CONTRACTS AND COPYRIGHT IN ENTERTAINMENT LAW

 CONTRACTS AND COPYRIGHT IN ENTERTAINMENT LAW

Obi Lilian Chinenyenwa

University of Port Harcourt

1.0 INTRODUCTION 

Behind every successful and influential entertainer or artist is a great legal team equipped with the body of laws that govern the entertainment industry. Due to the upsurge in the use of social media and Internet, the world has witnessed a spike in music, online business, creative contents and video contents, including movies. These categories fall under the entertainment industry, and they are governed by entertainment laws.

Entertainment laws refer to the legal regulations and guidelines that govern the creation, distribution and consumption of various forms of media, including film, television, music theatre, and other forms of entertainment. The field of entertainment law is a complex one that spans the subjects of contract, company law, including accompanying contracts, copyright, litigation and licensing issues, and sometimes other concerns that pertain to employment and taxation law.

You might be asking, of what use is contract in entertainment law? This blog post provides a detailed understanding of contracts and copyright in entertainment law.

Let’s delve in.

UNDERSTANDING CONTRACTS IN ENTERTAINMENT LAW

Legal issues arise at all stages of the creation of original works of entertainment. This spans from the production stage where formal contracts are drawn to set forth the right the parties involved in an entertainment work, to the licensing and distribution stage. In the dynamic and fast-paced world of the entertainment industry, understanding the intricacies of contracts is paramount for success.

An entertainment contract is a legally binding agreement, governing the relationships between the various parties involved in the production, distribution and exploitation of entertainment content. These parties could include artists, producers, talent managers and many others. A well-drafted contract serves to protect the interests of all parties involved.

TYPES OF ENTERTAINMENT CONTRACTS

Recording contract: This contract typically outlines the terms of an artist's relationship with a record label, and covers issues such as royalties, album releases and promotional activities. 

Performance contracts: These contracts are used for live events such as concerts or tours. They establish how much an artist will be paid, what expenses will be covered, and other logistical details related to the performance.

Licensing contracts: Licensing contracts allow artists to grant others permission to use their work in exchange for compensation. This could involve licensing music for use in films or television shows or granting permission to reproduce artwork on merchandise.

Management contracts: Management contracts outline the relationship between an artist and their manager/management company. These agreements may include provisions regarding commissions, responsibilities, termination clauses and more.

Distribution contracts govern how recorded music is distributed through various channels like streaming services or physical media.

These contracts are essential for defining explicit conditions, safeguarding intellectual property rights, assuring equitable pay, and controlling risks and liabilities. They serve as the foundation for collaboration, and aid in the prevention of disagreements and misunderstandings among the parties concerned.

KEY CLAUSES IN ENTERTAINMENT CONTRACTS

Entertainment contracts contain several vital clauses that address specific aspects and protects the parties involved. They include:

Payment terms and compensation structures: payment terms and compensation structures are crucial aspects of entertainment contracts. These clauses outline how and when payment will be made to the talent or service provider . It specifies the compensation amount, payment schedule (e.g lump sum, instalments or mile-store based payments), additional financial considerations such as bonuses, royalties, or profit-sharing arrangements. Clear payment terms ensure that both parties have a mutual understanding of the financial arrangements and prevent any disputes or misunderstanding.

Intellectual property rights and ownership: Intellectual property clauses are vital in entertainment contracts to address the ownership, licensing and use of creative works and intellectual property. These clauses define who owns the intellectual property rights to the content created during the engagement. It specifies whether the rights are transferred to the hiring party, shared between the parties or retained by the creator.

Exclusivity and Non-compete clauses: Exclusivity and Non-compete clauses are frequently included in entertainment contracts to protect the hiring party’s interests and ensure talents’ dedication to a specific project or employer. Exclusivity clauses prevents the talent from engaging in similar collaborations with competitors during the contract term.

Termination and cancellation clauses: Termination and cancellation provisions outline the conditions and procedures under which either party can bring the contract to a premature end. These clauses may cover breach of contract, failure to meet performance obligations, force majeure events, or other circumstances agreed upon.

2.0 THE ROLE OF COPYRIGHT LAW IN THE ENTERTAINMENT INDUSTRY 

The term “copyright” refers to the legal rights that authors hold over their literary and artistic works. Books, music, art, sculpture and films are among the works covered by copyright. 

“......the right of a man to that which he had originally made...must be protected” observed Belgore J in the case of Oladipo Yemitan V. Daily Times Nigeria Ltd. 

The copyright Act is the legal cloak protecting the originality of the creative works of authors, songwriters, music publishers, photographers, and all round creatives in the media and entertainment industry. This Act grants the creator the exclusive rights to control the use of his creative work and prevents unauthorised persons from copying, adapting or passing off a creative work as theirs. 

Section 2 of the Copyright Act 2023, provides for the works eligible for copyright and they include literary, artistic works, sound recordings, broadcasts and audio-visual (formerly itemised as cinematographic work). Section 2(2) further provides that efforts must have been expended in the creation of the work; the work must enjoy an “original character” by reason of these efforts, and the work must have been produced in tangible form.

Without outright application and registration, by virtue of existence, works eligible for copyright are protected in Nigeria. However, owners can still register their works if they opt to, in order to lay to rest doubts that may arise as to the time of creation of the work in the events of a dispute. The body responsible for such registration is The Nigerian Copyright Commission. 

3.0 CONCLUSION 

Entertainment law plays a pivotal role in the entertainment industry, as it safeguards the privileges of producers, artists, and other industry experts. By navigating the complexities of contractual agreements and copyright protection, authors in the entertainment industry can safeguard their interests, foster innovation and ensure the continuous growth of the entertainment industry. The synergy between contracts and copyright law remains essential in balancing the interests of creators, protecting their ingenuity and ensuring that creators obtain fair compensation for their work.

REFERENCES 

The Importance of Contracts in the Entertainment Industry < https://entertainmentlawyermiami.com/the-importance-of-contracts-in-the-entertainment-industry/> accessed 16th March 2023.

Contractual Agreements in the Entertainment Industry. < https://corpbiz.io/learning/contractual-agreements-in-the-entertainment-industry/> accessed 16th March 2023.

The Copyright Act 2023.

Fair Use And Fair Dealing: An Analysis of Copyright Law in Nigeria. < https://lawpavilion.com/blog/fair-use-and-fair-dealing-an-analysis-of-copyright-law-in-nigeria/> accessed 17th March 2023.