Infringements of Stock Images
and Lost Revenues
September 2007
Introduction
Nearly all aspects of the stock photography business have been transformed in the past decade. Film-based capture and overnight delivery of analog images have been replaced by digital images and electronic delivery. High-speed databases and broadband internet connections have made it easy to market, sell and deliver images anywhere in the world- all with the press of a button.
In addition, the internet has brought a major shift in how and where images are used. Print uses are declining and new media uses-such as online and portable devices-are proliferating. In the future, the stock photo industry will rely more heavily on revenues from these new media formats and non-traditional licensing models.
Along with the opportunities of the new digital age, significant challenges for the stock industry have also emerged. One challenge in particular is not yet fully appreciated, although we think this challenge also creates an opportunity for photographers, image distributors and industry groups to create new customers, new markets and new revenue streams.
Easy online access to millions of stock images has also made them extremely susceptible to theft and misuse. With just a click and a drag, users can move a digital file from any web site onto their desktop-without payment or license. Although images sourced this way are typically low-resolution, they are often good enough. High resolution is traded for an unbeatably low price-free.
In addition to outright piracy, digital media have also increased the potential for legitimately licensed images to be used outside the scope of the original license. Once downloaded, image files can be easily repurposed and redistributed to other users. File names are commonly changed and identifying metadata is stripped or altered, making these images vulnerable to misuse.
This paper addresses how and why the stock photo industry is subject to this theft; we also try to gauge the size of the problem. We describe what is being done now, obstacles to overcome, and suggest additional steps to minimize piracy of stock images, protect our copyrights, and maximize revenue opportunities for photographers and the distributors of their images.
The Size of the Problem
To learn more about th extent of the infringement problem, the Stock Artists Alliance teamed up with PicScout, a company that uses advanced visual recognition technology to track images on the web. Starting with a repository of copyrighted images, PicScout crawls the web to find matches and the technology is able to reliably identify unauthorized usages.
In 2003, SAA became aware that PicScout had begun searching commercial web sites for the Rights Managed images of several major stock collections and uncovered a shocking rate of abuse-nine out of every ten images they found were unauthorized uses.
This suggested a staggering loss of potential licensing revenue to those companies-and to copyright holders. PicScout further observed that these infringements could be classified into two general categories-inadvertent misuse and intentional theft. While some customers exceeded legitimate licenses, a large fraction of cases they reported were blatant infringements.
It is difficult to know how to interpret the real-world significance of this startling finding since many infringing uses cannot practically be converted into new licenses-yet. But these practical difficulties have not stopped many stock distributors, archives, and some individual photographers from aggressively pursuing some of the worst offenders, often with real revenue gains as the result.
Public records indicate the largest stock distributors today convert many infringers into paying customers and generate millions in revenue that used to go uncollected. Mid-sized and smaller archives too have reported significant revenues recovered by pursuing leads.
Read the Manifesto here or Download the PDF
A proposal from the Stock Artists Alliance
for the adoption of guiding principles, standards and technology
to promote image metadata use.
Version 1.0 / July 2006
Photographers, illustrators, publishers, advertisers, designers, art directors, picture editors, librarians and curators all share this same problem: struggling to track rapidly expanding collections of image assets.
In a world of desktops increasingly crowded with digital files, old methodology persists. Folders of digital images are "filed" while information about the images -- creator, caption and rights data -- often is available only from a separate database, notebook, or CD jacket.
The only link between the image and this data is a file name and where that file is stored. Unfortunately, this link is easily severed when file names get altered, files get relocated, copies are made and disseminated. Meanwhile, image information gets left behind.
Without effective systems in place for identifying and managing digital assets, everyone working with digital images is adversely affected. Resources are wasted, opportunities are lost, liability increases and intellectual property rights are eroded.
The volume of digital files challenges publishers who need to manage and access them. Busy designers and art directors download preview images to their desktops, only to find weeks or months later they cannot identify the source. Librarians and curators -- charged with making more cultural resources available to the public -- are already overburdened managing their legacy analog material. Now, they must cope with rapidly expanding digital assets as well.
