Boilerplate Blurb and Draw the Law: Tying it Together, Using a Memorandum of Understanding

Remember my post on Memorandums of Understanding? Well, yesterday I discussed Acceptance. Now, let’s bring the two concepts together to help you understand how a memorandum of understanding fits in contract law.

An Agreement to Agree

Letters of Intent (LOI) and Memorandums of Understanding (MOU) are usually not contracts (remember contracts are defined by words or actions, so these two types of documents can be a contract depending on the language).

Why are they not contracts?  Well, generally the language in them is broad and there is only an indication of what the terms might be, as they are still being negotiated.  Therefore, there is only an understanding between the two parties that they would like to agree.  Remember without assent, there is no acceptance, and without acceptance there is no contract.  With LOIs and MOUs there is even a question of what is the offer?

So Why Use Them?

What they are great for is being used as a starting point for a formal contract to be drawn up at a latter date.  In particular, still evolving relationships and situations are good for LOIs and MOUs because both sides recognize the need to be flexible to figure out what they want in a formal agreement.  Furthermore, they know if the business deal does not come through there was no contract to sue each other over. Basically, it was an experiment.

Bottom line: Using LOIs/MOUs as the Basis for Future Agreement

Consider using a LOI or MOU in a situation where you and the other side do not know how the relationship will work.  You can experiment for a while and determine what the important terms will be.  From there you both can negotiate and settle upon a more formal agreement at a latter date.

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*Disclaimer:  This post discusses general legal issues, but does not constitute legal advice in any respect.  No reader should act or refrain from acting based on information contained herein without seeking the advice of counsel in the relevant jurisdiction.  Ryan K. Hew, Attorney At Law, LLLC expressly disclaims all liability in respect to any actions taken or not taken based on the contents of this post.

Draw the Law Special: Copyright and Rights of Publicity for Photographers and Models

Today’s Draw the Law is a special one, done as a shout-out to all my photographer friends. In particular, this post is for Dallas Nagata White and her great assistant/husband Ed White and their support from the local photographer community. Thus, I will be delving into a narrow subset of contract law with IP tossed in for good measure to create a montage post of rights of publicity, copyright, model releases, and licensing agreements to help out photographers and models sort through the law so they can go back to doing their art and furthering their careers.

The Context

Who owns what in a photograph? Today's Draw the Law sorting through copyright and rights of publicity for photographers and models.

Before getting to the law, let’s set-up the context for all these concepts. It is a typical scenario: photographer is hired to do a shoot, selects a model, takes pictures, then posts or publishes those pictures. In those simple steps, without written documentation, there can arise a lot of problems. Then we get into the fight between photographer, model, and possibly third parties that use those pictures.

Copyright: The Photographer is the Author

Copyright gives the author the right to control copies. The right is immediately given when the original expression is fixed into a tangible medium, such as capturing a scene with a photograph.

Without delving too deeply into copyright law (because a) it is apart of my talks and b) I will be returning to it at a later date) understand that the photographer is the copyright holder because they authored the picture. Specifically, a copyright is given to anyone who creates “original works of authorship.” Therefore, as soon the photographer takes pictures of guys in cartoonish outfits the photographer is the copyright holder of the photographs. Copyright, is as it sounds, the right to copy. Therefore, a photographer usually assigns or licenses that right to make copies to companies who then use those images for marketing campaigns and the like.

Rights of Publicity: What about the Models?

The rights of publicity gives a person the right to control their image, especially in the context of commercial use. Thus a model can say no to using her face promoting drinking

Here comes the fun part of the situation, while the photographer is the copyright holder of the photograph the model has right to their face, likeness, even images of their body and the sound of their voice. This is known as rights of publicity; Hawaii law states that, “every individual or personality has a property right in the use of the individual’s or personality’s name, voice, signature, and likeness.” (HRS 482P) Therefore, it is typical for models to sign a model release to allow their image to be used in a manner the photographer sees fit.

Model Release vs. Licensing Agreement: Power Struggle

While both rights of publicity and copyright can be licensed, assigned, etc . . . for simplicity sake for this post I am going to separate them into model release and licensing agreement. Typically, a photographer will want to get a model to sign off on as many things as they can in a model release. The model release works by releasing the models claims to the ability to enforce their rights of publicity claim as to their image. In the case of a famous model and/or photographer, their goal is to try to limit the use of their likeness/image and/or photos by others because they can get more money. A famous actor/model will read through a model release or may even have their own agreement to force a photographer to either pay a lot for a lot of usage out of their likeness or pay minimal for say a one-time use whereas an upcoming model will probably sign away a lot of rights to a famous photographer due to the chance of becoming noticed. At the end of the day it all boils down to negotiation or sometimes going with what is the standard practice of the industry.

Third-Parties and Our Digital World: Letting the Images Out into Cyberspace

For 3rd parties that download images of people that you wish to use with marketing you want to make sure that a) you are licensed to do so by the copyright holder and b) that the person has released their image to be used in a fashion.

