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•
•••
Acknowledgments 111

Preface v
••
About the Author VII

CHAPTER 1
FILM

§1.01 Introduction 1

§1.02 The Life Cycle of a Film 2

[1] Production 2
[a]-Development 2
[b]-Pre-Production 3
[c]-Principal Photography 3
[d]- Post-Production 3
[e]-"Final Cut" 3
[fJ-Prints and Advertising 4
[2] Marketing Windows 5

§1.03 Project Inception 5

[1] Idea Submission 5
[2] Non-Disclosure Agreements and Releases Respecting Ideas 6
[3] Protection of Ideas via Contract: Desny v. Wilder 6
[a]-California 6
[b]-New York 7
[4] Projects Based on Preexisting Material: Book Option Agreements 8
[5] Life Story Rights and Depiction of Real Persons 10
[a]-Appearances by Actual Persons 12
[i]-Documentary Films, Including Hidden Cameras 12
[ii]-Feature Productions 14
[iii]-Persons Filmed in Public Places 16
[iv]- Depiction of Automobile License Plates in Documentary and Reality Productions 17
[b]-Portrayal of Real Persons by an Actor & Life Story Rights Agreements 17
[c]-Fictionalized or Composite Characters 19
[d]-Mere Mention of Persons 20
[e]-Libel-Proof Plaintiffs 20
[fJ-Disclaimers 20

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[6]-Copyright in Characters 21
[?]-Screenplay Acquisition 25
[a]-WGA "Blueprint" for Screenplay Acquisition 26
[b]-Writer Deal Memos 26
[c]-Separated Rights: Publication and T heater Rights Retained by Screenwriters 27
[d]-Passive Income 27
[e]- Non-WGA Agreements 28

§ 1.04 Film Financing and Net Profits 28

[1]-Revenue Phases 29
[a]-Box Office Revenue Retained by Theaters 29
[b]-Revenue Retained by the Distributor 30
[c]- Gross Revenues Received by the Studio or Production Company 30
[d]-Net Profits 30
[2]-Sources of Film Financing 32
[a]-Studio Financing 32
[i]-Studio as Financier 32
[ii]-Production-Financing-Distribution (PFD) Agreements 33
[b]-Pre-Sales and Lender Financing 33
[c]-Negative Pick-Up 33
[d]-Gap Financing 33
[e]-Investor or "Equity" Financing 34
[i]-Private Placement Offerings Under SEC Regulation D 34
[ii]-Formation of a Production Corporation or Limited Liability Company 35
[iii]-Crowdfunding 38
[fJ-Co-Financing 39
[g]-Slate Financing 39
[h]-Completion Guarantee 39
[i]-Assumption of Union and Guild Contractual Obligations 39
[3]-State Tax Incentives 40
[4]-Profit Participation 41
[a]-Net Profit Definitions 42
[b]-Alternatives to Net Profit Participation 44
[i]-Deferred Compensation 46
[ii]-Box Office Bonuses 47

§1.05 Agreements with Talent 47

§1.06 Loan-Out Corporations and Letters of Inducement 48

§1.07 Preliminary Verbal Agreements 51

§ 1.08 Written Agreements 51

[1]- Directors 52
[a]-The DGA 52
[b]-Leading Cases Involving Directors' Rights 52
[i]-Authorship Rights Under the Copyright Act and the Lanham Act 52
[ii]-The Ownership and Scope of Uses of a Director's Film 53
[iii]-Excessive Edits by a Studio and the Director's Screen Credits 54
[iv]-DGA Enforcement of the Bargaining Agreement 54

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[2J-Actors 55
[a]-SAG-AFTRA Global Rule One 55
[b]-T aft Hartley Act 55
[c]-The Seven Year Rule 56
[d]-Contractual Disputes With Talent 56
[3J-Child Actors 56
[a]-Court Approval of Entertainment Contracts with Minors 57
[b]-Coogan Accounts 59
[c]-Child Labor Laws Applicable to the Film Industry 59
[4J-Animals 60
[SJ-Screen Credits 60
[a]-"Written by" (Writer Credits) 61
[b]- "Directed by" (Director Credit) 62
[c]-"Produced by" (Producer Credit) 63
[d]-"Executive Producer" Credits 63
[e]-Actor Credits 64

§1.09 Residuals and Foreign Levies 64

[1J-Residuals 64
[2J-Foreign Levies and Foreign Royalties Payable Directly to Creators 65

