The Independent Film Market

Over the last three years independent filmmakers have been doing well in the box office. Major film studios have long cut funding for the unknown filmmaker. In fact without insider connections new filmmakers cannot pitch their movie scripts to the major studio movie producers. This exclusion has caused independent filmmakers to create creative ways to produce their films. Independent filmmakers have turned to do it yourself low budget movies, DVD only releases, and Video On Demand.

Who remembers the crazy college students from Florida who took a few video cameras into the woods and filmed a story about a witch? Well the Blair Project cost less than $35,000 dollars to make and grossed over $48 million opening week at the box office. The Blair Witch Project continues to be one of the highest grossing horror movies in history making over $500 million dollars to date. The low budget film approach has proven to work in Hollywood. The movie Paranormal Activity cost $15,000 dollars to make and grossed $67 million opening weekend at the box office. I am beginning to see a trend here, aren’t you?

DVD released movies have literally leveled the playing field for independent filmmakers. Major studios own or control film distribution in the US. Simply put without a distribution deal independent filmmakers cannot get their films out to the theaters thus filmmakers cannot make any money. Also there are absorbent costs to market films that can cut into the filmmakers profit. By releasing a film straight to DVD, filmmakers can save millions of dollars in marketing while earning larger gross margins from films. The independent Christian movie “Fireproof” was released straight to DVD in 2008. It became the highest-grossing independent film of 2008 grossing over $33,000,000 million dollars. (www.thenumbers.com)

What’s with the “RED”? I know you are wondering why am I asking this question? The answer is simple, Netflix and Redbox aka the blockbuster killers has redefined the way people few movies at home. Society has shifted from spending the weekend at the movies.  Skyrocketing gas prices, bad economy combined with good old fashion laziness has created a stay at home trend. People are more comfortable lying on the sofa with a can of coke and microwave popcorn to order a movie from the local cable provider. The cost of $3.95 for a video on demand is a lot more economical than a whopping $10.00 ticket at the theaters. The formula is quite simple for independent filmmakers, straight to DVD + V.O.D= double profits. A successful straight to DVD release will certainly do well in V.O.D sales.  According to modelsandmogul.com DVD and VOD sales in 2009 were $683 million dollars. (www.modelsandmoguls.com)

All the elements are available for new filmmakers to go out and make movies. Anyone can buy the same cameras and post production equipment that the major film studios use. As of now these trends are here to stay. If you are serious about making a mark in the film industry the time is now.

Sources

www.thenumbers.com

www.modelsandmoguls.com

Alternative Funding Sources

The number one obstacle for most budding entrepreneurs starting a business is not businesses plan.  Unfortunately is it not having enough capital for start up costs and a years worth of funding for operation.  Far too many entrepreneurs are under the assumption that the current economy has caused funding capital for new businesses to dry up. This is further from the truth venture capitalists and investors have changed their criteria in how and what they invest in.   There are funding sources available if new business owners know where to look.

Depending on the type of business you want to start up, there are hundreds of funding sources for new businesses.  One particular source would be the SJF Ventures invest in business that have $1MM to $20MM in revenue and are poised for rapid growth.  SJF invest in businesses that are seeking $1MM-$2MM initially.SJF has offices in California, New York, and North Carolina.   This type of investor would best suit a business that is already in existence and looking to increase and expand its operation. SFJ Ventures was a funding source found on the Community Development Venture Capital Alliance website (www.cdvca.org).  The CDVCA provides private equity capital to businesses in underinvested markets.  Each member of the community has its own requirements and qualifications for apply to obtain funding.

Another great funding source for new businesses would be through private investors from the Native American community.  Native Americans have quietly accumulated wealth through the ownership of gaming casinos on reservations.  Government grants given to Native American non-profit organizations are another source to find start-up capital.  The First Nations Development Institute is a grant-making program that provides technical and financial resources to tribes and Native nonprofit organizations. Keep in mind that this site is for Native Americans and it’s tribal nations, so any other groups would not qualify for funding.  This is a great place to seek potential investors for your business from Native Americans.

The Opportunity Finance Network is a membership-based network that funds opportunities for members.  The OFN is a community development of financial institutions throughout the United States that provide funding to stabilize communities. These funds are in the form of loans and investments that range from $100,000 to $3 million in terms lasting from 3 to 10 years.  New business owners could benefit from using his network to find start up capital.   

