Terms and conditions for an animation studio

Animation is built in stages that cannot be undone, and the terms have to make each stage a gate: the storyboard, the animatic, the design, then the animation itself. They also have to decide who owns the characters the studio invented, what the voiceover and music licences cover, and what the client may do with the film afterwards. I draft those terms for a fixed fee of £995, delivered in five working days.

Who this is for

Animation, motion graphics and explainer video studios in England and Wales producing films, characters and assets for business clients, agencies and broadcasters. These are business-to-business terms.

What matters in animation studio terms

Stages, gates and approvals

The terms should set the production stages (script, storyboard, style frames, animatic, animation, sound, delivery), require written approval at each gate, and say that changes to an approved stage are charged, because a change to a storyboard after animation has started is a new film. The client's approval times should be stated, with silence treated as approval after a stated period so that the schedule holds.

Characters, assets and ownership

Under the Copyright, Designs and Patents Act 1988 the studio owns the characters, designs and assets it creates until it assigns them. The terms should say whether the client receives an assignment of the film and its characters on payment in full or a licence for stated uses, and that the studio keeps its rigs, tools, templates and unused designs. A client who wants to use a character across future campaigns is buying more than a film, and the terms should price that as a separate assignment.

Voiceover, music and third-party rights

Voice artists, composers and stock libraries license their work on their own terms, usually by use, territory and duration, and a voice artist's performance carries its own rights under Part II of the Copyright, Designs and Patents Act 1988. The terms should say what is included, that broadcast, paid advertising or extended use may need further licences at the client's cost, and that the client is responsible for the accuracy of the script and any claims in it. A voiceover licensed for online use is not licensed for television.

Revisions, formats and acceptance

The terms should include a stated number of revision rounds at each stage with further rounds charged, define the delivery formats, resolutions and versions included, and say when the film is deemed accepted. Translations, subtitles, alternative cuts and localisation are separate deliverables and should be priced separately or excluded.

Fees, timetable, liability and portfolio

Fees are staged and invoiced at milestones with interest and fixed compensation on late payment under the Late Payment of Commercial Debts (Interest) Act 1998 and a right to pause. The timetable moves with the client's approvals. Liability should be capped at a figure matching the studio's insurance, with consequential loss excluded, tested for reasonableness under the Unfair Contract Terms Act 1977. The studio should keep the right to show the work in its portfolio and to enter it for awards.

What it costs

Customer or supplier terms and conditions, £995. One set of terms, customer-facing or supplier-facing, drafted for your business. Five working days.

Review of your existing terms, £495. You already have terms and want them checked and brought up to date. Returned marked up with my amendments and an explanation of the changes. Three working days.

Buying online forms the engagement on payment. The scope is what the terms and conditions drafting page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• A full set of bespoke terms drafted for your business, reflecting the legal requirements that apply to your business and sector
• A note in plain English explaining the terms I have drafted for you
• Liability, payment, termination and IP provisions that protect your position and are drafted to withstand scrutiny from the other side
• Guidance on how to incorporate the terms properly
• Your questions and comments answered by email or phone
• One round of amendments to finalise the terms ready for use

What is not included

• Negotiating your terms with individual customers (I am happy to quote for this as an additional service if required)
• Sector-specific regulatory compliance beyond the contract terms themselves
• Website privacy notice and cookie compliance, which I quote separately
• Terms governed by the law of another country
• Tax advice

Questions I am often asked

The client approved the storyboard and now wants a different ending after animation. What can we charge?

If the terms treat changes to an approved stage as new work, the re-animation is charged at the studio's rates. The approval record is what makes that fair.

Does the client own the character we created for their explainer?

What the terms say. If the client receives a licence of the film for stated uses, the character remains the studio's; if the client wants to own the character, the terms should provide an assignment at a price.

The voiceover artist says the film cannot go on television. Are we liable?

If the terms say voiceover licences cover the uses stated and further uses need further licences at the client's cost, the client should have asked for a broadcast licence. Say what the licence covers in the proposal.

Related guidance and services

• Terms and conditions drafting, £995, the service this page describes
• Contract review, £495
• Terms and conditions for a video production company
• Terms and conditions for a branding and design agency

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: September 2026. Email geoffrey@caesar.co.uk.