§1.10 Agreements with Production Crew 65

§1.11 Music in Film and Television 66

[1J-Licensing 66
[a]-Master License for Sound Recordings 66
[b]-Synchronization or "Sync" License for the Musical Composition 66
[c]-Production Libraries 67
[2J- Commissioned Scores 67

§1.12 Production Issues 69

[1J-Budgeting 69
[2J-Errors and Omissions Insurance 70
[3J-Location Agreements 70
[4J- Film Clearances: Titles, Depiction of Third-Party Copyrights and Trademarks 72
[a]-Film Titles 72
[i]-The MP AA T itle Registration Bureau 72
[ii]-Trademark Protection for Titles 73
[b]-Third-Party Copyrights 74
[c]-Third-Party Trademarks 76
[d]-Documentary Films 78
[i]-Leading Documentary Film Fair Use Cases 78
[ii]-Documentary Filmmakers' Statement of Best Practices in Fair Use 80
[SJ-Product Placement and Brand Integration 81
[a]-In General 81
[b]-Government Regulation 82
[c]-Depiction of Tobacco Products 83
[6J-Film Ratings 83
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§1.13 Distribution Agreements 84

[1]-Independent Films and the Role of Film Festivals 85
[2]-Theatrical Distribution 86
[3]-Sales Agency 88
[4]-0verseas Television Distribution of Independent Films 88

§1.14 Representation of Talent 88

[1]-Talent Agents 90
[a]-Agency Packaging 92
[b]-California Labor Commissioner Jurisdiction for Disputes Under the TAA 92
[c]-SAG-AFTRA and Agency Agreements 93
[d]-New York Regulation of Talent Agents 93
[2]-Personal Managers 94
[a]- Personal Management Agreement Deal Points 97
[b]-The SAG-AFTRA Personal Manager Code of Ethics and Conduct 99

§ 1.15 [1] Appendix: The Film Production Pyramid 101

§1.16 [2] Appendix: Copyright Fair Use Fundamentals for the Film Industry 101

§ 1.17 [3] Appendix: Copyright Ownership Fundamentals

Including Works Made for Hire and Co-ownership 106
[1]-0wnership by the Author or Authors is Automatic upon Creation 106
[2]-Works Made for Hire 106
[a]-Works by an Employee 107
[b]-Specialty Ordered or Commissioned Works 107
[i]-Agreements for Specially Commissioned Works Made for Hire 108
[ii]-California Labor Code§ 3351.5 109
[c]- Work Made for Hire Status for Freelance Contractors Under the 1909 Copyright Act
Compared to Under the 1976 Act 110
[3]-Co-Ownership 110

§ 1.18 [4] Appendix - Duration of Copyright 112

[1]-Works Published Prior to January 1, 1978 That Are Not Works Made for Hire 112
[a]-The First T erm and the Renewal Terms T otaling Fifty-Six Years 112
[b]-The Nineteen-Year Extension 112
[c]-The Twenty-Year Extension 112
[d]-Works Created but Not Published as of January 1, 1978 113
[2]-Works Created On or After January 1, 1978 Other Than Works Made for Hire 113
[3]-Works Made for Hire 113
[4]-Renewal 114
[5]-The Public Domain 114
[a]-Expiration of Copyright Protection 114
[i]-Post-1978 Works 114
[ii]-Pre-1978 Works 115
[b]-Publication Without Notice Prior to 1989 115
[c]-Copyright Restoration for Certain Foreign Works 115

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CHAPTER 2
TELEVISION

§2.01 Television: Introduction and Overview 117

§2.02 Terrestrial Broadcast and The Original Big Three Networks 118
[1]-Network Technology Platforms 118
[2]-Network Business Models 118
[3]-Network Production Business Model 118

§2.03 Cable and Satellite: Multichannel Video Program Distributors (MVPD) 119
[1]-MVPD Technology Platforms 119
[2]-MVPD Business Models 119
[3]-MVPD Broadband Services 119
[4]-MVPD Production Business Models for Cable Networks 120

§2.04 Internet and Mobile Platforms Offering

Subscription Video On Demand (SVOD) 120
[1]- SVOD Technology Platforms 120
[2]- SVO D Internet Platform Business Models 120
[3]-SVO D Internet Production Business Models 120