Finding capital to start a new business is not always difficult.  Researching non-traditional funding sources could prove successful for anyone looking to find capital. There maybe advantages and disadvantages to using non-traditional funding sources. Some advantages are that investors who view themselves as non-traditional funding sources are more likely to meet with people looking to start a business.  Investment capital is reserved for individuals who desire to start a business. Qualifications and application process is more lenient than traditional funding sources.  The disadvantages are funding is restricted to certain types of business start-ups.  The amount of start up capital may be available for only certain period of time.  Start-up capital is available on a first come first serve basis.  Despite the advantages and disadvantages non-traditional is an arena that new business owners should not overlook.

Sources

http://www.opportunityfinance.net/

http://www.cdvca.org/

http://www.firstnations.org/default2.asp?id=69

http://www.sjf.com

Expert Business Advice

Starting a business can be a very difficult task.  The most single important thing that anyone starting a business can do is to write a business plan. The business plan will determine if your business idea is worth starting and if your business idea will actually make money.  The business plan is the one single item that banks, venture capitalists, and private investors will require of anyone seeking money to start up a business. While writing a business plan always seek advice from experts in the industry you are trying to create a business in.

In developing my business plan I have researched a number of experts in order to learn how to write an effective business plan.  One expert that helped me to write an effective business plan is Dave Lavinsky. The advice given by Dave Lavinsky is to create a business plan based on an idea that can be marketed and make money now. Too many would be entrepreneurs make the mistake of thinking people would invest money in their company based on a great idea. The economy has caused a shift in the investment trends for venture capitalist. Your business idea needs to be able to cash flow within the first year or better. While writing my business plan I researched other companies to see what made my company uniquely different from any other company in the market. I also developed my business to key in on an overlooked niche target market.

David Grumpert the famed author of “Business Plans That Win” advises that a person must determine what kind of business plan fits your company needs. After doing my research I determined that I needed a full business plan for my film company. A full business plan consists of 25-35 pages. I recommend 25 pages at the most because banks and investors tend not to read your entire business plan but rather target key areas.

My business plan changed significantly based on the advice of experts in the industry. By heeding this advice my business plan is more realistic and more suitable for investors and banks to fund my company. I would advise anyone to first research what the experts in your industry are saying about writing a business plan and obtaining funding. 

Business Plan Advice

Starting a business begins with an idea. This Idea is intangible has to be written down for the business to become reality.  Writing a business plan can be challenging  for new entrepreneurs who lack the skill to do so.  New business owners seeking to start new businesses can hire a business plan writer to write a professional business plan.  The business plan is the most important element needed to obtain venture capital .  A successful business plan should have a solid financial structure, unique concept, and marketing plan.

David E. Gumpert  is the author of  the best selling book entitled “Business Plans That Win”.  David wrote an online article for Bloomberg business week in which he explains the 5 types of business plans.  David’s advice is that you must first determine what type of plan is needed for your business. For new business owners, a full business plan is recommended. A full plan consists of  25-35 pages in which the business has a full explanation of  the business concept the company, location, the owners, financials, and marketing data.  Potential investors will not read the whole business plan but instead will review key  sections.

According to Dave Lavinsky, investors and venture capitalist are not investing in just a great idea anymore. In order to get funding for your business idea a business must be able to show strong marketing and the ability to create cash flow within the first year of doing business.  The business must be able to show that profitability going into the fifth year of business.  The current recession has caused investors and venture capitalists to scrutinize business plans to avoid  losing money.

In a special report written by John Tozzi  “The Truth About Venture Capital”.

John explains  that venture capitalist are looking for business plans and companies that have the ability to show fast growth.  “Venture firms focus their investments on the handful of industries where explosive growth is possible. Biotech and medical devices made up 23% of 2007's venture deals, according to the Money Tree Report. An additional 24% went to software companies. Retailing and distribution, consumer and business products and services combined accounted for 289 deals, or 8% of the total. Location counts, too. California is home to 41% of the companies VCs funded last year. An additional 13% were in New England.”(www.businessweek.com)

Despite this turbulent economy there is still hope for anyone wanting to start a new business. Avoid the use of  business plan software  because it is viewed as unprofessional. Seek the advice of an expert  if you are wary about writing a business plan. A well-written business plan with the correct information is a step in the right direction in obtaining funding to starting the business of  your dreams.

