How to license art for packaging
Posted by Krzysztof Wielgos on October 20, 2026
To license art for packaging, agree in writing with the artist (the copyright owner) exactly what you can do with the artwork: which products, which countries, for how long, whether it's exclusive, how many units, and how you'll pay, as a flat fee or a royalty. In the UK, paying for artwork doesn't automatically make it yours. The UK IPO explains that a licence sets out what you may do with a work, while transferring copyright requires a written, signed assignment. Get those terms right and you can print with confidence.
I'm Krzysztof, founder of Art Licence Studio. This guide is for food and drink, cosmetics, and gift and homeware brands.
What you're actually buying
When you license artwork, the artist keeps the copyright and gives you permission to reproduce it in defined ways. The Association of Illustrators (AOI) calls this the licensing model: you pay for the use you need rather than buying the work outright. The UK IPO's licensing guide suggests starting from the assumption that a licensee may do very little unless the licence says so. Be specific.
There are three main types of licence (UK IPO):
- Exclusive: only you can use the artwork for the licensed purpose. The artist can't use it either.
- Sole: you and the artist can use it, but nobody else.
- Non-exclusive: the artist can license the same work to others.
Under the Copyright, Designs and Patents Act 1988, s.92, an exclusive licence must be in writing and signed by or on behalf of the copyright owner. A handshake isn't enough.
License existing art or commission something new?
| License existing artwork | Commission new artwork | |
|---|---|---|
| Speed | Fast: the work already exists | Slower: brief, roughs, revisions, final art |
| Fit | You adapt your design to the art | Built around your dieline, brand and copy space |
| Exclusivity | Check it hasn't already been licensed in your category | Easier to agree exclusivity from the start |
| Risk | You see exactly what you get | Depends on your brief and the roughs stage |
| Best for | Seasonal or limited runs, testing a range | Core brand packaging and long-running products |
The AOI's branding guide notes that brands wanting bespoke artwork sometimes ask for all rights, but an exclusive licence should usually be sufficient. If you insist on an assignment, the fee should reflect the value of those rights.
Have a product in mind? Post a brief on Art Licence Studio to get proposals from independent artists, or license ready-made work, with usage, territory, term and exclusivity written into the agreement.
Royalty or flat fee?
Flat fee: one payment for a defined licence. It's simple to budget, with no sales reporting. Many small brands find this easier to manage.
Royalty: a percentage of sales, sometimes on top of an upfront fee or advance. It costs less up front, but you'll need to report sales and pay on a schedule.
There's no free public UK benchmark specifically for packaging. The AOI's 2024 Pricing Survey has a Products and Packaging section, but it's for members only. The closest published UK reference points come from greeting cards and general art licensing:
| Source (year) | Deal type | Figure |
|---|---|---|
| Greeting Card Association, updated 2024 | Flat fee for outright ownership of one card design | £150–£250 |
| Greeting Card Association, updated 2024 | Licensing fee, set products and years | £150+ per design |
| Greeting Card Association, updated 2024 | Licence fee plus royalty (example) | £100+ plus 3% of trade price |
| Graphic Artists Guild (US), 2012 | Art licensing royalty | Usually 3–10%, generally on wholesale |
| Graphic Artists Guild (US), 2012 | Mass market vs specialty retail | 3–5% vs 5–10% |
Treat these as context, not a price list. The GCA itself calls its figures a rough guideline, and the Graphic Artists Guild figures are US and dated. Packaging is often a bigger commercial use than a single card design, so expect quotes to reflect that.
Territory, term, exclusivity and print runs
Territory
Say where the packaged product will be sold, not just where it's printed. If you ship from a UK site to EU or US customers, include those territories. The GCA notes that publishers increasingly ask for worldwide rights, and the AOI lists territory as one of the four things an artist needs before quoting.
Term
How long can you use the artwork? Packaging lives longer than a campaign: stock already printed keeps selling after a licence ends. Agree a sell-off period for packed stock, and agree what happens at renewal.
Exclusivity
Exclusivity can be narrow. "Exclusive for chocolate bars in the UK for three years" costs less than "exclusive, all products, worldwide, forever", and it still protects you from seeing your label on a competitor's shelf.