§2.05 The Traditional Network Prime Time Pilot to Series to Syndication Model 121
[1]-Pilot Episode 121
[2]-Series Order and License Fees 121
[3]-Imputed License Fees 121
[4]-Syndication 122

§2.06 The Financial Interest and Syndication (''Fin-Syn'')

Consent Decrees Era 1970-1995 122
§2.07 Traditional Network Production Agreements 123

§2.08 SVOD Business Models 124

§2.09 SVOD Production and Talent Guilds 125

§2.10 Public Broadcasting 126

§2.11 FCC Regulation of Broadcasters 126

§2.12 Advertising and Ratings 127

§2.13 Liability Review 128

§2.14 Episodic Television Business Models 128

§2.15 Pilot Episode Agreements 129

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§2.16 Deficit Financing of Episodic Television 132

§2.17 Unscripted ''Reality Television'' 134

[1]-Format Rights and Production Issues in ''Reality Television'' 136
[2]-Unscripted Television Participant Agreements 139
[3]-The Scope and Enforceability of Participant Releases in Reality Television 140
[4]-Child Labor Laws in the Reality Television Industry 143

§2.18 Event Programming 144

§2.19 Time-Buy Programming 145

§2.20 Online Fan Fiction Video Productions 146

§2.21 Television Series Showrunner Agreements 148

CHAPTER 3
BOOK AND MAGAZINE PUBLISHING

§3.01 Introduction: Publishing, Technology, and the Law 151

§3.02 Book Publishing Agreements 152

[1]-Introduction 152
[2]-The Operative Grant 152
[a]-Exclusive License or Assignment of Copyright 152
[b]-Works Made for Hire 152
[c]-Book Formats 154
[3]-The Work Defined 155
[4]-Territories 155
[SJ-Term 155
[6]-Advance Against Royalties 156
[?]-Delivery and Acceptance of Manuscript 157
[SJ-Proofreading and Corrections 158
[9]-Publication 158
[10]-Promotion 158
[11]-Author Copies 159
[12]-Copyright and Credits 159
[13]- Royalties 159
[a]-Domestic Royalties 159
[b]-Foreign Royalties 161
[14]-Subsidiary Rights 161
[a]-Rights Granted to the Publisher 162
[b]-Rights Reserved by Author 162
[15]-Audio Rights 162

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[16] Use of Third-Party Materials 163

[17] Statements of Account and Audit Rights 163
[18]-Competitive Works 163
[19] Next Publication Option 164
[20] Inserts, Back-of-Book Advertising 164
[21] Remainders 164
[22] Out of Print and Reversion 165
[23] Warranties and Indemnification 166
[24] Agency 166
[25] Ghostwriters 167

§3.03 Self-Publishing and ''Vanity Press'' Agreements 168

§3.04 Acquisition of Author Rights in Magazine
and Newspaper Publishing 168

§3.05 Translations and Other Overseas Rights 170

§3.06 Agreements Between Authors and Literary Agents 171

[1]-Scope of Representation 172
[2]-Term 172
[3]-Commission 172
[4]-Disbursements 172
[5]-Expenses 172
[6]-Powers of the Agent and Communications 172
[?]-Accounting, Statements, and Audits 173
[SJ-Termination 173
[9]-Dispute Resolution 173

§3.07 Copyright in Quotes and Journalistic Interviews 173

CHAPTER 4
MUSIC

§4.01 Introduction 175

§4.02 Copyright Ownership in the Music Industry 175

[1]-The Underlying Musical Composition 176
[2]-The Sound Recording 176

§4.03 The Six Exclusive Rights Under Copyright 177

[1]-Reproduction 178
[2]-Derivative Works 178

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[a]-Derivative Works in the Music Industry 178

