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.
What’s the Difference between a Copyright & a Trademark?
Photo by Markus Winkler. https://unsplash.com/@markuswinkler
Photo by Sam Moghadam Khamseh. https://unsplash.com@sammoghadamkhamseh
Photo by Alexander Grey.
Photo by Kenny Eliason.
I’m often asked what the difference is between a copyright and a trademark. It’s easy to confuse the two because there can be an overlap between the two. Below is a general description of the differences.
Think of a copyright as the “thing” you make. As the creator of this “thing,” you can do whatever you want with it. You can make changes to it, duplicate it, create different versions of it, sell it, license it’s use in specific ways, or do nothing at all with it. A common law copyright is created once your “thing” is in a fixed and tangible form, like sheet music, a photograph, a manuscript, etc. For better protection of the “thing,” it’s highly recommended that you register it with the U.S. Copyright Office. The filing fees for applying for copyright registration range depending on if you are filing electronically or with a hardcopy, and the category. Most electronic filings are less than $100, and the process from filing to final registration typically takes 2-3 months, assuming no issues and no backlogs. Here is the link for more information on federal copyright registration: https://www.copyright.gov/registration/.
A trademark, on the other hand, is your brand. It’s something that the general public associates with you or your business. It can be a logo, a phrase, a sound, etc. Like with a copyright, you have a common law trademark when you use the brand in association with your goods and/or services. You can register your trademark in most states, however it only protects your brand from infringement within the state. For protection throughout the U.S. you have to apply for a federal trademark registration through the U.S. Patent and Trademark Office. Filing fees for initial electronic applications start at $250 per class, and based on the type of form you use, but fees are currently under review for possible increases in November 2024. The process from filing the application to the final registration can range from 12-18 months or longer based on any issues that arise from the application information and backlogs. This is the link for more information on trademarks: https://www.uspto.gov/trademarks.
Finally, federal registrations allow the owners of copyrights and trademarks to seek harsher penalties against those who infringe upon their work or their brand, than they could obtain suing infringers in state courts. These penalties can be civil and/or criminal, and can include an assessment of costs and attorney’s fees.
As with any legal questions, seek the advice of legal counsel to assess the facts of your circumstances.