Sources

http://www.businessweek.com/smallbiz/content/jan2008/sb2008017_014641.htm

http://feedroom.businessweek.com/index.jsp?fr_story=a6be55484f395148180836b4e80cb8d042fb2c8e

http://www.businessweek.com/smallbiz/content/feb2008/sb2008021_536847.htm

Sims 2.1

Real estate has created more millionaires than any other industry to date. The real estate market is failing miserably in this current economic recession. Private real estate investors have found a secret marketing niche to make millions of dollars in a down real estate market. These investors have turn to Internet marketing. The Internet has created a paradigm shift to way real estate is marketing. D.C. Fawcett and Greg Clement have developed a real estate Internet program called SIMS profit system. SIMS stand for Smart Internet Marketing Solution. SIMS is a digital marketing and Internet implementation plan. Sims is has 8 modules that any real estate investor can use to explode their business online. The goal of SIMS is to change the mindset of a real estate investor from an investor to a “marketor” as Greg declares. Let’s look at Module 1.

Module 1 of Sims teaches how a real estate investor can create a host of websites; squeeze pages and blogs to promote a number of niche markets in real estate. Sims teaches investors to create a pipeline of leads through various sources. The amazing part of Module 1 is that every website, squeeze page, and blog is automatically linked to every social media site that the investor uses. Preston Ely is a millionaire real estate investor who uses social media to promote a host of digital real estate products through Facebook. Preston used social media sites that were linked to 30 squeeze pages (a page that a person opts into to receive certain information by giving their personal information) to build a large list of real estate buyers. Preston had the largest buyers list in Tampa, Fl. D.C. Fawcett is a luxury home short sales investor who used social media and websites that targeted luxury homeowners in foreclosure. D.C. generates over 3000 leads a month in which he makes over $100,000.00 a month. D.C. builds relationships with both investors and homeowner through newsletters and emails. Both the newsletters and emails are filled with psychological triggers that create action. These actions often result in investors purchasing D.C’s seminar or real estate product. Most homeowners request a call from D.C.’s office about facilitating the short sale of their home. My personal real estate mentor, Chris Bruce uses a subscriber-based blog to promote his real estate mentorship program. I had the pleasure of finding Chris’s blog on Google by accident. I opted in for a 7-day beginners boot camp and received a free eBook for requesting the information. Days later I received and email with an invitation to Chris’s webinar. I have been a student of Chris for 8 months now.

The use of the Internet and digital marketing is a powerful tool. I am currently developing my own real estate investing company. It is my goal to create a franchise that will not focus on one deal at a time. I want to use these Internet techniques on websites, blog, squeeze pages, web 2.0, video marketing, and offline marketing that will supply leads for years to come. Any business that is not using digital and Internet marketing will not survive in the future.

SIMS 2.0

The real estate market has created more millionaires than any other industry to date.  The real estate market is failing miserably in this current economic recession. Private real estate investors have found a secret marketing niche to make millions of dollars in a down real estate market.  These investors have turn to Internet marketing.  The Internet has created a paradigm shift to way real estate is marketing.   D.C. Fawcett and Greg Clement have developed a real estate Internet program called SIMS profit system. SIMS stands for Smart Internet Marketing Solution. SIMS is a digital marketing and Internet implementation plan. Sims is has 8 modules that any real estate investor can use to explode their business online. The goal of SIMS is to change the mindset of a real estate investor from an investor to a “marketor” as Greg declares.  Let’s look at Module 1.

Module 1 of Sims teaches how a real estate investor can create a host of websites; squeeze pages and blogs to promote a number of niche markets in real estate.  Sims teaches investors to create a pipeline of leads through various sources.  The amazing part of Module 1 is that every website, squeeze page, and blog is automatically linked to every social media site that the investor uses.  Preston Ely is a millionaire real estate investor who uses social media to promote a host of digital real estate products through Facebook.  Preston used social media sites that were linked to 30 squeeze pages (a page that a person opts into to receive certain information by giving their personal information) to build a large list of real estate buyers. Preston had the largest buyers list in Tampa, Fl.  D.C. Fawcett is a luxury home short sales investor who used social media and websites that targeted luxury homeowners in foreclosure.  D.C. generates over 3000 leads a month in which he makes over $100,000.00 a month.  D.C. builds relationships with both investors and homeowner through newsletters and emails. Both the newsletters and emails are filled with psychological triggers that create action. These actions often result in investors purchasing D.C’s seminar or real estate product.   Most homeowners request a call from D.C.’s office about facilitating the short sale of their home.   My personal real estate mentor, Chris Bruce uses a subscriber-based blog to promote his real estate mentorship program.  I had the pleasure of finding Chris’s blog on Google by accident. I opted in for a 7-day beginners boot camp and received a free eBook for requesting the information.  Days later I received and email with an invitation to Chris’s webinar. I have been a student of Chris for 8 months now.  