[b]-Creating Derivative Work Musical Arrangements in Connection with Sound Recordings 179
[3]-Distribution 179
[4]-Public Performance 180
[a]-Performing Rights Societies 180
[b]-Types of Licenses 183
[i]-Blanket Licensing 183
[ii]-Direct Licenses 183
[iii]-Source Licenses 183
[iv]-Per-Program Licenses 183
[c]-Direct Royalty Payments: Author Share and Publisher Share 184
[d]-Exceptions for Grand Rights 184
[e]-Registration of Works with Performing Rights Societies 184
[fJ-Limitations to the Public Performance Right 185
[g]-Movie Theatres 186
[h]-Foreign Performances 186
[i]-ASCAP and BMI Rate Court Rulings on Digital Media Rights and Pandora Radio 186
[j]-Assignment of the Writer Share of Performing Rights Royalties 187
[5]-The Display Right 188
[6]-Digital Performance Rights in Sound Recordings 188
[a]-Types of Webcasters 189
[i]-Commercial Webcaster/Broadcast Simulcaster 189
[ii]-Noncommercial Webcaster 189
[iii]-Preexisting Subscriptio11 Service 190
[iv]-Preexisting Satellite Digital Radio Service 190
[v]-Business Establishment Service 190
[b]-Types of Uses for Digital Performing Rights for Sound Recordings 190
[i]-Non-Interactive Streaming 190
[ii]-Interactive or On-Demand Streaming 191
[iii]-Digital Phonorecord Deliveries 191
[7]-Licensing Procedures 192
[a]-Filing of Notice 192

[b]-Reporting Requirements 192

§4.04 Mapping the Copyright Coordinates 193

§4.05 Mechanical Licensing 193

[1]-Digital Distribution and Mechanicals 196
[a]-Digital Phonorecord Deliveries 196
[b]-Limited or "Tethered" Downloads 196
[c]-Streaming 197
[d]-On-Demand or Interactive Streaming 197
[e]-Ringtones 197
[fJ-New Categories of Online Services 197
[2]-Licensing Procedures 198
[3]-lmportation 199
[4]-Broadcast Mechanicals Paid Outside the United States 199

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§4.06 Synchronization (''Sync'') License 199

[1]-Synchronization Licensing Steps 200
[a]-Identify the Publisher 200
[b]-Sync Licensing Concepts from the Publisher's Perspective 201
[i]-Promotional Value 201
[ii]-Related Performing Rights Income 201
[iii]-Scope of Use 201
[iv]-Step Deals 202
[v]-Author Approvals 202
[vi]-Most Favored Nations 202
[vii]-Cue Sheets 203
[viii]-N on-Exclusivity 203
[ix]-Credits 204
[x]-License Fees 204

§4.07 Ephemeral Rights 205

[1]-Television Broadcasts 205
[2]-Digital Transmission of Music 206

§4.08 Master License for the Sound Recording 207

§4.09 Noncommercial Broadcasting 207

§4.10 Production Music for Film and Television 208

§4.11 Commissioned Music 208

§4.12 Recording Agreements 209

[1]-Recording Agreement Overview 210
[a]-Exclusive Services 210
[b]-Copyright 212
[i]-Work Made for Hire Status of Sound Recordings 212
[ii]-New Technologies and Digital Rights 213
[c]-Term 215
[d]-Delivery and Approval 216
[e]-Option Periods 216
[fJ-Recording Fund and Recoupable Advances 216
[g]-Release Commitment 217
[h]-Name and Likeness, Coupling, Trademarks, and Merchandise 217
[i]-Royalties 217
[j]-Deductions, "Cross Collateralization," and Other Expenses 218
[k]-Producer Royalties 219
[!]-Sampling 220
[m]-Mechanical Royalties: Controlled Compositions 221
[n]-Videos and Touring 222
[o]-Licensing Approvals 222
[p]-Audit Rights 222
[q]-Termination, Suspension, Reversion of Rights 224
[r]-Recording Agreement Negotiation 224
[s]-Other Models for Recording Agreements 225
[t]-A Note on Recording Studios 226

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[u]-Quality Control 226

[v]-Reserve Accounts 226
[2] Distinctions Between Featured and Nonfeatured Artists 227
[3] Production Agreements 227
[4] ''Brick and Mortar'' Retailing 227
[5] Digital Distribution and Security Measures 228

