Myfonts/monotype New Agreement
Comments
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@Nadine Chahine I think you will find that many independent type designers and foundries are fed up with distributers forcing unfair terms and royalties on them, but feel they have no choice in the matter, as many have, over time, come to rely on the steady royalty stream as a hefty part of their income.
The Distributers are taking advantage of this, by introducing a 'sign it or leave' approach, knowing that in this economic climate, no one can afford to lose a segment of their income overnight. Only the few that don't rely heavily on that income have the luxury of choosing the 'or leave' option.
Many type designers/foundries have started putting more effort into their own websites, and this is where the future is headed as things stand for Independent type designers now.
The ship is turning, but it is a long slow process.
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A professional association of type designers could run effective advertising campaigns raising awareness about abusive conditions imposed on foundries and the importance of buying fonts directly from type designers or their preferred distributors. A kind of Fair Trade seal could be devised that could only be displayed by points of sale that meet the minimum requirements of said professional association.What about opening a thread dedicated to promoting the creation of this association and to summoning possible members?4
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Fontfruits said:@Nadine Chahine I think you will find that many independent type designers and foundries are fed up with distributers forcing unfair terms and royalties on them, but feel they have no choice in the matter, as many have, over time, come to rely on the steady royalty stream as a hefty part of their income.
The Distributers are taking advantage of this, by introducing a 'sign it or leave' approach, knowing that in this economic climate, no one can afford to lose a segment of their income overnight. Only the few that don't rely heavily on that income have the luxury of choosing the 'or leave' option.
Many type designers/foundries have started putting more effort into their own websites, and this is where the future is headed as things stand for Independent type designers now.
The ship is turning, but it is a long slow process.1 -
@Die in-dryfoun This sounds fantastic! I'm pretty sure it would be overwhelmed with support as soon as the word gets out!0
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This sounds like the dictionary definition of a cartel—or is that only if price fixing is involved?0
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Speaking as a font consumer, I simply want to be able to continue to buy a perpetual, per-CPU transferable font license with no stupid subscription scheme.
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@Ray Larabie I’m not a lawyer but I think you’re right; as long as there’s no discussion about—or agreement on—a minimum price for fonts, I don’t think it would constitute a cartel.0
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Basically, my understanding is that you want to avoid all specific discussion of prices. Definitely worth getting legal advice on what can and cannot be discussed in terms of pricing models.0
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As an example of a successful organization formed by creatives, consider the Association of Registered Graphic Designers of Ontario.
The RGD provides professional certification, the requirements of which give it some clout.
However, graphic designers work for fee, and the issue we type designers have is with product distribution.
I’m not sure whether type designers would want to go through a certification process, especially with Monotype running its own training programs certifying its suppliers.
However, if the criteria for membership was having a certain number of typefaces distributed by Monotype, Adobe or equivalent—meeting those companies’ strict technical standards—that might be sufficient, without requiring portfolio assessments.
At any rate, the RGD is a benchmark, to indicate areas of concern (“structures”, to use Nadine’s term) and show what can be done via professional organization.
While it has much in common with other design organizations such as the AIGA, it was formed in 1996, mainly prompted by the impact of large American software corporations on independent designers.
—Nick Shinn, RGD Emeritus
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John Butler said:Speaking as a font consumer, I simply want to be able to continue to buy a perpetual, per-CPU transferable font license with no stupid subscription scheme.
I'm not saying we shouldn't have such discussions of licensing - it is an important topic - but that we should remember that these are ultimately separate issues.5 -
Die in-dryfoun said:Also... I cannot help but think that it is ironic that the origin of the greatest disparity and injustices in our industry is the arbitrary and exploitative conditions that distributors impose on independent foundries, yet that is a taboo subject that is not openly discussed on our conference stages.
I have been on the conference committee and reviewed proposals for every ATypI event for roughly 15 years now, including this one. I certainly don’t recall seeing any such proposal prior to the Paris conference.
