Some Photographers Upset By New Reuters Contract

By: Jay DeFoore (Photo District News) Reuters has issued a new freelance contract that limits the resale options of photographers and grants more power to the wire service -- changes that company officials say were necessary to keep the business viable.

The new contract, issued in November, is intended to replace a contract that has been in place for nearly a decade.

Reuters permits photographers to re-sell assignment images to other agencies, but the new contract extends the embargo period from three days to one week. Photographers say that change kills a substantial portion of a photo's resale potential. Reuters also retains the right to buy out and exclusively license photos not sold after the seven-day period.

The number of agencies that photographers can syndicate to has also decreased under the new contract. Previously, photographers were barred from syndicating to the Associated Press (AP), Agence France-Presse (AFP) and Getty Images. The new contract lists 15 agencies and wire services that are off limits, including Corbis, WireImage, ZUMA Press, and others.

"Reuters needs X amount of revenue to keep [the photo division] viable. I don't think the company wants to see photos we assign being sold by our competitors," said Reuters' North American Photo Director Gary Hershorn. "We'd rather sell the pictures and give photographers a split of the revenue."

But another new contract provision decreases photographers' share of re-sale revenues. The old contract allowed photographers to retain 45% of the gross revenue, but the new version shrinks that to 25% of net revenue.

"It's extreme," one photographer said. "A much more fair distribution would have been 50% of the net as opposed to 25%."

Although Reuters is one of the few media companies that allows its freelancers to license their outtakes to third parties, some photographers said the new contract severely curtails their ability to generate revenue beyond the initial assignment.

"I'm not happy with it," said Ray Stubblebein, who has shot for Reuters for 16 years. He declined to elaborate.

"It's a crappy deal and I'm just shocked they're not taking this as an opportunity to do the right thing and have the industry applaud them," said another photographer who spoke on condition of anonymity. "Intellectual property is what this business is all about. The minute photographers start giving that away it hurts everyone."

But Hershorn said the contract is equitable for both sides. "It's the best contract in the photo business," he said. "We're not aware of any others that give rights to resale. I think it's a very fair contract."

The new contract reflects changes in the industry during the last decade, including increasing competition, Hershorn added. The contract also reflects Reuters' transition from a wire service for daily newspapers to a global agency licensing images to newspapers, magazines, textbooks and commercial clients.

Hershorn said photographers are likely to make more money under the new contract, since the company is marketing images more aggressively, and since photographers will receive payment for re-sales worldwide, not just in the U.S.

Photographers are being asked to return the signed agreement by Dec. 31. Boston-based freelancer Jim Bourg was the only photographer willing to confirm that he would sign the contract.

"We've put a lot of work into this [contract]," said Win McNamee, second in charge to Hershorn. "The early reaction we've had has been favorable. We're hopeful it will be a very high percentage [to sign]."

More information about the contract is available at PDN Online.