Sunday, December 18, 2011

Clearances For Name & Likeness, Location License, And Life-Story Rights In Motion Pictures And Television: Written By New York Entertainment Lawyer And Film & Television Lawyer John J. Tormey III, Esq.


Law Office of John J. Tormey III, Esq. – Entertainment Lawyer, Entertainment Attorney
John J. Tormey III, PLLC
1324 Lexington Avenue, PMB 188
New York, NY  10128  USA
(212) 410-4142 (phone)
(212) 410-2380 (fax)

Clearances For Name & Likeness, Location License, And Life-Story Rights In Motion Pictures And Television: Written By New York Entertainment Lawyer And Film & Television Lawyer John J. Tormey III, Esq.
© John J. Tormey III, PLLC. All Rights Reserved.

This article is not intended to, and does not constitute, legal advice with respect to your particular situation and fact pattern. Do secure counsel promptly, if you see any legal issue looming on the horizon which may affect your career or your rights. What applies in one context, may not apply to the next one. Make sure that you seek individualized legal advice as to any important matter pertaining to your career or your rights generally.

An entertainment lawyer handling production and rights motion picture work can spend much of his or her time fighting off detractors. One example? It is actually quite common for individuals who incidentally appear in a film or television shot, to later sue or otherwise claim upon the production company or network, asserting violations of their personal or proprietary rights. It is also fairly common for those that believe their life-story in whole or in part has been used or referenced in a film or TV program, to put an adverse life-story rights claim on the motion picture project, even if the reference is but a passing reference. When such a claim is long on bluster but short on underlying legal merit, it is known as a nuisance claim, or “strike suit” if and once litigated.

Entertainment lawyers with a motion picture practice in the U.S. who have worked in Business Affairs or other in-house positions at entertainment companies, as well as most all entertainment lawyer litigators at outside law firms, will confirm all of this. I have served as both, prior to my solo law practice here in New York. One thing you learn quickly in this line of work, is that, while some claims are valid, more people claim more rights in more situations than actually have them.

Film and television producers usually complain to their own entertainment lawyers that the commencement of such a rights nuisance claim is a sleazy thing to do, and the sign of someone watching too many motion pictures with too much time on his/her hands. Often true. Yet the film or TV production can be out time and money by the time that same complaint can be made to the person with the power to dismiss the claim – that is, the judge in the applicable court system. The film or TV producer’s feeling is understandable, unless the person incidentally depicted in the motion picture program is truly ridiculed or hurt in some way. But many Americans use litigation as a sport, and greed is a powerful motivator. There is an entire section of the motion picture entertainment insurance industry and an entire cadre of in-house entertainment lawyers devoted almost exclusively to extinguishing rights nuisance claims and strike suits, often but not always through what is known as errors and omissions (E&O) insurance. Without insurance, even a strike suit can sometimes close a company down.

The first thing an entertainment lawyer does when fielding an adverse film or television claim – life-story, likeness, location, or otherwise - is evaluate the apparent sense and sensibility of the rights-complainant. So, let’s assume that the distinction has already been made between an unstable unfortunate soul who thinks that every successful Hollywood motion picture director is stealing his persona and private thoughts with implanted electrodes and radio waves, on the one hand – versus a person whose full name, likeness, and/or life-story in whole or in part actually appears in an exhibited film or television property. Let’s assume that the entertainment lawyer has reviewed the claimant’s identity with his or her film or TV producer client, and it turns out that the claimant has certain rights and is sane, stable, sympathetic, aggrieved – and unsigned. If the person’s name or likeness or life-story is recognizable in the film shot or in the television script, and no written “clearance” (to wit, signed “license”, “release”, or “agreement”) is in place, then the entertainment lawyer tells the producer of the film or TV production that rights may have been violated thereby and the motion picture production is that much more at risk.

Period.

In reply to the next likely question, the entertainment lawyer next opines that the dollar value at law of the risk or exposure to the rights violation claim cannot be accurately quantified, unless and until the issue is litigated between the aggrieved claimant on the one hand, and the film or TV company (or its insurer) on the other hand.

Period.

These decidedly-fuzzy motion picture law principles even apply to film and television location licenses and related rights, albeit under different legal theories than those corresponding to names, likenesses, and life-stories. As an example, the entertainment lawyer might next ask the motion picture producer to consider the Hollywood Chamber of Commerce that historically has licensed uses of the famous “Hollywood” sign located up on Beachwood Canyon. The Chamber has, at least in the past, asserted rights to claim and sue for unauthorized uses and depictions of the “Hollywood” sign itself - even though the sign is comprised of but a bunch of letters, and rights to letters of alphabet themselves should in theory be public domain and not owned by anyone. In any event, reasonable minds in the film and TV businesses and elsewhere, including as between entertainment lawyers themselves, have differed in the past as to whether there is legal support for these types of “location” rights claims in motion picture practice. Rather than risk it, though, a careful film producer, or television producer or executive producer, usually “clears” depicted locations rather than pay the entertainment lawyer to tell him to clear those (possible) rights post facto after the film or TV project is in the can - or else the producer moves the motion picture shot to a different location if the location license rights “clearance” is too expensive. This is particularly true of the film or TV executive that knows he or she must keep the company’s errors and omissions (E&O) insurance carrier happy and motivated to provide and not cancel coverage. Much of an entertainment lawyer’s detractor-fighting discussed above, includes the creation of alliances with the E&O carriers and their counsel. E&O carrier counsel are sometimes even more rights-sensitive and risk-averse than the motion picture studio or television network Business Affairs in-house counsel are, themselves.

