Royalty-Free: Definition, Where to Buy It, and Costs

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What is royalty-free: Definition, how it works, and prices

Matic Broz

Matic Broz

April 30, 2024

A royalty-free license is a permit to use copyrighted material without paying for each use, copy, or time period.

Definition

A royalty-free license is a type of intellectual property license that allows the licensee to use the licensed material without having to pay royalties or ongoing fees to the licensor. This means that the licensee can use the material, such as images, videos, music, or software, without having to make additional payments each time the material is used.

The key features of a royalty-free license include:

  • No per-use fees
    The licensee does not have to pay a fee or royalty for each time the licensed material is used, unlike a traditional licensing agreement where the licensee would have to pay a percentage of the revenue generated from the use of the material.
  • Perpetual or long-term use
    Royalty-free licenses often grant the licensee the right to use the material perpetually or for an extended period of time, such as the life of the copyright.
  • Limited restrictions
    Royalty-free licenses typically have fewer restrictions on the use of the material compared to other types of licenses, allowing the licensee more flexibility in how they can use the content.

Royalty-free licenses are commonly used for stock media, such as images, videos, and audio files, where the licensor makes the content available for a one-time fee, and the licensee can then use the material in their projects without further payments. This model benefits both the licensor, who can generate revenue from their content, and the licensee, who can access high-quality media at a predictable cost.

What is a royalty-free license?

A royalty-free license grants you the right to use copyrighted material (images, videos, music, etc.) without having to pay ongoing royalties each time you use it. After a one-time payment, you can use the content in multiple projects within the terms of the license.

You can think of it like buying a hammer: you buy it once, and then you can use it to build as many things as you want without paying for the hammer again each time.

You shouldn’t confuse royalty-free with copyright-free, which means the material is not protected by copyright at all, either because the copyright has expired, been forfeited, or the material is in the public domain.

How much do royalty-free licenses cost?

The cost of royalty-free licenses varies greatly depending on the provider, type of content (images are cheaper than videos), purchase method, and license terms. The costs for royalty-free images range from $1 to $20, for videos from $10 to $80, and for music from $5 to $50. In some cases, however, prices can range from $0.20 to $500 per file.

If your main concern with royalty-free licenses is cost, you can read my two guides on the cheapest stock photos and the cheapest stock videos.

Why do you need a royalty-free license?

Can’t you just use any picture, video, or music you find on the internet? No, not really. Most images, videos, and pieces of music on the Internet are protected by copyright, i.e., the author has rights to them. If you use them without permission, you can get into legal trouble for copyright infringement. Lawsuits and fines can get very expensive very quickly (up to $150,000 each).

In a recent high-profile copyright dispute, artist Richard Prince had to pay $900,000 in damages and legal fees for using photographers’ Instagram portraits in his artwork without permission. There have also been some notable cases in the music industry. For example, the authors of the song “Blurred Lines,” Robin Thicke and Pharrell Williams, had to pay 5 million dollars.

This is why licenses exist—a license is a legal agreement that gives you permission (but not ownership!) to use someone else’s copyrighted work under certain conditions.

The royalty-free license is just one type of license that is most commonly used because it is the simplest, most permissive, and also the cheapest.

What can you do with a royalty-free license?

What you can and cannot do with a royalty-free license is spelled out in a legal document called a “license agreement,” and each stock media provider has its own. However, most of the conditions for royalty-free licenses are the same for all providers.

The basics of a royalty-free license include:

  • One-time payment: after you pay a one-time fee to use the content, you can use the royalty-free file repeatedly without paying royalties. This is where the name “royalty-free” comes from.
  • Non-exclusive: The content you license in this way can be used by anyone else. To obtain exclusive rights to the content, you need a rights-managed or a custom license, which is considerably more expensive.
  • No attribution required: In general, attribution is not required for royalty-free content. The only exception is editorial content, where attribution is often required. An attribution like the following usually suffices: “[artist name]/Shutterstock.com”.
  • Perpetuity: The license never expires. Once you use it in a project, your project is covered by the license forever. The only exception is certain unlimited download subscriptions, where you are not allowed to use the downloaded files in new projects after the subscription is canceled, but your existing projects are still covered.
  • Worldwide: You can use the licensed file anywhere in the world No redistribution of standalone files: You are not allowed to redistribute the content as a standalone file, e.g. by reselling original files, screensavers, templates, or ringtones.
  • Prohibited uses: You may not use royalty-free files in a defamatory manner or in a manner that violates export laws.

Broadly speaking, the above terms apply to all providers, but there are certain aspects of royalty-free file licensing where they may differ.

Aside from the cost, which can be arbitrary, and the file type (videos cost more than images), the terms of royalty-free licenses can also differ in the number of print/copy limits (typically 500,000 or unlimited print copies).

Indemnification is the providers’ liability if a licensed asset causes you legal problems and ranges from zero to $250,000 or $1 million, with more expensive licensing usually providing more indemnity. Some licenses also limit the production budget for projects using the asset (often at $10,000), while others are unlimited. License may or may not allow the direct use of assets on merchandising items or packaging for resale. Not coincidentally, the above points also explain the differences between the standard and extended license

Royalty-free vs. other licenses

Royalty-free license is the most widespread because it allows commercial use at the time as being very affordable and broad. But in certain situations, a different license can be a better fit.