Print-run limits
Some licences cap units, especially non-exclusive or royalty-based ones. The Graphic Artists Guild advises artists to ask about the first production run and how often products are re-run. Expect to be asked the same, and agree what happens if you exceed the cap: an automatic top-up fee is cleaner than renegotiating mid-production.
What to put in writing: a licence terms checklist
| Term | What to specify |
|---|---|
| Parties | Your registered company name and number (UK IPO) and the artist's details |
| Artwork | Exact work(s), file versions, any agreed variations |
| Products / field of use | e.g. "labels and outer cartons for the 70cl gin range" |
| Media | Pack, point-of-sale, e-commerce images, social, ads |
| Territory | Countries where products are sold |
| Term | Start date, end date, renewal, sell-off period |
| Exclusivity | Exclusive, sole or non-exclusive, and in which category |
| Quantity | Units or print runs covered, and top-up terms |
| Changes | Cropping, recolouring, adding type, combining with your logo |
| Fee | Flat fee or royalty, the royalty base (trade or retail price), and payment dates |
| Sub-licensing | Can your printer, co-packer or retailer use it? |
| Credit | Whether and where the artist is credited |
| Moral rights | Whether any are waived (they can be waived but not assigned, per the UK IPO) |
For a deeper walk-through of licence types, see /learn/licence-types and /learn/which-licence-is-right. The UK IPO also publishes a skeleton licence showing typical clauses.
Worked example (illustrative)
This is a hypothetical example to show how scoping works. It isn't a quote or a market rate.
A small UK tea brand wants a ready-made watercolour of wild flowers for a limited Christmas tin. The buyer's brief:
- Use: tin wrap and the product page image, plus organic social posts
- Territory: UK only (no overseas shipping)
- Term: 12 months, with a 6-month sell-off for packed stock
- Exclusivity: exclusive for tea and infusions in the UK; the artist is free to license the work for, say, notebooks
- Quantity: one print run, with a pre-agreed top-up fee per additional run
- Changes: may crop and add the brand logo; no recolouring without approval
- Payment: flat fee, so there's no royalty reporting
Because the exclusivity is narrow and the term is short, the artist can price it as a limited licence rather than a buy-out, and the brand gets protection where it matters: on the tea shelf.
Common mistakes
- Assuming payment equals ownership. Without a written assignment, the artist keeps copyright (UK IPO).
- Relying on an "implied licence". The UK IPO says an implied licence can arise, but recommends recording any agreement.
- Licensing for "packaging" but using it everywhere. Ads, point-of-sale and e-commerce should be listed.
- Forgetting printed stock. No sell-off clause means stock on hand at the end of the term is a problem.
- Over-buying exclusivity. Worldwide, all-category exclusivity costs more and is often unnecessary.
- Editing without permission. Recolouring or altering artwork can raise moral rights issues. Agree changes up front.
FAQ
Do I need a written licence to use art on packaging?
For an exclusive licence, yes: UK law requires it to be in writing and signed by the copyright owner. For any licence, writing it down avoids disputes.
Should I pay a royalty or a flat fee?
Flat fees are simpler to budget and need no sales reporting. Royalties lower upfront cost but require reporting. Published royalty ranges for art licensing are usually 3–10% of wholesale (US, 2012).
Can I buy the copyright outright?
Yes, if the artist agrees, by a written, signed assignment. Expect to pay more. The AOI notes that an exclusive licence is usually enough for brands.
Is it cheaper to license existing art than to commission?
Often, because the work already exists and you're not paying for development. But you'll need to check it isn't already licensed in your product category.
What happens when the licence term ends?
You stop using the artwork unless you renew. Agree a sell-off period for packed stock in advance.
License art for your next pack
Whether you want a ready-made piece or a bespoke design, post a brief on Art Licence Studio. Each deal records usage, territory, term and exclusivity, you get a licence record and receipt, payments run through Stripe, and artists keep their copyright. It's free to join. See /pricing and our pricing guide.
This is general information, not legal advice.