The Legal Implications of Using Stock Images for Your Business Website
- Nicole Alvarez
- Mar 26, 2021
- 4 min read
Updated: Apr 7, 2021
Due to the nationwide quarantine, many businesses have been forced to shut their doors and embrace the switch to an online presence. A switch that would normally require months of planning and execution has happened in a matter of weeks. In order to prevent further delays and profit losses, businesses hastily created websites to cater to consumers virtually. However, this fast-paced initiative may have left many businesses open to legal liability if they used unauthorized online-sourced images to capture the eyes of consumers. So, it is important to understand the legal implications of stock image uses. Is your business playing by the rules?
Protected Intellectual Property
What are Stock Images?
Stock images are photographs and clip art illustrations that are published online by owners to offer licensing opportunities to the public. Typically, the owner submits their work to a stock agency like iStockPhoto, Shutterstock, and Getty Images. These agencies then market the image to thousands of people through their own websites and through third party search engines. Most commonly, stock images appear in Google searches under "images." Stock image owners typically retain the right to restrict licenses but the agencies receive commissions from each sale.
Most stock images are not free to use.
Copyright Protection
Under the Copyright Act, copyright protection is afforded to original works of authorship that are fixed in a tangible medium of expression including literary, musical, dramatic, recorded, and - most importantly in this context - photographical works. The crux of the Copyright Act is that copyright protection is considered an automatic right that vests in the author the minute the work is created and fixed. This means that photographers and owners of stock images do not have to formally register their photographs in order to enjoy protection. Once a photograph is taken, the Act allows the author complete control over its use and distribution by granting them five rights of exclusivity:
The right to reproduce the work
The right to prepare derivative works
The right to distribute copies of the work
The right to perform the work in public
The right to display the work
You may be wondering if this protection is affected or "waived" if an owner shares their work publicly or uploads it to the internet. The answer is no. As stated above, the owner has the exclusive right to use and distribute the work however they may wish. This means that conducting a Google search to find images for your website does not grant you the right to use them. In other words, it does not transfer any copyrights to you.
Licensing Stock Images
In addition to the rights of exclusivity, the Copyright Act also grants the owner of a work the power to authorize others to exercise their rights through licensing. Licensing a stock image permits the owner to retain the copyright while allowing others to use their image on their websites, blogs, or marketing. Most stock agencies offer two different kinds of licenses: Royalty-Free and Rights-Managed. The most common type of license associated with stock images and clip art is typically royalty free. However, this may not always be the case so it is important to read the licensing agreement carefully and fully.
Royalty-Free Licenses
Royalty-free licenses can be very cost-effective for businesses, they may range from $1 to $15 per image and do not require you to credit the photographer. With a royalty-free license, once you purchase an image or clip art, you are allowed unlimited uses with no additional costs. The freedom of use, however, is typically restricted based on the type of use.
Commercial (profit-driven) Use
A commercial use means that the image is used directly in the marketing and promotion of a product or service. Stock photos that state they can be used for commercial purposes may be implemented in your business website, advertisements, products, and more. These images may be used in any media that is intended to derive profits.
Editorial Use
Editorial uses are limited to non-commercial purposes meaning they may not be used to market or promote a product or service. For example, you may not use an editorial image on the homepage of your business website if the website is designed to sell products or services to consumers. Instead, editorial images are used in news articles, textbooks, documentaries, and blogs or websites with educational and descriptive purpose.
Personal Use
Personal use images are easier to understand because they require just that, a personal use. For a use to be considered "personal" the use may not involve an exchange of money, it may not promote a business entity (including non-profit organizations), and it may not directly or indirectly result in financial gain. Personal use images may be used in wedding announcements, invitations, photo albums, and other personal endeavors.
Compliance: Why it Matters
Copyright Trolls
Due to the massive amount of images and users online, you may think copyright owners rarely exercise their rights. However, individuals and law firms known as "copyright trolls" utilize digital software to search or "troll" for copyright infringement online. Any content that has been publicly posted online is vulnerable to being monitored for violations such as blogs, business websites, and social media pages. Individuals who make their living licensing images will actively protect their intellectual property by threatening infringers with litigation.
Conclusion
If you are caught using copyrighted material or images owned by a legal copyright owner, you may be subjected to civil and/or criminal consequences for the violation. Furthermore, copyright infringement may also come with reputational risks if the consuming public finds out about violations. Your business may gain a reputation for acting or competing unfairly, which could result in the potential loss to financial capital. However, if you properly license the use of an image and comply with its terms of uses you can limit your exposure to the harsh consequences of infringement. When designing your business website you may also consider sticking to free stock photo websites like Pexels and Pixabay.
Sources:
Rojas, Jeff. “The Beginner's Guide to Using Stock Images Without Getting Sued.” Entrepreneur, Entrepreneur, 13 Nov. 2017, www.entrepreneur.com/article/302607.
LaVine, Lindsay. “Use Photos in Advertisements? Take These Steps to Avoid a Lawsuit.” Entrepreneur, 17 Dec. 2012, www.entrepreneur.com/article/225299.
Shutterstock. “How to Use 'Editorial Use Only' Images: Shutterstock.” The Shutterstock Blog, 2 Feb. 2018, www.shutterstock.com/blog/how-to-use-editorial-use-only-images.
“What Does Royalty Free Mean.” Stock Photo Secrets, 26 July 2017, www.stockphotosecrets.com/questions-answers/licensing/what-does-royalty-free-means.html.
“📜 Personal License - FAQ.” How Can We Help?, support.creativemarket.com/hc/en-us/articles/360021010094--Personal-License-FAQ.
“Beware of the Trolls: Recent Uptick in Copyright Trolling and What You Should Do.” JD Supra, www.jdsupra.com/legalnews/beware-of-the-trolls-recent-uptick-in-63839/.
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Nicole
Great job! This is something that has always been a gray area for me and your post made things really clear. I think that this is something that is really easy to overlook for the typical person. I know that many businesses owners with less technical experience were forced to create websites during the pandemic. This timing of this topic and article is perfect.
Nicole, I think this does a great job explaining the issues here. One thing I would note is that people like to immediately argue that it is "fair use" without understanding the (rather onerous) conditions that must be reached first. I must say, even if there has been a recent uptick in the amount of copyright trolls bringing actions, this seems like an especially fertile ground for even more growth!
Nicole, I think you did a great job of reducing this complex area of law into digestible information for a business owner. I especially liked your suggestion of using free stock photo websites to avoid the issue altogether. Good job presenting the information in a readable way that brings an otherwise ignored issue to the front of peoples' minds. As a side note, I love the blog name.