Sure, a film or television producer - particularly one without an in-house or other entertainment lawyer to advise him/her, or an E&O carrier to chastise him/her - can try and fly under the radar on the “incidental use” issue, and hope no rights-violation claims occur. Many producers in fact do try this. But seemingly-incidental shots and uses cannot necessarily be safely assumed to be immune from rights claims. And Murphy’s Law will tell you that someone whose life-story truly appears in a picture in whole or substantial part, will always see it and recognize it. Some of these seemingly-innocuous motion picture uses can in fact turn out to be legally-actionable, and there are plenty plaintiff-side entertainment lawyer litigators out there who seem to be hungry to take on such causes. Even if not legally-actionable, a nuisance claim or lawsuit based on location, likeness, or life-story rights against a film or TV company can still be predicated upon an incidental-shot use in a motion picture, as a practical matter. Even with no supporting legal merit to it, it can still become an expensive headache. In other words, the law is what you read in the casebooks and statutes, but life is what happens out on the street, and rights are often what even undeserving allege until extinguished in a litigation.

Moreover, most of the good film and TV rights and “clearance” stories, though perhaps bandied-about as anonymous and sanitized hypotheticals, never make it to the casebooks. Most of these types of motion picture rights and clearance claims are never litigated, much less revealed by the publication of judicial opinions thereafter. From a film or TV entertainment lawyer defense counsel’s perspective, it is often worth paying the motion picture rights claimant US$2,500 or more, just to go away. Oftentimes, the deductible on the errors and omissions (“E&O”) insurance policy for a film can be at least US$10,000. Sometimes the deductible is even more. (Life-story encroachments and celebrity likeness rights violations can be far more expensive). Therefore, in practice, in the case of an incidental use “passing shot”, the film or TV company, with or without its entertainment lawyer’s advice, may simply pay the rights claimant. The producer may elect to do this rather than (rightfully or wrongfully) even report the claim to the E&O insurance carrier, much less seek coverage on it. Moreover, the E&O carrier will typically not defend against the motion picture rights claim and staff it up with its own defense-counsel entertainment lawyers, unless and until the suit is actually commenced or filed. So it is often the film or TV producer’s or distributor’s exclusive headache unless and until the lawsuit is filed.

The New York statute on point for those in the film and television industries and other media and entertainment industries as well, is New York Civil Rights Law, Sections 50 and 51, a statutory lattice which should be deemed relevant to both name & likeness and life-story rights matters:



If anyone thinks that an individual can’t sue for an unauthorized use of his or her likeness in a motion picture, then that skeptic should read that statute and the cases decided under it. California (Civil Code Section 3344) and most other American states have law similar to New York’s Civil Rights Law 50/51, on the books.

“50/51” and “3344”, are the bread and butter of entertainment lawyers. A private person usually sues a film or TV company on this type of likeness claim, under his or her “right of privacy”, whereas a celebrity usually sues the motion picture company on this type of likeness claim under his or her “right of publicity”. And the best way to evaluate a life-story rights claim is to navigate through a morass of prior case law, or else, better yet, have your entertainment lawyer do it for you.

It’s rough out there. One should obtain signed written rights clearances from those whose names, likenesses, or life-stories recognizably appear in one’s motion picture or TV production. Even a location-depiction claim could tie up a film or television shoot in a worst-case scenario, including that familiar case that many entertainment lawyers have dealt with on an incoming cell phone call when the location-landlord shows up on set 15 minutes before cameras roll and demands more money. When that happens, count your blessings, though. After all, the film likeness rights claimant or life-story rights claimant often doesn’t approach the production company until after the film is in theatrical release, when it is too late to cut the film’s negative.

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My practice as a film lawyer and entertainment attorney includes film and television rights, life-story rights, clearances, location agreements, licensing matters, and other aspects of motion picture development, production, exhibition, and distribution. If you have questions about legal issues which affect your career, and require representation, please contact me:

Law Office of John J. Tormey III, Esq.
John J. Tormey III, PLLC
1324 Lexington Avenue, PMB 188
New York, NY  10128  USA
(212) 410-4142 (phone)
(212) 410-2380 (fax)

Page:
Clearances For Motion Pictures

Title Metatag:
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Friday, December 16, 2011

LLC’s, Corporations, And Other Business Structures - Part I: Written By New York Entertainment Lawyer And LLC Counsel John J. Tormey III, Esq.


