Media Commercial Contracts: Drafting Challenges

Media & Entertainment Law
Media Commercial Contracts: Drafting Challenges

Introduction

Entertainment contracts are unusual because several legal rights often exist within one commercial relationship.

A producer may simultaneously negotiate copyright, performance rights, confidentiality, publicity, payment and distribution.

Rights Should Be Disaggregated

Rather than granting "all rights" without qualification, agreements should identify specific rights, territories, platforms and durations.

Risk Allocation

Warranties and indemnities should be proportionate to the actual risk.

A producer should not unknowingly accept unlimited liability for matters outside its control.

Termination

Contracts should address delayed production, financing failure, regulatory restrictions, performer withdrawal and breach.

Conclusion

Entertainment drafting is ultimately an exercise in anticipating failure.

A good contract does not merely describe what happens when everything goes well. It determines what happens when the project is delayed, cancelled, challenged or commercially transformed.

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