So it’s basically a “verbal agreement of possibly an “unspoken” understanding. The later is the most dangerous footing of course.
There’s basically two aspects then. The “legal” aspect and the “client relationship” aspect. Depending on what was said or “understood” you could argue that he’s only paid for the DVDs. In that case you could charge him for the masters BUT depending on the price and his sentiments, he may never hire you again. That’s the client relationship part.
He might have no problem parting with some money for masters OR he might argue it was a “work for hire” in which he “owns” the footage. There’s nothing in writing to prove that though.
BTW, you’d be surprised what quality local cable advertising can accept. Certainly he can rip the DVDs you gave him and use the converted footage to re-edit. Then you’d have to decide if you want to fight him on that.
You have to decide if it’s worth the fight vs loosing the client.
I think the smarter thing is to pursue this as offering an ADDITIONAL service. Tell him you can make master quality selects miniDV or DVCAM that will be much higher quality than the DVD. You can then charge for some edit time to make the selects and charge for the dub to miniDV.
If he doesn’t want to go through hours of DVDs or the tape masters to find the shots (and who does), he may gladly pay for you to do this little project for him (selects footage to miniDV). That way he feels like he’s buying an added service and not just the footage.
In other words, if the client feels he’s paying for footage he believes he already owns (rightly or wrongly, he’s unhappy. If the client feels you’re offering an added service for a small fee (after all it is a bit more work) then you make a bit more money. It’s the art of sales. Sometimes being a good sales person is much better for your business then pushing the “legal” button.
Now if this for a Pepsi ad you could push the legal button but they’d likely have the budget for an alternative to your footage. If it’s a local cable spot and you let the folks editing the spot that you were the shooter . . . just maybe you can get a new client if they do more ads like these.