Artificial intelligence
Customer & Marketing
The growing use of AI-generated images is upsetting the traditional remuneration model for models and talent. In traditional productions, remuneration consists of a shooting fee and a transfer of rights limited in time and by territory. With AI, a single shoot can generate hundreds of pieces of content, and the line between creation, retouching and reproduction becomes blurred. Zalando continues to pay models for the creation of their avatars, but no longer needs to book them for each outfit. H&M is considering allowing models to own and monetize their Digital Twins. It is therefore crucial to define a clear scale for “synthetic rights”.
Several variables can be taken into account:
Type of use: advanced retouching (enhancement of the original image), partial generation (addition of elements), complete creation of avatar or synthetic video.
Volume of releases: number of images or videos created from the same avatar. A perfume brand producing 500 visuals for social networks should not pay the same rate as a fine jewelry brand generating only a dozen exclusive visuals.
Duration and territory: worldwide distribution for two years for a watch campaign? Local use for a make-up launch? These parameters remain relevant.
Level of resemblance and transformation: the closer the content is to the model’s actual appearance, the greater the image rights. Stylized or transformed clones may be priced differently.
Exclusivity: an avatar used by a single jewelry brand will be more valuable than one available under multiple licenses.
Setup fee: this fee covers the 3D scan, model training and delivery of an avatar validated by the talent. It is comparable to a premium shooting fee.
Usage fees: invoicing based on the number of images or videos generated. For example, a perfume model could charge one euro per image generated for e-commerce, and 200 euros per promotional video.
Subscription licenses: for fashion or cosmetics brands wishing to create a high volume of images over a long period, an annual subscription entitles you to a certain number of images/videos generated.
Limited buy-out with step-up: buy out all rights for a high price, with a step-up clause providing for a top-up if the brand exceeds a certain volume or extends the campaign to new channels.
Revenue sharing: for stars or muses whose fame generates direct sales (perfumes, luxury watches), a percentage of sales attributable to the campaign can be added to royalties.
The proposed rates must be compatible with current legislation. The FWA prohibits contracts longer than three years, and requires separate approval for each use. California law invalidates clauses allowing the use of a digital replica without explicit consent and legal representation. Contracts should therefore limit duration and require periodic renegotiation. In addition, the French and European authorities are planning to incorporate proportional royalties into future regulations (AI Act), along the lines of the neighboring right in music.
Fashion, cosmetics, fragrance, watch and jewelry brands will need to integrate these new scales into their budgets. The savings achieved through AI (up to 70% cost reduction) must not come at the expense of talent and creative teams. The adoption of clear scales helps to secure relationships and perpetuate collaboration. Houses can also promote their ethical commitment to consumers, who are increasingly aware of the importance of fair remuneration for artists. As an intermediary, the Elite agency will be able to develop expertise in synthetic rights pricing, propose adapted packages (fashion vs. perfume vs. jewelry) and advise its clients on the economic opportunities of AI.
Finally, these scales must remain flexible. AI is evolving rapidly: video generation capabilities are improving, brand needs are diversifying. Innovative business models may emerge, such as micro-licensing for augmented reality or virtual fitting campaigns. Elite and its partners must be ready to adjust rates according to actual usage, consumer feedback and new regulations.