Licence Types Explained (Without the Corporate Jargon)
Posted by Art Licence Studio Team on November 29, 2025
Let's be real: licensing terminology sounds like it was designed to confuse people. "Royalty-free" sounds free (it's not). "Rights-managed" sounds like... someone managing your rights? (Kind of, but also no.)
Here's the actual breakdown, in words that make sense.
Royalty-Free (RF) — The "Netflix" Model
Despite the name, royalty-free is not free. You pay once upfront, then use the artwork as many times as you want (within the licence scope). No tracking usage, no extra fees per use.
Think of it like: Buying a song on iTunes. You paid for it, now play it 10,000 times—nobody's counting.
The catch: It's usually non-exclusive, meaning your competitor could license the same image. Awkward if you both use it in the same campaign. 😬
Rights-Managed (RM) — The "Custom Fit" Model
Rights-managed means you're licensing for a specific use: this campaign, this region, this time period. Price scales with how big you're going.
Think of it like: Renting a venue. Small birthday party? Cheap. International product launch? That'll cost more.
Why bother: You can often get exclusivity—meaning no one else can use it for the same purpose. Great for hero images where you need to stand out.
Exclusive vs. Non-Exclusive — The "Are We Dating?" Question
Exclusive: Only you can use this artwork. The artist can't license it to anyone else (for the exclusivity period/scope). Premium vibes, premium price.
Non-exclusive: The artist can sell to others too. You're not the only one, but you're paying less. Perfectly fine for most uses—just don't expect exclusivity at non-exclusive prices.
So Which One Do I Pick?
Quick decision tree:
- General marketing/social/web? → Royalty-free. Easy, predictable, cost-effective.
- Big campaign where the image IS the campaign? → Rights-managed with exclusivity.
- Ongoing brand asset you'll use forever? → Extended or exclusive licence.
- Not sure? → Start with standard. You can often upgrade later.
Every licence on Art Licence Studio tells you exactly what you're getting. No lawyer required to decode it. You're welcome.

