Showing posts with label Legal. Show all posts
Showing posts with label Legal. Show all posts

The Importance of Contracts

I don’t think any aspect of the entertainment industry scares me more than the legal part. It’s simple enough to create work and then sell it, but in order to make the best work possible, you have to work with other people. And naturally, if you’re working with other people, you have to make agreements, and expect the other parties to stay true to those agreements. Unfortunately, it seems whenever I look up, I see such agreements falling apart.

Near the end of 2012, YouTube’s most famous star, Ray William Johnson announced he was leaving his network, Maker Studios. Eight months before his contract expiration, he was asked to renegotiate the terms of his contract. Maker wanted 40% of his Google Adsense revenue and 50% of the show’s intellectual property indefinitely. Eventually Maker said they would shut down the production of his album, leading to his decision to leave the company.

In 2009, three members of Korean pop group TVXQ began a feud with their label, SM Entertainment, and the lawsuit didn’t end until the end of 2012. The three members, now under a different label as JYJ, filed their case against SM because they felt their thirteen-year contract was a “slave contract.” Though Korean court allowed the three to continue activities, the Korean entertainment industry banned JYJ from public media appearances. As of November 2012, the two parties have reached a settlement and the JYJ ban is over.

It would appear that contract disputes in Korean pop are not unusual. Just this month, Block B filed a request to terminate their exclusive contract with their label, Stardom. Apparently, they’ve faced troubles similar to TVXQ’s. It’s reported that Stardom has failed to meet the obligations outlined in their contract, including but not limited to denying the group their fair pay. Since this story is brand new, hot off the press, there has not yet been anything close to a resolution.

Stories like the above are not unusual. Contracts must be taken very seriously and written very carefully. I plan to take very special care of the human relationships within my YouTube channel by preparing very structured, fair, clear, and sensitive contracts.

Contract Negotiations

In the past couple years, YouTube has changed a great deal. There was a time when it was a free for all, and anyone who had some content could slap it online and show the world. The abundance of content (much of which being illegal) forced YouTube to adjust the intense pressure on its engines. This led to the partner program. In April, when everyone had the power to be a partner, the age of networks officially began.

Now, networks can offer creators things that YouTube no longer can, such as music licensing, protection (from things like click-bombing), and promotion. Naturally, all these things come at a price, so networks are constantly looking for content creators to sign. Now, more than ever, it has become vital for content creators to learn how to protect themselves.

For this reason, I poked around online for advice about contract negotiations. First, I listened to “Business English Pod :: Learn Business English Online.” The two episodes I listened to focused on a staged negotiation between a business owner, Sam, and a representative of a vehicle leasing company, Larry. The first podcast focused on the art of seeking concessions – how do you make sure that your interests are protected? In order for Sam to protect his interests, which in this case was not being charged too much for mileage, he referenced objective criteria by pointing out a competing company that gave him a better deal. This kind of objective criteria was sewn into a careful use of language that was more based in suggestions than demands. This is an address of the “people problem,” which is that people have emotions that play a part in negotiations.

The second podcast focused on the “fine print.” Sam and Larry discussed warranty terms and response time for service. The podcast stressed that the contract should address specifics about who pays for what when, and who does what when. While in the first podcast, Sam addressed the people problem with suggestions, in this podcast, he addresses it by setting a positive tone with the phrase “I like where this is going.”

The third podcast I listened to was Salary Talk. Linda Babcock, a professor of economics who specializes in dispute resolution and negotiations, came on the show to discuss her book, Women Don't Ask: The High Cost of Avoiding Negotiation. In the discussion, some disturbing points from studies were brought up. For example, men are four times more likely to negotiate their salaries than women are. Also, 85% of men polled believed they determined their own worth, while 83% of women believed their worth was determined by their employer. Babcock said that women are more likely to be apprehensive about negotiations because of what culture taught them growing up, and they can alleviate that stress by being properly prepared before entering a situation in which they must negotiate.

When looking into networks for my content, I will keep all of the above in mind. I need to protect my interests while being willing to make concessions, and I need to maintain the position that I define the value of my work and my content.