People may not want to call attention to any such POV where they are opposed to powerful opponents. But they also may not have felt like there was any point to doing so. Nadine is in a strategic position where it is very much in her interest to have independent foundries and type designers NOT do business with Monotype and/or seek out different terms, so she is speaking loudly about these issues. She also offered some nascent ideas about organizing.
I am not saying she is wrong. Just that yes, she has an ulterior motive besides speaking truth to power or some such. Obviously the conference committee (myself included) agreed that this is a legitimate topic of discussion.
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I am not saying she is wrong. Just that yes, she has an ulterior motive besides speaking truth to power or some such.Alternatively, one can say that Nadine’s efforts to create a distribution platform with a different model of relationship between distributor and foundries is part of her speaking truth to power, i.e. that her role as CEO of I Love Typography does not involve an ulterior motive but the same motive.
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Respectfully @John Hudson Font Bros has already been doing this for years and at the highest royalty rate for foundries at 65% which has never changed since our founding.
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Were you also in the committee that allowed ATypI Paris' T-Shirts to be printed with the logo of a sponsor foundry with such a level of hierarchy that it connotes that the event belongs to that company? How can sponsors or organizers be allowed to use the event for their blatant self-promotion? No one raised a hand to set any limits?
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Hi @Stuart Sandler I didn’t imply that Nadine and ILT were unique in treating foundries well. I was talking about Nadine’s motivations.1
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Simon Cozens said:Nadine led two sessions on the topic of power in the industry, where the relationship between distributors and foundries took up quite a lot of the discussion time.3
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John Hudson said:I am not saying she is wrong. Just that yes, she has an ulterior motive besides speaking truth to power or some such.Alternatively, one can say that Nadine’s efforts to create a distribution platform with a different model of relationship between distributor and foundries is part of her speaking truth to power, i.e. that her role as CEO of I Love Typography does not involve an ulterior motive but the same motive.0
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Sidetrack, but to the point of what talks we could have at ATypI: If it were up to me, I would propose a whole track dedicated to font business. Some topics:
- licensing models for web fonts (page views vs company size vs revenue size)
- legal protection for typefaces across various jurisdictions
- foundry exit plans: what happens when the principle designer retires?
- mergers and acquisitions; case studies
- how to set up a foundry
- understanding EULAs and T&Cs
- raising font and type design awareness
- supporting type education (including continued education)
- Can the type industry survive mass subscriptions and free fonts? How?
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• pricing methodologies
We can’t talk about pricing in any way that could be construed as price fixing, but we can definitely talk about methods for working out pricing, and compare methods and outcomes. And as you did in your pricing session at ATypI Paris, Nadine, we can look at and comparatively critique publicly available pricing information.1 -
Yes absolutely! We do have a similar session for Enterprise planned:
https://ilovetypography.com/academy/seminar-enterprise-licensing/
but it does make sense to have more around that! I would certainly love to hear more from foundries who are able to keep their IP in custom type projects.0 -
The main reason those of us at indie foundries don't advocate for a collective bargaining organisation is that we could then be accused of price fixing. Yes, that's some backwards shit. The game is rigged.
TN could have been the closest we can legally get to a collective bargaining org, but it seems to be floundering. Until there is a viable alternative distributor there's not much we can do.
That's not ILT, and it was never Fontspring either. My understanding about Fontspring is that they gave the "best rate" or a much smaller customer pool, resulting in getting less money even while getting a greater cut of the gross.0 -
Sorry to state the obvious here, a collective bargaining organisation is NOT a distributer as its role would be to bargain with the distributer on behalf of the foundries. That rules out ILT, Type Network, Fontspring, Fontstand and any other distributer yet to be formed.
It is also quite possible to negotiate in group with regards to conditions being offered without ever needing to discuss actual font prices. The informal group formed to represent the FontShop designers is one example.2 -
Also to state the obvious, the phrase "price fixing" is something of a term of art. It is not literally restricted to pricing but includes all terms of sale/distribution. If font foundries where to create a collective bargaining organisation to negotiate with the larger sellers (there is a real chance that regulatory bodies would consider that anti-competitive.
