Unlocking the Secrets of Font Licensing: What Designers and Marketers Need to Know

Typefaces and fonts are crucial in establishing a powerful brand identity, creating visually appealing websites, and producing professional marketing materials such as flyers, brochures, and company documents. However, there is a great deal of confusion on how designers and marketers can legally utilize them in commercial projects. If a font is labelled as “free,” is the usage of that font completely free of charge? Misuse of such “free” fonts has caused many headaches in businesses. This article will examine the boundaries of font protection and how to remain within the boundaries so that your commercial plans are not compromised.

Copyright Protection of Fonts 

Before we delve into font protection, it is essential to understand the difference between two terms that are often used interchangeably: typeface and font. A typeface is a collection of fonts that share a visual design. Some examples of common typefaces include Arial, Times, and Helvetica. Within a typeface, there can be different variations including bold or italic. The variation within the typeface is a font. For example, within the Arial typeface, we can choose to use the 12pt Arial Bold as the specific font. The font refers to a specific style of the typeface or the computer software that determines how the letters or characters are displayed.

Given that fonts are a type of software, they are protected under Indonesian Law No. 28 of 2014 on Copyright (“Copyright Law”) as a computer program. This protection ensures that font creators maintain exclusive rights over the distribution and use of their fonts, including the requirement for the users to obtain appropriate licenses from the creators to use them legally. With a clear understanding of how fonts are protected under Copyright Law, it is essential to examine the specific terms and conditions that govern their use which are typically found in “font licensing agreements.”

Font Licensing Agreement

One of the most common types of font licensing agreement is the End-User License Agreement (“EULA”), and it dictates the parameters of use by the end user. Other than costs, the EULA specifies terms related to the handling of the software (font) and legal obligations of the parties. Typically, the key terms of the EULA will include:

1. License Grant: whether the license is for personal or commercial use, the number of devices it can be installed on, and any restrictions.
2. Usage Restrictions: Defines what the user is not allowed to do with the software, such as reverse engineering, redistribution, or modifying the product.
3. Intellectual Property Rights: Defines the copyright ownership of the font.
4. Payment Terms: Details the cost of the usage of the font, subscription fees, and any additional charges. 
5. Termination Clauses: Specifies the conditions under which the license may be terminated, including breaches of the agreement or non-payment.
6. Liability Limitations: Limits the liability of the software provider in case of damages or issues arising from the use of the product.
7. Dispute Resolution: Sets out the process for resolving disputes.

Non-Compliance with the EULA

Non-compliance with the EULA is simply a breach of contract. If you are not a party to the EULA, based on the Copyright Law, unauthorized use of a font can result in a claim for copyright infringement. In such cases, the creator or copyright owner can pursue legal action against the user, leading to financial penalties and/or criminal sanctions. 

Apart from legal consequences, breach of the EULA or using a font without a properly negotiated EULA could damage a company’s reputation. This negative perception can affect future partnerships and consumer trust. Additionally, the financial stability of the company could be compromised due to fines and the potential need for redesigning and replacing marketing materials.

Conclusion

Few things in this world are truly free. When dealing with fonts that are marketed as “free,” it is crucial to have a thorough understanding of the limitations within the licensing terms. Misunderstanding these terms can lead to significant legal consequences and reputational risks. In navigating these complexities, an ounce of prevention will far exceed a pound of cure! Our legal experts at K&K Advocates are just one call away, ready to support your company in ensuring full compliance with EULA terms and confirming that you are using authorized fonts. Protect your business and its reputation by making informed decisions about font usage. (SHJ)

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