Here’s a complete overview of other licenses:

CategoryRoyalty-freeRights-managedPublic domainCreative Commons
DefinitionA type of license that allows the user to pay once for using the image or content multiple times.A type of license that allows the user to pay for the image or content based on the specific use and duration.Content that is not owned by anyone and can be used by anyone for any purpose.A type of license that allows the user to use the image or content for free, as long as they meet certain conditions.
CostOne-time feeVaries based on use and durationFreeFree, but with conditions
ExclusivityNon-exclusiveExclusive or non-exclusiveN/ANon-exclusive
DurationIndefiniteBased on agreementIndefiniteBased on agreement
ModificationsYes, with some restrictionsYes, with specific permissionYes, with no restrictionsYes, with specific permission
AttributionNo, but appreciatedYesNoYes, depending on license
ExamplesStock photo websites, design templatesCustom photo shoots, specialized contentClassic literature, historical documentsWikimedia Commons, Flickr

Royalty-free vs. Rights-managed

Rights-managed licenses are very specific and grant you the right to use the content for a single, well-defined project. The cost depends on factors such as the intended use of the image, the size of the audience, and the duration of use.

Example of selection a rights managed license at Getty Images
An example of purchasing a rights-managed license from Getty Images. Since I chose very narrow terms, it’s much cheaper than a royalty-free license. However, if I choose more countries, a longer term, or change other parameters, the price can go up to hundreds of dollars. Credit: Getty Images

You can often get rights-managed licenses cheaper than royalty-free ones if you choose very narrow terms. This makes sense if you know you’ll never use the file again.

Royalty-free vs. Creative Commons

Creative Commons license is available in many flavors with different levels of restrictions. Some allow commercial use, some require attribution, while others prohibit modification.

Also, Creative Commons licenses don’t come with legal protection, so I usually recommend them for personal and non-commercial use only.

Royalty-free vs. Public domain

Public domain content is entirely free from copyright restrictions—anyone can use it for any purpose without needing a license or permission.

But how do you know if something is in the public domain? While the rules vary among countries, the general rule is that copyright lasts for the life of the author plus 50 or 70 years.

How do you get a royalty-free license, then?

Does that mean you have to contact the creators yourself? You could, but we usually use faster and cheaper ways. There are websites called stock photo, video, or audio marketplaces that act as intermediaries between creators and those who want to use creative content.

The best place to buy royalty-free content depends on whether you need stock photos or videos. Some of the best providers are Shutterstock, Adobe Stock, and Envato Elements.

These marketplaces have libraries with millions of royalty-free content. You can search for what you need using keywords and filters and pay a fee to legally use the content according to these terms.

Example of royalty free puppy photos at Shutterstock
A search for “puppy” returns 2 million royalty-free photos on Shutterstock. Credit: Shutterstock

There are usually several ways to pay for the licenses. The simplest is to pay per file, but it is also the most expensive. A cheaper option is to pay in advance for multiple files, e.g. 5 or 20, where you get a volume discount — we call these packages on-demand packages. The cheapest option is subscriptions, where you pay a fixed monthly fee for a certain number of downloads per month.

The most popular buying options of a royalty free image at Shutterstock
When you select an image, Shutterstock offers the two most popular options for purchasing a royalty-free license, but you can find more options by navigating to their pricing page. Credit: Shutterstock

What does “Editorial use only” mean?

Some media files are tagged with “editorial use only.” This means that you can use the content for informational or educational purposes in publications such as newspapers, magazines, textbooks, and online articles, but not for commercial purposes, such as advertising or promotional materials.

Editorial use only label at Shutterstock
The “Editorial Use Only” label is below the images on Shutterstock. You can also filter out all editorial content in the search menu to avoid seeing this type of content. Credit: Shutterstock

Editorial use only label is given mainly to images and videos that depict recognizable people (like Obama and Taylor Swift) and properties (Empire State Building, Eiffel Tower), such as famous people, models without a model release, and properties without a property release.

Most providers require you to cite the editorial content appropriately. here are a few examples of how you must cite content at different providers:

  • Shutterstock: “[Artist’s Name]/Shutterstock.com”.
  • Getty Images:  “[Photographer Name]/[Collection Name] via Getty Images.” or “[Video] [Imagery] [Music] supplied by [Artist Name]/[Collection Name] via Getty Images.”
  • Adobe Stock: “Agency Name/Author Name – stock.adobe.com.”

You can site all royalty-free content if you want to, but you don’t have to. It depends on your company’s ethics and policies.

Real-life examples: Images

Can I use a royalty-free image for anything and forever?

Almost. Royalty-free licenses are flexible, allowing you to use the image in multiple projects without time limits. But you can’t resell the image as-is, use it in harmful or misleading ways, or claim to be the original creator, and there are limitations for sensitive uses.