Law Office of John J. Tormey III, Esq. – Entertainment Lawyer, Entertainment Attorney
John J. Tormey III, PLLC
1324 Lexington Avenue, PMB 188
New York, NY  10128  USA
(212) 410-4142 (phone)
(212) 410-2380 (fax)

LLC’s, Corporations, And Other Business Structures - Part I: Written By New York Entertainment Lawyer And LLC Counsel John J. Tormey III, Esq.
© John J. Tormey III, PLLC. All Rights Reserved.

This article is not intended to, and does not constitute, legal advice with respect to your particular situation and fact pattern. Do secure counsel promptly, if you see any legal issue looming on the horizon which may affect your career or your rights. What applies in one context, may not apply to the next one. Make sure that you seek individualized legal advice as to any important matter pertaining to your career or your rights generally.

While many artists continue to do business as individuals, there often comes a point in their career when it makes sense to ascend to the next level - to create a business, to create a company, usually in this day and age a limited liability company (LLC) or a corporation, with its own name and identity. In the fields of arts and entertainment, this process is often handled by and through an entertainment lawyer, and is often the first reason for which a new client seeks counsel. If you are an artist who has reached that point in your career, or even if you have already surpassed it and want to revisit your decision, then this article is for you. I am a New York entertainment lawyer who regularly handles corporate and LLC matters and my contact information appears below.

1. Choosing a Name For A New Business

If one is choosing a structure for a small business, there are a number of different types of business entities that can be formed. At minimum, one likely will need to assess the relative merits of the subchapter-”S” corporation (“S-corp”); the subchapter-“C” corporation (“C-corp”); and the limited liability company (“LLC”). This choice will be described in more detail, below, and in Part II and Part II of this Article. But the first issues one should address, also typically addressed with and through one’s entertainment lawyer, are the trademark considerations which may arise as a result of the chosen name for the limited liability company (LLC), corporation, or other form of company.

“Fanciful” (i.e., fictitious) new business names for a limited liability company (LLC), corporation, or other form of entity should be searched as trademarks, especially in fields like entertainment where name recognition can be so important. Entertainment lawyers will routinely search and then issue opinions on proposed trademarks of properties for clients, including trademark-searches on LLC names and corporation names themselves. Why go through this process? Because a new LLC, corporation, or other form of business needs to confirm that no other businesses have prior rights or viable claims to its newly-proposed name (or a name substantially similar to its newly-proposed name). In any event, one may be barred from registering a corporate, LLC, or other business name, if someone else has already registered the same name in the jurisdiction in which the entity-filing is intended. Moreover, if one’s business is intended to ultimately be national or international in scope, as is often the case in entertainment-related and Internet-related LLC’s and corporations, a careful trademark search conducted through one’s entertainment lawyer becomes all the more important. One doesn’t want to invest sweat and equity in a fanciful business name, only to later find out that he or she is legally prevented from using it, or is unable to stop others from infringing on the newly-chosen business name.

Principal owners of a new business do sometimes elect to incorporate or form a limited liability company (LLC) under their own legal and given name (i.e., “John Doe, Inc., or “John Doe LLC”), instead of a fanciful name, in the hopes of saving money that they would otherwise spend on a trademark search through an entertainment lawyer. But there are at least two potential drawbacks to doing so:

Incorporating or forming a limited liability company (LLC) under one’s given name often makes it more difficult to later successfully develop a separate and distinct brand identity for one’s products and services.

Incorporating or forming a limited liability company (LLC) under one’s given name (or even a variant thereof) marginally increases the chances that a court may be inclined to let a plaintiff “pierce” one’s “corporate veil” in a litigation, if the “corporate veil” issue ever arises. “Piercing” means “finding individual economic liability” on the part of the owner/principal. The plaintiff’s argument would be that a self-titled corporation (or LLC) is more likely to be the “alter ego” of its individual principal. Now, although the odds of one’s “veil” being “pierced” may not be that high - assuming that the business owner observes all other corporate or LLC filings and formalities up until that point - the risk of individual liability is still worth mentioning. After all, for many people, the avoidance of “personal liability” and the avoidance of possible “veil piercing” is the whole reason for their incorporating or forming an LLC in the first instance.

What do I mean by “personal liability”? That is probably the most important legal concept that a limited liability company (LLC) owner, corporation owner, or other form of business owner will ever seek to avoid! Please read the next installment of this article.

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My law practice as an entertainment attorney includes incorporations and the formation of limited liability companies (LLC’s), as well as work relating to trademarks and service marks. If you have questions about legal issues which affect your career, and require representation, please contact me:

Law Office of John J. Tormey III, Esq.
John J. Tormey III, PLLC
1324 Lexington Avenue, PMB 188
New York, NY  10128  USA
(212) 410-4142 (phone)
(212) 410-2380 (fax)

Page:
Business Structures - Part I

Title Metatag:
LLC, entertainment lawyer, corporation, limited liability company

Meta Description:
LLC,entertainment attorney,corporation,limited liability company,New York,entertainment lawyer,record label, start-up

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