For the first time buyer it can be confusing to understand the differences, so in this article we’ll clear things up. We’ll get you on the road to understanding both RF and RM licenses so you can get good value, and buy with confidence knowing your project won’t run into any legal or ethical issues.
What is Royalty-Free Licensing?
Stock footage sold under a Royalty-Free license (“RF”) allows a single customer to use that content forever, within the terms of the license, without having to pay additional fees or royalties. The content can be used in personal or business projects, with worldwide distribution and across an unlimited number of projects. For a standard Royalty-Free (“RF”) license the only limitations might be the maximum audience size allowed, for example whether the content can be used in film or TV.
For TV shows, feature films or advertisements with national advertising, stock footage agencies will often offer Extended “RF” licenses to allow for bigger audiences. Pond5, Shutterstock and our own shop here at canadastockfootage.com all offer extended licenses. For more info on extended licenses, please see below.
Its also important to also understand that beyond audience size, there are other restrictions that Royalty Free footage may be subject to. For example restricted uses may include not using clips in political campaigns, or for any kind of use that puts a stock footage model in a bad light. Always be sure to read the license agreement before purchasing to understand all restrictions. For reference here’s an example of a Content License Agreement from our own canadastockfootage.com.
Another important difference between “RF” and “RM” footage is that Royalty free content is often purchased as an entire clip, whereas Rights Managed is often purchased by the second.
Key Points:
One-Time Payment: Pay once and use the footage forever. This can offer a better value than “RM” license where extra fees are required for each different use.
Wide Usage: Suitable for advertising, films, websites, and more. Just be sure to select the right license for the use.
Restrictions: You must still adhere to usage restrictions outlined in the license agreement, such as not using the footage in political campaigns, or in ways that could be considered defamatory or misleading.
Content length: When purchasing Royalty-Free footage you often get the entire clip vs Rights-Managed footage which is usually sold ‘by the second’.
Royalty Free Stock Footage | Extended Licensing & Buyout Options
Extended licensing is an upgrade from a standard royalty-free license, that works for projects with bigger audiences. This type of license is ideal for film, TV and national advertising. At canadastockfootage.com we offer two Royalty Free licenses based on audience size: For most uses the Standard license is suitable, whereas for film and TV use where the audience is greater than 500,000 the Extended license would be required.
Another example of a Royalty-Free specialty license would be a ‘Buyout option’ which allows a customer to reserve a clip for a certain amount of time. This way no other competitor can use that same clip in their project or advertising. A Buyout option is something we offer for most of our exclusive clips at canadastockfootage.com.
Key Points:
Enhanced Rights: Includes expanded rights such as more extensive distribution and bigger audiences. Allows for a broader range of uses, including TV, film or high-profile commercial campaigns.
Higher Cost: More expensive than standard licenses due to the additional rights and flexibility.
Buyout options: Allows for exclusive use to a stock footage clip, so only one customer can use a clip for a specified period of time. Prevents the same content being used by different competitors.
What is Rights Managed Licensing?
Rights managed (RM) licensing offers a more controlled approach compared to royalty-free licensing. With RM footage, the cost and usage terms are determined by a project’s scope, such as the geographic distribution, its intended use and the duration of usage. Rights managed content is often purchased ‘by the second’. It’s generally a more expensive type of license that's often purchased for film, television, and larger advertising campaigns. Though expensive, it can allow for more exclusive uses.
Key Points:
Tailored Pricing: Costs vary depending on where the footage will be used (geographic location), how the footage will be used and for how long.
Potentially Higher Costs: Rights managed footage is typically more expensive than Royalty-Free footage.
Content length: When purchasing Rights-Managed footage, clips are usually sold ‘by the second’ vs Royalty-Free footage where you often get the entire video.
Choosing the Right License
Selecting the appropriate license depends on two main factors:
1. Project Scope: Determine how and where the footage will be used. Does the license match your project’s needs and usage plans?
2. Budget: Consider how much you’re willing to spend and whether the usage justifies the cost.
Understanding the difference between Royalty-Free and Rights-Managed stock video licenses not only ensures that you’re using footage legally and ethically, but that you’re getting the best value. Always be sure to read the license agreements carefully to comply with all terms and conditions. Any questions? You can reach us right here. We’re always happy to help.