Another exception involves royalty-free content you get from certain unlimited download subscriptions. Some providers require you to re-license the same image for each new project. This system aims to prevent image scraping and ensures contributors are compensated fairly based on usage. While your existing projects remain covered forever, you may not use images in new work after canceling.

No, a royalty-free license does not cover the use in logos or other trademarks. Here I quote Shutterstock’s policy on using their images for logos, which also applies to most other stock photo sites:

“Because Shutterstock offers royalty-free licensing, not even our strongest licenses (Enhanced and Premier) allow photos, illustrations or vectors to be used as a logo, as part of a logo or as a trademark. /…/ If you would like to use an existing image on Shutterstock as a logo, Shutterstock would need to acquire the copyright from the contributor and then grant you exclusive rights. These rights would include the ability to use the work for trademarks and logos.” Source: Can Shutterstock images be used for Logos and Trademarks?

Does buying a more expensive royalty-free image give me more rights?

Sometimes yes, but not always. Many providers offer what they call standard royalty-free licenses, which we, as creators, use most of the time because they are cheaper ($0.20 to $20 per image) and cover most use cases.

They also offer something called extended (or enhanced) royalty-free licenses, which grant you additional rights, such as unlimited copies/prints (instead of 500,000), higher indemnity ($250K vs. $10K), merchandising rights, and more.

But these also cost more, typically 5 to 20 times more than the standard version.

Can I use a royalty-free image on T-shirts and other products I want to sell?

It depends on the license. Using images for end-products where the image has a major role, such as T-shirts, calendars, mugs, templates, etc., typically requires an extended license. If a stock photo site provides an extended license or allows merchandising by default, you can do that.

Can I use a royalty-free image with a person in it?

Reputable stock marketplaces take steps to ensure images with people have model releases, reducing your risk. However, it’s always wise to be careful with ‘sensitive use’ cases, like implying someone endorses a product, which is not allowed.

If in doubt, look for images specifically labeled for commercial use, and be mindful of the context in which you use them.

Can I use royalty-free images for blogs?

Yes. Royalty-free licenses are perfect for websites, blogs, and social media content. Even if you’re not making money directly from the blog, the image is still being used in a public-facing way, making a license necessary.

Real-life examples: Videos

Using royalty-free videos is a bit more complex than images because there a more moving parts (pun intended!), and as a result, the licensing terms differ more between providers.

Can I monetize YouTube with royalty-free videos?

Yes, royalty-free licenses are designed for commercial projects, including YouTube videos with monetization enabled. In some cases, you may have to buy an extended license which is much more expensive, depending on the provider and the number of views your video gets.

As a result, royalty-free licenses should also cover TikTok, Twitch, Instagram, and other social media and streaming platforms.

Can I add my own music/voiceover to royalty-free videos?

Royalty-free licenses generally give you broad rights to modify and incorporate the video into your own work. You can cut, trim, add effects, and combine them with other elements as needed.

However, you may not edit or in any way change (you may crop sometimes) editorial videos, especially if that would change their message. Also, the voiceover may not be political, defamatory, or in any way illegal.

Can I use royalty-free video clips in a client’s commercial/promo video?

Yes, most royalty-free licenses allow you to incorporate the video into the work you do for a client, but there are some nuances. With most royalty-free licenses you can use videos in client projects and send them the end product, but they are not allowed to use the royalty-free video themself.

If multiple people work on the same project, you will need a multiseat extended license or a team license, depending on the provider. 

Also be mindful of license terms regarding production budgets and distribution scale, especially if your client is a large company or the project is high-profile. In such cases, you will often need an extended or even custom license to match their requirement for distribution scale and their indemnification requirements.

Can I use royalty-free stock footage in films/movies?

You may, though you may need an extended license, depending on the provider you choose. The main question here is if you should use it.

Some creators are opposed to it, but many movies use stock footage, such as the entering scene in the movie The Menu, which the director admitted to be a stock clip.

If you do use stock footage in a film, you should get a rights-managed custom license with exclusive rights to the video. This way you avoid other people using the same clip and thus embarrassing you.

Can I use royalty-free videos for background footage?

That’s what it’s best for. Royalty-free stock footage libraries are full of ‘b-roll’ clips (cityscapes, nature scenes, crowds, etc.).

Real-life examples: Music & SFX

You can use royalty-free music on websites, social media platforms (including Twitch, Facebook, TikTok, Twitter, and Instagram), and other streaming services. It’s also suitable for corporate and personal videos, e.g. wedding videos and presentations.

In addition, royalty-free music can be used in commercial and non-commercial podcasts, TV and radio programs (movies, news, talk shows, commercials), trade shows, and school projects.

For audio, I prefer specialized services like Artlist and Epidemic Sound, which offer fewer restrictions than platforms like Shutterstock and Adobe Stock. Shutterstock, for example, restricts the use of music in advertising campaigns with a budget of up to $5,000, in apps and games with up to 1,000 copies and use in a single territory per license. These conditions are similar to those of a rights management license. For most use cases, a (more expensive) extended license is required. Similarly, Adobe Stock requires extended licenses for music used on TV, radio, PPV streaming platforms, apps, video games, and cinemas.

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