I'm not saying I agree with any of this but the fact is that the system is set up to think of us as competitors who do not have a right to work together to negotiate with a vendor or customer. As I said, the game is rigged. This is not just a problem in fonts, there is a problem of monopsony in many many industries. Anyways, most of us who have any experience in the business side know this. That's why there isn't already a union or similar.
My understanding of TN is that it's not exactly a distributor but more like a collective. The club together to scale up productions costs do negotiate on behalf of their members with Adobe at least. It's not exactly a collective bargaining org either. As I said, I think its the closest we could legally get. What I meant about there not being much we can do till there is a viable alternative distributor is that Monotype can basically set their own terms till there is somewhere else to go.
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Type designers are creative, intelligent people. It wouldn't be too difficult for designers to band together for THEIR interests. Since I am not a designer, I couldn't join in but I would look favorably upon any effort on the part of designers to protect their interests.0
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My understanding about Fontspring is that they gave the "best rate" or a much smaller customer pool, resulting in getting less money even while getting a greater cut of the gross.
That's correct but it's also due to a difference in the types of licenses they were selling. While Fontspring may not have attracted the same level of traffic as Monotype's portfolio, they excelled in converting visitors into buyers for embedding licenses. Despite the smaller overall volume of sales, a greater proportion were for the more profitable application and web licenses.
For around ten years, Monotype's application licenses were prohibitively expensive for smaller developers, whereas Fontspring offered affordable options for lower-tier application and web licenses. This led to several years during which Fontspring generated higher revenue for me than Monotype, despite the traffic differential.
In recent months, the balance has tipped in favour of Monotype, possibly due to the reduced percentage from Fontspring and the introduction of more attractive MyFonts application license options for small developers. I have also noticed a gradual increase in revenue from Creative Market. Given the current state of affairs, I'm focusing on FontBros for new releases.
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I did think of Type Network as a kind of “collective bargaining” entity with regard to Adobe Fonts. It is undoubtedly helpful for TN partners — although maybe it was just as helpful that Dan and I understood the product and had good relationships there.
Something that will always get in the way is how totally different designer/foundry interests are. Some like discounts, and some hate them. Some like simple licensing, and some want very intricate control. None is right or wrong, just different, and it makes it hard to standardize on licensing or a pricing model or anything else.
I was also glad that TN was generous with its royalties. Things seem to be trending the opposite way now, unfortunately. Of course, even a generous revenue share has its problems (when it results in the distributor not having enough of its own revenue to do what it needs to do), but in theory I think designers deserve a generous cut, and I am pretty sure there can be a sustainable business model that allows that, when everything is done just right.7 -
On the subject of what an association can and cannot do within the constraints of anti-trust laws, the first thing any association or even ad hoc organisation of type foundries certainly could do is to pool resources to obtain legal advice.
Ownership and legal structure will determine a lot, and I suspect Joyce is right that a memberhsip based organisation will not be able to collectively negotiate things like royalty rates. But there are models of incorporation in which foundries would exist as a single legal entity, which I think is what Type Network is (when TN was being started, I had long conversations with Sam Berlow about cooperative ownership models; I don’t know exactly how TN ended up structured).
That said, there is plenty that an organisation could do to help designers and foundries that has nothing to do with collective negotiation or directly with pricing, royalties, etc.. As noted above, providing affordable access to legal advice is one thing; another would be publishing legally and ethically informed critiques of terms of service and contracts; another would be establishing and promoting standards of professional practice. And once a structure is in place, and some things are accomplished, other things would suggest themselves.
A look at what AIGA makes available as resources and their professional standards provides an example of what an organisation can do for an industry without running anywhere near affoul of anti-trust legislation:
AIGA Business & Freelance Resources
AIGA Standards of Professional Practice
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