§4.13 Music Publishing Agreements 229

[1] Categories of Music Publishing Income 230
[a]-Performing Rights 230
[b]-Mechanicals, Including Ring Tones 230
[c]-Synchronization 230
[d]-Grand Rights 231
[e]-Printed Music 231
[fJ-Digital «catchall" 232
[g]-Permissions, Including Uses of Lyrics 232
[h]-Rental of Orchestral Materials 232
[i]-Agent and Sub-Publisher Fees, Deductions and «At Source" Accounting 232
[2] Co-Publishing Agreements 233
[3] Music Publishing Administration Agreements 234
§4.14 Personal Managers and Talent Agents 235
[1] Personal Management Agreements 237
[a]-Term and Territory 237
[b]-Services 238
[c]-Authority of Manager 238
[d]-Artist's Undertakings and Warranties 238
[e]-Manager's Commission 238
[fJ-Expenses 240
[g]-Accounting 240
[h]-«Not an Agent" Notice 240
[2] Talent Agency Agreements 240
[3] Career Management Strategies 242
§4.15 Concert Performance and Touring 244
[1] Concert Performance Agreements 248
[a]-Engagement and Compensation 248
[b]-Merchandising 248
[c]-Sponsorships 248
[d]-Artist Responsibilities 248
[e]-Promoter's Responsibilities 248
[fJ-Cancellation 249
[g]-Audiovisual or Other Recording 249
[h]-Box Office and Ticket Audits 249
[i]-Complimentary Tickets 249
[j]-Promoter's Representative 249
[k]-Schedules, Transportation, and Accommodation 249

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[l]- Dressing Rooms and Catering 250

[m]-Ticket Surcharges 250
[2]-Merchandise 250

§4.16 Unions and Guilds 250

[1]-The American Federation of Musicians (AFM) 250
[2]-SAG-AFTRA 251
[3]-The American Guild of Musical Artists (AG MA) 252

§4.17 Considerations for Musicians: Co-Ownership and Band Agreements 252

[1]-Copyright Co-Ownership of Musical Works 252
[2]-Business Considerations for Groups 253
[a]-Division of Income 254
[b]-Group Name and Trademark Rights 254
[c]-Decision Making 255

§4.18 YouTube 255

§4.19 Independent Distribution on Streaming Services 257

CHAPTER 5
LIVE THEATER

§5.01 Live Theater 259

[1]-Unions and Collective Bargaining 259
[2]-Broadw ay Theatre Guild Agreements 260
[a]-The Dramatists Guild Approved Production Contract 261
[b]-The Society of Stage Directors and Choreographers Broadway Agreeme11t 263
[c]-The Royalty Pool 264
[i]-Net Profits After Recoupment 265
[ii]-Motion Picture Adaptations of Stage Works and Musicals 265
[d]-Side Letters 266
[3]-Ticket Service Fees 267

CHAPTER 6
RADIO

§6.01 Introduction 269

§6.02 Radio Formats 269

§6.03 Considerations Regarding ''Live'' Radio

and On-Air Personalities 271

§6.04 On-Air Talent Agreements 273

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§6.05 Music Licensing in the Terrestrial

and Digital Radio Industries 274
[1]-Governmental and Court Regulation of Mass Media 274
[2]-Two Separate Copyrights in Every Song 275
[3]-Terrestrial Radio: Industry-Wide Negotiation of License Fee Rates 276
[4]-The Digital Performance Right for Sound Recordings 276
[SJ-Types of DR Services: Non-Interactive or Interactive 277
[6]-The ''Pureplay Settlement'' 278
[7]-DR Services and Songwriters 278
[8]-The Fee Rate Status Quo 278
[9]-Legislative Initiatives Regarding Radio and Music Licensing 279
[10]-Digital Licensing Maneuvers by the Music and Radio Industries 279
[11]-Artist Response 280
[12]-0ther Royalty Consequences for Songwriters and Artists 280
[13]-Pre-1972 Sound Recordings 281

CHAPTER 7
CELEBRITY RIGHTS OF PUBLICITY AND PRIVACY

§7 .01 Introduction 283

§7 .02 Right of Publicity and Related Rights 284
[1]-0rigins of the Right of Publicity 284
[a]-"The Right To Privacy" 285
[b]-New York Civil Rights Law Right of Privacy Statute 286
[i]-Liability Under New York's "Right of Privacy" Provis ion 286
[ii]-Damages and Injunctive Relief for Privacy Violations 286
[iii]-Exceptio11s 286
[cl-Judicial Recognition of the Right of Publicity 287
[d]-Zacchini v. Scripps-Howard Broadcasting Co. 287
[e]-Right of Publicity as a Distinct Property Right 288
[fJ-California Right Of Publicity Statute 289
[i]-Infringing Use 289
[ii]-Damages 289
[iii]-Identification 290
[iv]-Exceptions for News 290
[g]-California Post-Mortem Right of Publicity Statute 290
[i]-Applies to Deceased Personality 290
[ii]-Damages 291
[iii]-Exceptions 291
[iv]-Testamentary Disposition and Transferability of the Right; Intestate Succession 292
[v]-Registration of Claims; Searching for Claims 292
[vi]-Seventy Years Post-Mortem 292
[vii]-Deceased Personality Defined 293
[viii]-Identification 293
[ix]-Secondary Liability for Media 293
[x]-Remedies Cumulative; Jurisdiction 293

