You know, I have thought long and hard on the idea of No Spec!, and their process. I must say I honestly feel it is a 2 edged sword. In my opinion, proper protection can be set up with a basic contract and a reasonable kill fee. Straight up, "Pay me my normal fee or move along." only serves to handicap a designer in the world of corporate players. Yes, a company might have millions of dollars or be gaining millions of dollars from your work, what makes that your business? As an art director I make sure that all contracts include a kill fee that I have the option of invoking after 3 revisions that is equal to 25% of the original fee. Honestly tho, I feel invoking a strictly no spec outlook is only going to drive companies to look overseas. Actually, I don't have to "feel" that way, I know it to be true because I've done it before to ensure a project comes in under-budget and on time.
When I freelance I do entertain the idea of a spec job, but my contracts specifically states several things ...
1. If the kill fee is invoked it is legally the same as the company telling me I have a right to use their trademarks in my portfolio for a undefined period of time. If I get nothing else besides the kill fee, at least I get the right to use real company names in my portfolio.
2. A kill fee of a min. of 25% of the original estimate/budget. Able to be invoked after 3 revisions (by myself, or my client)
3.The client has no rights to ask for, or maintain on file, digital and/or hard copies of the presented work.
4. My logo must be allowed on the item if for public consumption (ie. catalog, packaging, etc.) Failure to comply incurs a penalty of up to 25% of the original estimate/budget payable within 7 days of being notified in writing.
5. (now this is the one I hate, and I usually DON'T, but I include it to protect myself) If the client requests editable files they are asking for a copyright release and it is subject to a 40% fee of the original estimate/budget if requested after approval/use of provided graphics. If they want this up front I include it in the estimate. But it usually amounts to 100.00-500.00 depending on the size of the job.
This contract was written by myself when I was just a wee designer, and Im reading some new books on the subject so I'll probably have my lawyer rework it some in the near future. It's probably nowhere near iron-clad. I might be a stickler on somethings too, I even have acceptable contact methods and times in the contract. Had those added when I had a night owl client who felt it OK to call at 3am.