Signing Away Your Rights in Sports & Entertainment Contracts

Photo by Kelly Sikkema from Unsplash.

If you’ve ever wondered how important owning the trademark to your own name is, ask why some record label contracts, some sports contracts, etc., require that the performer give up their name as part of the deal. A trademark has value, and has the ability to make money for its owner in variety of ways beyond the immediate purpose of the contract. There are a variety of rights that an entertainment contract can demand that you sign away ownership to as a term of the contract.

I read a really well-written article today on Inc.com by contributing editor Jeff Haden, titled, “Why Did Dwayne Johnson Just Receive Full Ownership of ‘The Rock’? The Value of Trademarking and Controlling Your Own Intellectual Property.” Here is the link: https://www.inc.com/jeff-haden/dwayne-johnson-just-received-full-ownership-of-the-rock-it-shows-value-of-trademarking-controlling-your-own-intellectual-property.html. I strongly encourage anyone getting ready to sign a new entertainment contract for their performance to read this article first, and then read every word in the contract before signing.

The article discusses how actor and former wrestler, Dwayne Johnson, never owned the trademark to his wrestling name “The Rock,” even though that’s how he’s usually referred to as an actor outside of wrestling. The article says it wasn’t until now that Johnson has just acquired full ownership of “The Rock” trademark as a term of a new deal he entered into with TKO Group Holdings, Inc.,  which owns WWE (the now former owner of “The Rock” trademark).

Many now famous entertainers talk about how they didn’t realize what they were signing away when they signed their first entertainment contracts, and as a result they barely made any money, if any, when they became famous.   It comes down to asking yourself if the promise of what you could have, is worth giving up a right you currently own, if you become famous. The article talks about this. In some situations it worked out for the performer that took the risk despite losing whatever right they signed away.  In many cases, it may not even be an issue because the performer is signing a very limited contract with a small company or independent that is not well-established.   It all comes down to reading the fine print (every word), seeing of there’s room for negotiation, and if so, limiting the transfer of ownership of whatever right as much as possible, and then making the decision to sign or not.