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[2]-Jurisdiction, Venue, and Choice of Law 293

§7 .03 Related State and Federal Causes Of Action 294

[1]-Lanham Act Claims 294
[a]-False Endorsement and False Advertising 294
[b]-Trademark Infringement 296
[2]-First Amendment Defenses 298
[a]-Commercial Speech 298
[b]-Noncommercial Speech 299
[3]-Fair Use in Creative and Artistic Works 300
[4]-Fair Use Under the Lanham Act 301
[a]-Classic Fair Use 301
[b]-Nominative Fair Use 301
[SJ-Copyright Preemption 302
[6]-Common-Law Causes of Action Under Restatement (Second) of Torts
and Restatement (Third) of Unfair Competition 303
[7]- Liability for Deceptive Advertising
Under the Federal Trade Commission Act ''Infomercials'' 304
[8]-Food and Drug Administration (FDA) Regulation of Celebrity Drug Advertising 305

§7 .04 Leading Right of Publicity Cases 306

[1]-Contours and Expansion of the Right of Publicity 306
[a]-Evocation of Personas or Nicknames 306
[b]-Look-Alikes 307
[c]-Sound-Alikes and Sound Recordings 307
[d]-The Expansion Of "Identity" 308
[e]-Imitations of Celebrity Performances 308
[fJ-Titles of Movies and Songs 309
[g]-Motion Picture Advertising 309
[h]-Parody Comic Books, Caricatures, and Baseball Cards 310
[i]-Sports 310
[j]-Merchandise Catalogs 311
[k]-Statements and Photos on Magazine Covers 311
[l]-Tabloid Newspapers 312
[m]-Editorial Content and Advertising of Editorial Content 312
[n]-Computer Games 313

§7 .05 Celebrity Privacy 315

[1]-Tort Actions for Intrusion into Private Matters 316
[2]-California's ''Anti-Paparazzi Statute'' 316
[a]-Physical Invasion of Privacy 316
[b]-Constructive Invasion of Privacy 317
[c]-Assault 317
[d]-Damages and Disgorgement 317
[e]-Furtl1er Provisions 317
[3]-Celebrity Stalkers 317

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[a]-New York's Anti-Stalker Statute 318

[b]-California's Anti-Stalker Statute 319
[i]-A Pattern of Conduct to Follow, Alarm, or Harass 319
[ii]-Plaintiff s Reasonable Fear for Their Safety 319
[iii]-C redible Threats made After a Cease Demand;
or Violation of Restraining Order 319
[iv]-Damages 319
[v]-Rights Cumulative 320
[vi]-Exceptions for Constitutionally Protected Activity 320
[c]-Use of Copyright and Contract Law to Control Adverse Publicity 320
[d]-Statutes Forbidding Posting of Private Photos Online 321

§7 .06 Celebrity Endorsement Agreements 321

[1]-Grant of Right of Publicity 322
[2]-Term 322
[3]-Territory 322
[4]-Exclusivity: Products and Media 323
[5]-Personal Services 323
[6]-Right of Approval 323
[7]-Intellectual Property and Copyright 323
[8]-Failure to Perform; Morals Clause 323
[9]-Trademarks 324
[10]-Product Development and Manufacturing 324
[11]-Consideration 324
[12]-Signing Bonus 324
[13]-Advances and Guarantees 324
[14]-Fixed or Set Fees 325
[15]-Royalty 325
[16]-Royalty Scope 325
[17]-Commissions; Payments to Agents or Managers 325
[18]-Ancillary Sales and Reorders 326
[19]-Deceptive Advertising Liability
Under the Federal Trade Commission Act 326
[20]-Compliance with Union Rules
and Collective Bargaining Agreements 326
[21]-Non-Compete Clause 326
[22]-Warranties and Representations: Product Manufacture, Safety,
Intellectual Property, and Ethical Considerations 326

