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More: Who Owns The Plates?

Copyright January 10, 1996

Here s more discussion on the issue of who owns the plate.
First, Cy
Stapleton writes:

From: Hotline Cy
To: TomCrouser

In a message dated 96-01-02 17:00:42 EST, you write:

Now, personally, I do not recommend you extend the ownership of the tools of production (plates, negatives, computer files) to the customer simply because of the potential liability being incurred should something happen to the customer s work while it is in your possession. You may, of course, modify your terms and conditions of sale to whatever you wish.

This is a topic I covered some time back in one of my columns. One of my customers, Scarborough Faire, had a Dallas area DTP shop create a brochure for them using clip art elements and text that they provided the DTP (typesetter?). They normally use the same brochure for two to three years, changing only dates and occasionally prices. In the past the typographer had given them boards and they simply ordered a few lines of galley type and pasted that over the old type for the next year s brochure. In 1994, however, the typesetter had converted to DTP and provided Scarborough the film only. The brochure was designed with screen tints and ghost images with type overprinted - making cut and past impossible.

When Scarborough went back for the changes for the 1994 brochure (only about a half dozen lines of type) the DTP house quoted them $2,200 for those changes - approximately the same as they charged for the original layout. When Scarborough requested the boards so they could make their own corrections, they were told that there were no boards and that the electronic media Scarborough had paid over $2,000 for was their property and not Scarborough s. Because of the time frame Scarborough had no choice but to have them produce the new output, but that is the last bit of work that shop will ever get from this customer.

I had attempted to get Scarborough to include in their contract that the boards and/or any electronic media was their property and must be returned as a file that could be read or modified by commonly available software (the job was produced using Corel Draw and PageMaker 5.0.) Needless to say, they didn t heed this warning and ended up paying over $2,000 for a job that should have cost them less than $100 - including film.

My policy whether working with artists, writers, photographers, design studios, or typographers that the work they get from me is done on a work for hire basis and that I own the hard copy, electronic media, negatives, or whatever. There are many who will not go along with my requirements but I never have any trouble finding one who will. Photographers are the hardest to deal with. Perhaps that s why there are so many starving photographers. cy.

Thanks for your letter Cy.
I think a customer who specifies, as you indicated, that they want the files, boards, etc. can usually obtain them from the printer. My problem is that when it is defined by some sort of trade customs that the customer owns these tools, and where it is common for the printer to maintain them between printings, then the printer is liable for their safekeeping and therefore is exposed to a humongous liability. I don t feel the typical printer would want to take on such a risk.

By the way, this is the same legal issue (in my printer s opinion) as parking lots face. Parking lots have signs saying Park at your own risk. We don t take liability for your car, belongings, life, etc. Otherwise, if they had a fire and cars were destroyed (I actually know of one case of a parking lot burning), the parking lot would be liable for the cars- - - far exceeding their compensation in parking fees.

Again, thanks for the letter. Here s another letter on the same topic.
Subj: Re: Who Owns The Plates?
From: RayANDREWS
To: TomCrouser

According to a legal-beagle friend of mine, if you itemize the plates on your invoice, he owns them. If you don t, you own them. The problem, from a sales point is, can you justify the cost of making the plates, without itemizing them? And how do you justify the lower cost of a reorder? So, I guess, most of us just wishy-washy along -- or claim we did the job with disposable megalith plates-- doing metal on the come for reorders.
Comments?

Well, Ray, if you include language in a Terms and Conditions of Sale clearly spelling out who owns the plate, I think you would overcome this deficiency, if it is one. Another attack is simply use an non-itemized invoice if necessary.

And another reader writes:

Subj: Re: Who Owns The Plates?
From: webber@ix.netcom.com (Paul)
To: TomCrouser@aol.com

I have been in the printing trade for 20 years and have worked in many shops around the country. Every shop that I worked in has held the policies that all art negs and plates are the customers property IF they requested them. This only seems to happen when someone is not happy and we all know the customer is always Right!
Just my 2 cents. Paul Cashman http://www.lookup.com/Homepages/37499/home.html

Thanks, Paul. I think most of us would allow the customer to take the plate as you indicate, as a practical matter. However, I d see a real problem if the policy doesn t spell out by when the customer has to request them. For instance, if the customer requests them at the time the job was done is one thing. However, if the customer waited seven years and then requested them, it would be something else. If the terms and conditions of sale are silent on the issue and it is a policy, then it could be argued that we would be liable for remaking plates, art work, etc. for a job several years old that the customer will take to another printer once you furnish them.

I think the following message from Dave Fellman, hits the nail on the head.

Subj: Re: Who Owns The Plates?

From: DFallT

To: TomCrouser

Tom:
I agree with your recommendation that a printer not extend blanket ownership of plates and other production materials to customers...for all of the reasons you stated.

But I would add this caveat from a sales/marketing standpoint: If a customer ever asks you for film or plates related to a job you ve previously run - - with the intention of sending a reorder of that job to another printer - - I recommend that the printer cheerfully turn those materials over to the customer. At that point, the printer has lost the job. A good attitude about these materials might save the customer. As I see it, the printer would have little to lose and lots to gain. (I wouldn t see anything wrong with a disclaimer to the effect of these materials worked fine on our equipment, but we extend no warrantee that they will produce the same results on another printer s equipment.)

What do you think?.... Dave Fellman

Again, I think it s a fine approach to a sticky problem and I would wholeheartedly endorse Dave s approach. To summarize, I would spell out the ownership of the tools of production rest solely with the printer within the terms and conditions of sale. Then, should the printer wish, give the negatives to the customer as a customer accomodation.

Until next time, Happy Trails To You. . . . . .Tom Crouser

Crouser & Associates Performance Group program includes two on-site evaluations by Tom Crouser each year along with two group meetings. Management training is held during the group meetings along with participation in a meeting with non-competing printers. Join others who have decided to run their business instead of the business running them. Reply to by Email to Tom Crouser for more detailed information or call Clark Workman at (304) 342-5100. Or fax (304) 342-5187 or contact crouser@ibm.net.


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Date inserted: Thursday, February 01, 1996 3:48:39 PM

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