not even because we want to do this…it’s just the copyright law.

Creative & Source Files - Two separate line items

Ok, now that you have the full picture, let's suppose you still really want to own those source files. Some creatives and agencies will offer up source files but they are two separate line items. Meaning, if you purchase the finalized files and the source files are two separate items.

For us, we are happy to provide source files but they will be a multiple of whatever the scope of the project is.

In the beginning of a project, we clarify with our clients how much source files will cost. This is typically a percentage of the finalized product. For instance, if you were to engage us to develop packaging design that we charge $10,000 for and if we had determined that source files would be 100% of the project total, the source files would be $10,000.

The reason for this is that we are no longer needed in the design process. Meaning, if a client wants to own the source files, it’s likely that we will not be the designers for them in the future i.e. we’re cut out of any future work. So you can have the source files, but you’ll just need to pay for them. This isn’t to lock you into working with us, but rather this is simply getting what you are paying for.

The first contracted amount is for the initial design, the purchasing of the source files is for the ability to change the design. That is why they are two separate line items on an invoice.

Why don't you provide source files automatically?

For us, we aren’t trying to be all things to all people, but we do need to ensure that we are protecting our people, our interests as well as being honest and open with our clients. If we were to, by default, include source files into the deliverables, our total project fees would have to be 100%+ and that isn’t always needed for the client nor is it budget friendly to them either.

Additionally, when we share source files, we are sharing trade secrets. What we produce for clients is just as important as how we produce what we produce and when we share our source files we are sharing some of our intellectual property. To summarize, if we are giving you something of value, you’re going to have to pay for it.