A rights-managed (RM) license is one where specific, defined reproduction rights are granted to the client, usually limited to a set period of time. A RM license will typically comprise a package of defined usage rights specifying size, media, purpose (eg editorial, promotional, advertising), and duration of the agreement.

The advantage to the photographer is that they retain precise control over how and where and for how long the image is used. If the client subsequently requires other uses they must be negotiated as additional license terms.

The disadvantage to the photographer is that RM licenses are necessarily modular and complicated to price. This complexity makes RM somewhat offputting to clients and especially hard to formulate automatically for online sales (although the PLUS! initiative has devised a pricing matrix to simplify this).

The advantage to the client is that they buy only the rights they need, keeping cost to a minimum. Further, exclusivity is possible and may be guaranteed via RM terms.

The disadvantage to the client is that further usage beyond the licensed terms will incur further negotiation and fees. Usage requires active monitoring and management by the client, who risks infringement by usage outside the terms. There is also a concern that they may be 'held to ransom' for license extensions, although this may be avoided by prior agreement of prices for possible expanded usage in the future.