§7 .07 Social Media Influencer Agreements 327

XXII I ENTERTAINMENT LAW

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CHAPTER 8
CYBERLAW

§8.01 Introduction 331

§8.02 The Digital Millennium Copyright Act 331

[1]-The Safe Harbor 332
[2]-Eligibility for the Safe Harbor 333
[a]-Reasonably Implemented Policy to Terminate Repeat Offenders 333
[b]-ISP Must Not Have Actual or "Red Flag" Know ledge or Control of,
or Financial Benefit from Infringement 334
[3]-Take Down Notice 337
[4]-Designated Agent 338
[SJ-Cases Where the DMCA Safe Harbor Held Not Applicable 339
[a]-Websites T hat Fail to Meet the Requirements of the DMCA Safe Harbor 339
[b]-Websites That Do Not Qualify as Internet Service Providers 341
[6]-Voluntary Cooperation and New Technological Measures
in Addition to the DMCA 341
[?]-Secondary Liability for Online Trademark Infringement 342

§8.03 Anti-Cybersquatting Consumer Protection Act 343

§8.04 Domain Names 344

[1]-Domain Name Registration 344
[a]-ICANN 344
[b]-Domain Registries 345
[c]-Registrars 345
[d]-The Registrant 345
[e]-The Host Server 345
[fJ-Whois 345
[2]-The Uniform Domain Name Dispute Resolution Policy (UDRP) 345

§8.05 Public Licenses: Open Source Software 346

Index of Cases 349

TABLE OF CONTENTS I XXIII

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CHAPTER 1

FIL

§1.01 Introduction
As the Second Circuit has observed, "Filmmaking is a collaborative process typically involving
artistic contributions from large numbers of people, including-in addition to producers, directors,
and screen-writers-actors, designers, cinematographers, camera operators, and a host of skilled
technical contributors." 1 Film is an enormously collaborative medium, more akin to a military
general assembling and commanding an army than any other art form. Because filmmaking is a
quasi-industrial endeavor, the creative vision of a few key people must be supported by a virtual
army of technicians, craftspeople, marketers, financiers, and bookkeepers. An entertainment lawyer
whose practice includes film may find a need to be conversant in several areas of the law, including:

• Intellectual Property Law: for the acquisition of underlying rights, and the protection of the IP
embodied in the film, including copyright and trademarks;

• Business and Finance/Securities: for t he successful acquisition of funding and investment for
the project and the required accountings;

• Labor and Employment: for the personal services agreements for cast and crew, and for working
with trade unions, guilds, and collective bargaining entities in the film industry;

• Agency: for dealing with the roles of agents and managers who represent actors, directors, and
•
writers;

• Insurance: for advising on insurance coverage requirements in the film industry;

• Advertising: for advising on marketing and promotion, including celebrity rights of publicity,
and product placement, tie-ins consisting of advertising the film in conjunction with other
companies, and related advertising issues;

• Corporate Law: for dealing with formation of business entities;

• Contract Law: for reducing all of the above to operative agreements.

1 See 16 Casa Duse, LLC v. Merkin, 791 F.3d 247, 258 (2d Cir. 2015).

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This chapter will present a practical, chronological approach to the various tasks that an entertainment lawyer
will likely encounter, from initial conception of a project to its completion, distribution, marketing, and
financial accounting, both for motion pictures, and for television projects.

§1.02 The Life Cycle of a Film

[1]-Production
The life cycle of a film, from initial concept to completion and distribution, can span many years during
which the producer will have many creative and business tasks to accomplish to complete a motion picture
and achieve distribution to the public. A helpful visual aid describing the creative and business steps that
must be climbed will be found as an Appendix to this Chapter (§1:15[1], "The Film Production Pyramid".

[a]-Development
The initial creative stages usually occur prior to obtaining a firm commitment for financing or
production. During development, a writer will be commissioned to create the first draft of the
screenplay. The project's producer will attempt to interest a lead actor and a director to "attach"
themselves to the project. During this phase, the producer may obtain option rights on a preexist-
ing story, and depending on how long development takes, may need to exercise those options in
order to extend the period available to obtain either independent or studio financial backing. This
phase will also include a draft budget for the project's finances, with a total amount represented
by the "negative cost " 2 of the project.

Development may be underwritten by the studio that makes preliminary investments in the pro-
ducer and the screenwriter. If the studio loses interest in the project, the project may go into "turn-
around," whereby the studio allows the producer to shop the project to other studios. The original
studio may retain certain rights in such turnaround scenarios, such as the right to be reimbursed
for its prior development costs.
For a detailed insider's view of the development process, Buchwald v. Paramount Pictures Corp. re-
counts how an eight-page screen treatment took six years to be fully realized, in circumstances
that ultimately led to a successful breach of contract lawsuit.3 The case describes in detail the long
process of development of the film "C oming to America" and merits examination.

