I own an extensive collection of small antique prints. I have been
approached by a boutique publisher who would like to purchase scans
(only) of this collection presumably for use both in print and on the
web.  They have asked me to quote a fee for this purchase and I have
no idea as to where to begin or how much to ask.  I do know what 
they charge others to purchase the right to use the images they
already own ($125.00 USD), but not what the margin might be, hence
what I should ask for.  I should also state that I would be
responsible for making the scans for them and delivering them
electronically.  I have to make a proposal to them soon, so I need
guidance not only about price, but if I should inquire about use,
limitations, finite period of agreement, etc.  When responding, please
be sure to include specific, verifiable reference to sources of
information that I can use in my own negotiations.  Thank you.

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Request for Question Clarification by hlabadie-ga on 11 Jan 2003 05:03 PST

It seems to me that you occupy the same position as the artist would
with respect to rights and expectations regarding reproduction of the
images, and in consequence ought to have the same payment scheme
applied to your situation as would apply to the artist, namely one of
royalties and a share of licensing.

Would pointers to royalty arrangements be an adequate answer?

hlabadie-ga

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Clarification of Question by lindsmom-ga on 12 Jan 2003 22:30 PST

Thank you for your clarification request.  Your premise and question
is a good and reasonable one, but I believe may complicate the
situation unnecessarily.  This boutique publisher is VERY specialized
and their print publications are very limited in scope of
distribution; comparable to a vanity press but for corporate clients. 
Their website on the other hand, is wider in scope but specialized in
interest.  The items they are interested in obtaining my scans for,
would primarily be used (1) on their website, but not in a public
area.  They would be made available to researchers and/or advertisers
in need of a particular image.  (2) The traditional publishing market
would be client specific and a very limited run.  So my particular
need is guidance in determining a fair and equitable compensation for
the scans.  I really have no practical way of being able to track
their usage after I release the scans, so I'm looking for guidance on
setting a price for the scans.  If this is not enough information,
please contact me again.  Thank you for your interest.

Under the royalty and licensing scheme, it is the responsibility of
the publisher to keep accounts and to track usage of licensed items
for the purpose of collecting the royalties and license fees on behalf
of the artist or copyright owner. The owner receives a statement from
the publisher (usually quarterly or semi-annually) that enumerates the
sales and the percentage of total income due to the owner. In other
words, you would do nothing to keep track of the usage: it is the sole
responsibility of the publisher. A flat fee arrangement would
potentially be advantageous to the publisher but detrimental to you.
In California, for instance, there is a mandatory 5% minimum royalty
that must be collected and paid to an artist by a publisher who uses
an image, and it is the publisher who has the only responsibility in
the matter. Typically, contractual royalty and licensing provide for a
10% royalty and a 50% split of licensing fees. You can see how that
might add up to a substantially greater sum than a flat fee.

hlabadie-ga