Michele, I'm aware of the copyright vs. privacy issue, but from some things I've read it looked as though you could include language in your release which would permit use of the image for general trade purposes. Otherwise you couldn't sell any figurative painting of a recognizable person either in its original form or as a copy. The language I use is this, in part. Note that this isn't a contract, it's a release.
Quote:
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I grant permission for the Artist to use reproductions of the Work in promotional material or brochures, for entrance in competitions, and for advertising, trade, or any other lawful purposes, without violation of my rights of privacy or any other personal or proprietary rights I may possess in connection with reproduction of the Work. I have read this release and am fully familiar with its contents.
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Above that paragraph the release notes that while the client has physical possession and ownership of the work, all rights of reproduction belong to the artist and neither the original work nor any reproductions can be altered in any way. I think the wording comes from one of the books on legal contracts for artists.
Leslie