In Buchwald, Art Buchwald, a successful political satirist, used the real-life occasion of a visit by
the Shah of Iran to the United States as the basis for a comedy in which an African leader travels to
America where he becomes stranded by a coup back home, and ultimately finds happiness living
in a Washington D.C. ghetto. Buchwald had submitted an eight-page "treatment" 4 to Paramount
Pictures. At the time, Paramount was looking for a movie for comedy star Eddie Murphy.
Buchwald's treatment was one of many potential projects considered by Murphy and by Para-
mount. As part of the development process that took several years, Paramount engaged a producer,
Bernheim, and engaged a director, and assigned a writer the task of creating a screenplay from the

2 The "negative cost," or the cost of production, culminates in the fully completed film's photographic negative from which positive prints
can be made and shipped to theaters.
3 See Buchwald v. Para,nount Pictures Corp., 1990 WL 357611 (Cal. Super. Jan. 31, 1990) ("Buchwald I") (Phase one of the proceedings found that
Paramount breached its agreement with Buchwald. The court's finding on the unconscionability of the studio's net profit accountings was in
the unpublished Phase Two opinion).
4 A treatment is a brief outline of the screenplay.

2 I ENTERTAINMENT LAW

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treatment. Paramount spent over $418,000 on screenwriting, option fees , and advances to the
potential producer, director, and screenwriter.

Over the next three years, the studio extended its option to use the Buchwald treatment several
times. By 1985, it appeared that the project would not happen. Paramount abandoned the treat-
ment, and put it in "turnaround." Buchwald and Bernheim restarted the process at Warner Bros.
Studios. In late 1987, Warner cancelled the project because it learned that Paramount was about
to produce a film starring Eddie Murphy with a similar story line, titled "C oming to America."
For Buchwald, six years had passed during which he received modest option extension fees from
both Paramount and Warner, but to no avail.
When Paramount released "Coming to America" in 1988, Buchwald realized Paramount had, in
essence, produced a film based on his original treatment. He and Bernheim successfully sued
Paramount for Paramount's breach of its original agreement with Buchwald for a share of the
film's net profits. 5

[b] Pre-Production
Once financing has been obtained and production is guaranteed, the project moves into the
pre-production phase. During pre-production, the producers hire cast and crew and plan for
production, which includes, for example, making arrangements for locations, soundstages, rent-
ing equipment, costumes, and music.

[c]-Principal Photography
Principal photography is the period during which the motion picture is shot, both on location
and in the studio. Many last minute changes to the project can be made during the shoot, includ-
ing changes to the script and even some of the cast members.

[d] Post-Production
During post-production, the film's raw footage is edited, adding sound effects, special effects,
and other technical matters, culminating with the completed final cut "negative." The film is
now ready for the creation of prints for distribution to theaters for exhibition.

[e]-''Final Cut''
A studio-produced film will have a planned release date, which serves as incentive for the pro-
ducer to deliver the final cut to the studio so preparations can be made for distribution and
marketing. Given that studio films aim to create audience demand through widespread mar-
keting campaigns, this ''prints and advertising" expenditure 6 is typically enormous, sometimes
approaching the entire cost of producing the film itself.

The project's financer, often the studio, reserves all rights to the finished and fully edited film, or
"final cut" and can override the film's director with respect to editing, changes to the script, and

5 Buchwald v. Paramount Pictures Corp., 13 U.S.P.Q.2d 1497 (Cal. Super. 1990) ("Buchwald II") (Phase two of the proceedings, unpublished).
The Buchwald case also presents an accurate portrayal of the slow and uncertain path to production for many films, sometimes taking far more
than the six years in the Buchwald case. It is also a good illustration of the "option", an important contractual mechanism. An option secures
rights on a contingency basis, with the actual purchase of those rights postponed to a later time, triggered by events such as obtaining the
financing to proceed with production. During the entire six-year saga of the Buchwald case, his only operative contract with the studio was an
option agreement that netted Buchwald a few thousand dollars. Ultimately, Buchwald was awarded $150,000, and Bernheim received $750,000.
6 The campaigns often consist of shipments of multiple prints of the film to theaters nationwide, along with the advertising campaigns.

FILM I 3

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