I have a potential new client who is having difficulties leaving the web company who created his current site. He made the decision to leave him as he wasn’t carrying out work he had promised to do despite reminders over a period of a few months. He also informed me that the said company have had their designer leave as he wasn’t getting paid. The company have informed this potential client that he must pay a release fee even though this is not stated in the Terms and Conditions.
My question is, can he legally ask for this release fee, particularly in the light that he hasn’t completed work required by the client? I am of a mind to advice him to seek legal advice.
Below is the reply he received:
"The final release fee is something I only ever envisaged charging if a client left us within the first 3 years of having their website designed. A client staying for three years helps to subsidise the cost of your original site, which you said to me you would be running for the next five years or so. The original quote was based around this information. You are the first customer to leave within the first 3 years, and seeing as my other customers have been with me for longer than this, it does not apply to them. If your site was to be designed and supplied on disc, it would have been double the cost. So it turns out what you are suggesting actually leaves me short, not the other way around.
All web design companies work differently, and the price I charged was a fraction of what we normally charge as your work is charity based. If you had gone elsewhere to have you website designed and hosted, it would have likely cost you much more for the same quality of work.
Name Removed"
I would appreciate any advice I could pass on to him as he is getting a bit upset by the whole affair.
Sounds like a desperate grab for cash by the web company. If any work was completed by web company then they can expect payment for that amount of work, but since work was not completed they cannot expect full amount unless stipulated in contract what terms are. If project deadline was in writing then that project was to be completed by a certain date. If that wasn’t met then client has valid argument not to pay full amount. If only verbal then it’s client’s word against theirs.
If this “release fee” was mentioned in any writing in documents or contract that client signed then i’m afraid they are stuck with it. If not, then web company can kiss your client’s A**… uh, can kiss your client goodbye.
Your suggestion of legal counsel may be necessary.
The client has already paid for the site over a year ago and just recently a £100 annual fee - which supposedly is for continued hosting. What the client is asking for is ftp access so he can download all the files prior to transferring to new hosting it seems that this is what the company are wanting to charge a release fee for. They are also refusing to give him access to a control panel. It seems to me that he is being unfairly treated since he has already paid for the site and it’s hosting.
If it’s not in a signed contract then there’s no basis for charging or
enforcing an exit fee. If the service provided has not up to scratch
the client could demand a refund of fees previously paid - if
necessary through the Small Claims court. Whether the client can
demand copies of files - either for a fee or not - is another matter,
though. Again, it’ll depend on any contactural agreement.
I would see the main point here is who owns the design/code copyright, and this should have been agreed “before” the work began.
If the web company (the site creator) owns the design/code they are not under any obligation to supplying this to the client free gratis, or even at all. They could tell them to go jump.
Paying for the work does not assign copyright. Copyright has to be assigned in writing to the client. So if a release fee is made make sure they assign copyright to be safe.
(tough yes, but it also help us web design users protect our work that is so easily copied)
Paying for the work does not assign copyright. Copyright has to be assigned in writing to the client. So if a release fee is made make sure they assign copyright to be safe.
This is true. If ownership of design wasn’t established then designer owns original rights. But domain control is another matter. If client owns the domain then they can move it to any host they wish, but if client does not own copyright of web site materials then he needs to start over.