Payment is due at each milestone upon the Client's acceptance of the Deliverables. All invoices are payable within 30 days of receipt. A 1 1/2% Monthly service charge is payable on all overdue balances. The grant of any license of copyright is conditioned on receipt of full payment.
A 30% initial deposit fee will be required in order to begin an assignment. All assignments are billable by phase and will not continue to the next phase, once payment has been received.
The client shall assume responsibility for all collection of legal fees necessitated by default in payment.
The fees and estimates formally sent are minimum estimates only. Final fees and expenses shall be shown when invoice is rendered.
2. DEFAULT & ESTIMATES
The client shall reimburse the studio for all expenses arising from their assignment , including the payment of any sales tax due on their assignment, and shall advance 100% to the Studio for payment of said expenses. Clients usually pay the artist a cancellation fee if the assignment is cancelled for reasons beyond the artist's control. If the cancellationoccurred after the completion of preliminary work and prior to the completion of finished work, current data indicates the cancellation fee is 80%. If the cancellation occurred after the completion of finished work, the average cancellation fees currently range between 65 and 100 percent of the original fee. If the preliminary or incomplete work is canceled and later used as finished art, the client usually is contractually obligated to pay the unpaid balance of the original usage fee.
3. EXPENSES + FEES
Our studio guarantees to notify the Client of any licensing and/or permissions required for art-generating/driving programs to be used.
The client will indemnify the Studio against all claims and expenses arising from uses for which the Client does not have rights to or authority to use. The client will be responsible for payment of any special licensing or royalty fees resulting from the use of graphics programs that require such payment.
The client shall be responsible for making additional payments for changes in original assignment requested by the Client. However, no additional payment shall be made for changes required to conform to the original assignment description. The client shall offer the Studio the first opportunity to make any changes.
The Studio acknowledge and agrees that the source materials and technical and marketing plans or other sensitive business information, as specified by the Client, including all material containing said information, that are supplied by the Client to the Studio or developed by the Studio in the course of developing the assignment are to be considered confidential information. Information shall not be considered confidential if it is already publicly known through no act of the Studio.
Client acknowledges and agrees that the Studio retains all rights to copyright in the subject material. The Studio retains ownership of all original artwork, in any media, including digital files, whether preliminary or final. The client waives the right to challenge the validity of the Studio's ownership of the art subject to this agreement because of any change or evolution of the law.
In the event of a cancellation of this assignment, ownership of all copyrights and any original artwork shall be retained by the Studio and a cancellation fee for work completed, based on the prorated portion of the next payment and expenses already incurred, shall be paid by the Client.
Client agrees that it shall not hold the Studio or its agents and subcontractors liable for any incidental or consequential damages that arise from the Studio's failure to perform any aspect of the Assignment in a timely manner, regardless of whether such failure was caused by intentional or negligent acts or omissions of the Studio or third party.
9. LIMITATION OF LIABILITY
The Studio warrants and represents that, to the best of his/her knowledge, the work assigned hereunder is original and has not been previously published, or that consent to use has been obtained on an unlimited bases; that all artwork or portions thereof obtained through the undersigned from third parties is original or if previously published, that consent to use has been obtained on an unlimited basis that the Studio has full authority to make this agreement; and that the work prepared by the Studio does not contain any scandalous, libelous, or unlawful matter. This warranty does not extend to any uses that the Client or other may make of the Studio's product that may infringe on the rights of others. Client expressly agrees that it will hold the Artist harmless for all liability caused by the Client's use of the Artist's/Studios product to the extent such use infringes on the rights of others.
10. WARRANT OF ORIGINALITY
Any dispute in excess of maximum limit for small-claims court arising out of this Agreement shall be submitted to final binding arbitration before a mutually agreed upon arbitrator pursuant to the rules of the American Arbitration Association. The Arbitrator's award shall be be final, and judgement may be entered in any court having jurisdiction thereof. The Client shall pay all arbitration and court costs, reasonable attorney's fees, and legal interest on any award of judgement in the favor of the Studio.
11. DISPUTE RESOLUTION
If the rejection occurred after the completion of preliminary work and prior to the completion of finished art, current data indicates the rejection fee to be between 27 and 58 percent. If the rejection occurred after the completion of finished art, the average rejection fees currently range between 53 and 100 percent of the original fee. All necessary and related expenses are paid in full. In the event or rejection the client has chosen not to obtain any rights to the use of the artwork. Therefore many artists refuse to permit rejected work to be used for reproduction by the client without a separate fee. Artist and clients may agree to submit any dispute regarding rejection fees for mediation or binding arbitration.