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Title to the artwork passes to the client or commissioning agency/organization upon their written acceptance of and payment for the work, but copyright belongs to and remains with the artist.
Yes, an illustrator can claim copyright on their illustrations unless there's a specific agreement stating otherwise. This agreement is often outlined in contracts between authors and illustrators.
Licensing, sometimes referred to as Usage or Rights, is an agreement between the Illustrator (Licensor) and their client (Licensee). The agreement allows the Licensee to use the illustrated work (the Art) in a commercial capacity. In plain English: You allow your client to use your illustration in exchange for payment.
An illustration is a decoration, interpretation, or visual explanation of a text, concept, or process, designed for integration in print and digitally published media, such as posters, flyers, magazines, books, teaching materials, animations, video games and films.
An example of a licensing agreement in the restaurant space would be when a McDonald's franchisee has a licensing agreement with the McDonald's Corporation that lets them use the company's branding and marketing materials.
An Exclusive Licence means that no person or company other than the named licensee can exploit the relevant intellectual property rights. Importantly, the licensor is also excluded from exploiting the intellectual property rights.
At a minimum any agreement should include; the fee, the deadlines for the roughs and finished artworks, and the licence (where, how and for how long you will reproduce the work). The illustrator will submit roughs for your consideration ? these are usually pencil drawings showing the composition and characters.
Every illustration you create is your property ? you own it, you are the copyright holder. You can give permission for other people to use the illustration for free or for money, or you can sell the entire copyright. It is yours to do with what you want.