Lack of information about an image file can delay projects, necessitating additional research to establish licensing rights, obtain clearances, and confirm caption details. This in turn has contributed to the growing problem of misuse of images, whether through error or by intent. Without proper licensing or permissions, users infringe copyright and expose themselves to liability.
The pressures on image creators-as copyright holders-to protect their intellectual property has intensified since the digitalization and online distribution of their images. If their images cannot be properly identified, they suffer from lost revenues due to missed licensing opportunities. Add to this the challenge posed by proposed changes in U.S. Copyright Law. If "orphan works" legislation passes as drafted, it would permit use of their images without a license in the event the owner cannot be located.
Industry wide adoption of metadata is the key to addressing these challenges. Yet today, it is underused and under-supported. What's missing is an adherence to standards and technology solutions that support metadata use and preservation.
Image creators need to commit to embedding metadata as they move rapidly to an all-digital workflow. Those at the forefront have recognized the value of metadata to better protect their intellectual property. A recent Stock Artists Alliance member survey of nearly 400 active stock photographers found that a majority currently embed metadata in their image files. 9 in 10 include a copyright notice, 8 in 10 include creator contact information, and 7 in 10 include a unique image identifier, title, caption and keywords.
September 6, 2007. The Stock Artists Alliance has released its latest white paper report, “Infringements of Stock Images and Lost Revenues,” which addresses one of the stock industry’s most serious challenges.
Read the White Paper
Along with the opportunities of the new digital age, easy online access to millions of stock images has also made them extremely susceptible to theft and misuse. With just a click and a drag, anyone can move a digital file from a web site onto their desktop—without any payment to photographers or distributors.
In addition to outright piracy, there is also the increased potential for legitimately licensed images to be misused. Once downloaded, image files can be easily repurposed and redistributed to other users. File names are commonly changed and identifying metadata is stripped or altered, making these images vulnerable to misuse—and even more difficult to enforce copyrights.
SAA’s research addresses how and why the stock photo industry is subject to this theft. The report also describes current industry-wide initiatives and suggests specific steps to minimize piracy of stock images, protect our copyrights, and create new revenue opportunities for photographers, archives and distributors.
SAA’s report features detailed findings of a landmark SAA/PicScout study that tracked for four months the online uses of 20,000 Rights Managed images represented by market leaders Getty Images and Corbis. SAA’s report also gauges the size of the problem and develops a ballpark estimate of the industry’s uncollected revenues.
According to respected stock industry expert, Joe LaCugna, PhD, “SAA and PicScout are to be commended and thanked for this preliminary research into the costs of online infringements of stock images. This study offers the most specific and actionable research into this critical issue facing the stock industry today.”
LaCugna reviewed the methods and findings and concluded that “SAA used a simple, straight-forward method to build a compelling case that collecting on infringing uses is a largely untapped potential revenue stream for agencies and some photographers, and that new technologies are making it much easier to track rights and convert infringers into paying customers. This is rare good news all around for players in the stock image industry. SAA also makes a strong case for even greater vigilance and better industry collaboration, and they identify best practices for photographers who want to earn as much as they can from their images.”
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Just before releasing this report, SAA learned of a new Getty Images' new license product that prices images across all their collections at $49 for web or digital use, including their highest value RM images. This is a very troubling move which seems to devalue their RM imagery and thus undermines efforts to collect lost revenues from web-based infringements.
SAA’s report also describes tracking and recovery efforts across the industry and suggests that much more can still be accomplished. Obstacles that can best be addressed include the lack of industry-wide licensing standards, the need for more effective rights management of all stock images (including Royalty Free), and a commitment to embed and preserve image metadata whenever digital files are sent or received.
SAA’s Executive Director Betsy Reid notes: “As an advocate for stock photographers’ interests, SAA is committed to working toward solutions with our industry partners, and this begins with building greater awareness around this infringement issue and for all stakeholders to do their part in addressing this issue. We can achieve a lot through collective efforts that we cannot achieve alone.”