This last part is what we see on a daily basis on the web, but typically it is where people also get confused. So what happens now that we have the Internet, social media, and smartphones? We share images, we edit them, change them, see something we like and snap a shot of them, then share them. So let’s say that photographer takes a picture of model, and then posts the image to a sharing site. A company sees the picture and likes it, takes it, then slaps it on its merchandise to sell them. Let’s say the sharing site has a Creative Commons licensing agreement. Therefore, photographer actually licenses the right to copy to the site, which in turn gives that right to other users. Thus the copyright holder (photographer) has licensed the right (to use the photo) to third parties (the company) through the sharing site (due to Creative Commons licensing agreement). However, do you see the hang up? The model has NOT given up their rights of publicity to the company. They have every right to control their image, especially in terms of commercial use. Thus, while the company may have licensed the copyright for the photograph it has not gotten the right to use the model’s image/likeness in conjunction with its goods.

Last Words

Copyright law is federal, whereas Rights of Publicity is a state law, and not all states have Rights of Publicity on the books. Finally, you may wish to consider giving public notice of ownership of publicity rights, which you can file with the state of Hawaii’s Department of Commerce and Consumer Affairs. Chapter 482P permits an assignee or transferee of publicity rights to make a publicity rights trade name registration. For all the foregoing reasons that is why my photography and model friends you should consider documenting your agreement regarding photos.

If you enjoyed this post be sure to “Subscribe” today!

*Disclaimer:  This post discusses general legal issues, but does not constitute legal advice in any respect.  No reader should act or refrain from acting based on information contained herein without seeking the advice of counsel in the relevant jurisdiction.  Ryan K. Hew, Attorney At Law, LLLC expressly disclaims all liability in respect to any actions taken or not taken based on the contents of this post.

Return of Draw the Law: Contracts Part I

It’s a New Year, but it’s time to return to an old favorite. DRAW THE LAW! Seeing, as it is so popular with business people, entrepreneurs, social media mavens, DJs, other lawyers, and corgis (ok, I made the last one up). I am moving the postings for Draw the Law up to either Tuesdays or Wednesdays (given my schedule) so you can enjoy it for more of the week! I will always being going back to basics of law and legal issues for entrepreneurs and small business owners. They will also be more bite-sized (or is that byte-sized for a blog?).

Starting Out With Contracts

So it’s a New Year, and it is the Year of the Water Dragon in the Chinese zodiac, which means for most signs prosperous. Let’s forget the debt collecting from last post and the woes of last year, let’s make some deals!

Today, I am kicking off with contract law, which I hope to culminate in a month or two into a live contract workshop for businesspeople to understand what the word “contract” means for attorneys. Why? I believe the more you know, the more it helps lessen your legal costs and doesn’t waste your attorney’s time of re-explaining the wheel to you. (*In addition, for the time we are on contracts, Boilerplate Blurb will be fused with Draw the Law).

What is a Contract?

A "contract" is not a set of papers. It is a promise or a set of promises that are enforceable, and can be oral or written.

IT IS NOT THAT PIECE OF PAPER YOU SIGNED! Let me repeat that a “contract” is NOT a set of papers with words on it that you signed. The papers with words on them are merely an embodiment of the agreement.

A contract IS a voluntary promise or a set of promises that a court will enforce.  A contract can be oral or written. The details of the contract are the provisions or terms.

Do I Need a Lawyer to draft my Contract?

No, not at all. We make contracts all the time. Have you every told a friend you would sell them an old textbook or computer for X dollars? Notice what you are doing. Your promise is that you will exchange your property for the promise of them giving you the proper amount of money? Did you need an attorney for that?

What you did need for this to be a contract is the promises, but the support of an exchange of something valuable between the parties (you and your friend).  This is called consideration. Typically, in our modern capitalistic society, consideration is money in exchange for goods or services.

Consideration is the exchange of something of value between parties or a bargained-for benefit/detriment exchange. Notice here the person selling the watch for cash loses the watch (detriment) and gets cash (benefit), and vice versa for the other person.

Do I Always Need Consideration?

Yes.  There is no contract without consideration. To tell if something is good consideration we look for a bargained-for benefit or detriment. However, the benefit or detriment MUST be legal. Remember that a contract needs to be enforceable by a court. Thus if you wanted to trade your gold watch for meth, and the drug dealer stole your watch, you could not go to a court to enforce the agreement to get the meth. Why? Meth is an illegal substance, therefore not good consideration. While you always need consideration the subject of the promise(s) can never be something illegal.

A court of law will never enforce an illegal agreement; it is against public policy. Thus, a person who wants the drugs when the dealer ran off with his money will never get it.

A Word on Complex Contracts and Attorneys

While, I did say you did not need a lawyer to draft your contracts first consider the complexity of the transaction you are doing. Consider what you want spelled out, what you are bargaining for, and what does it mean for your company? Finally, realize that many transactions are regulated or have a certain applicable commercial laws, thus legal review can be crucial.

If you enjoyed this post be sure to “Subscribe” today (I’m sure it was a New Year’s Resolution)!

*Disclaimer:  This post discusses general legal issues, but does not constitute legal advice in any respect.  No reader should act or refrain from acting based on information contained herein without seeking the advice of counsel in the relevant jurisdiction.  Ryan K. Hew, Attorney At Law, LLLC expressly disclaims all liability in respect to any actions taken or not taken based on the contents of this post.