The use of the Internet and digital marketing is a powerful tool.  I am currently developing my own real estate investing company. It is my goal to create a franchise that will not focus on one deal at a time. I want to use these Internet techniques on websites, blog, squeeze pages, web 2.0, video marketing, and offline marketing that will supply leads for years to come.  Any business that is not using digital and Internet marketing will not survive in the future.

The art of Bifylelodge.

Modern etymologists are baffled about the origins of the word "Bifylelodge". The word has taking the english language by storm. It is used in almost every form of the english language. It can be used as a noun, a verb, and adjective. The mystery of the creation of the word is deeply rooted in a blend of urban colloquialisms.  Bifylelodge is a mixture of the meaning of the words bullshit, fraud, and the slang use of the word Fly. Thus is the meaning of the multiple uses of the term in the english language. For example you have just read a bunch of Bifylelodge!

Digital Evolution

The way movies were advertised before the creation of the Internet was limited to advertising via television and publications. So what has changed? Technology is evolving at a phenomenal rate.  In order for advertising and marketing agencies in the film industry to keep up with the current technology, agencies have started to apply digital and mobile marketing techniques to reach moviegoers worldwide. These agencies now marketing through the Internet, smart phones, and book readers.

The Internet has singlehandedly changed the world. The way millions of people bank, share information; research topics, and seek employment are all done differently because of the Internet. The Internet opened a universe of new ways for movie producers to reach audiences. Online advertising allows production companies to place ads on millions of pages viewed daily by subscribers. Trailers for the new blockbuster movies coming out could be seen on social media sites when users login to their accounts.  After viewing a trailer the user could simply click on link that would allow them to buy tickets. Advertising movies on Social media sites alone can drive millions of viewers to the box office.

The creation of the smart phone has created various avenues for moviemakers to get their products out to world. Let’s key in on a niche market for smart phones, smart phone applications or apps for short. Smart Phone apps are applications that a user can download to their phone for free or for a fee. These applications are designed for specific functions that meet the users needs.  Filmmakers have created applications that will market and advertise their products to app users. For example, Fandango has an app for the I Phone that will allow users to acquire movie tickets from the I Phone. For more movie apps visit http://www.slashfilm.com/iphone-apps-for-movie-geeks/.

Society is slowly transitioning from paper products to the digital products. Major publishing companies are going out of business because of the recession. Consumers are no longer able to afford monthly subscriptions for a newspaper or magazine. Ironically consumers will still buy a new I Pad or new book reader to read their favorite books and magazines digitally. Publishing companies are now offering subscriptions on I Pads and book readers for their users.  These subscriptions can be paid for a monthly fee or on a yearly basis.  The newest trend in publishing is digital books and magazines. This technology is still being created, a digital book or magazine will allow the reader to read articles and view advertisements interactively. Click here now http://www.dfnionline.com/DFNI-digital.html. So imagine a new film trailer being advertised in a digital book or magazine that will give people an interactive experience.

The E-Book Factor

The world of publishing is changing rapidly as physical books are being translated into digital mediums. The old way of publishing is a slowly dying business. Major magazines and publishing titans are losing billions of dollars because of the economy and the emergence of authors who deciding to self publish. The Internet has shifted the balance of power from the publishing company to the author. The Internet gives the author the ability to self produce the project, promotion to millions of people, and cause the major publishing companies to seek co-publishing deals with the author.

The ability to self- produce an e-book has become an easy and simple process. An author can find everything that is needed to create and produce an e-book online. For example: John Smith can write a book using a basic Microsoft word program. Once the book is edited, John can design his own book cover by downloading free book cover templates by doing a basic Google search.  John can upload his own picture on the back of the e-book cover and design the front cover by using Adobe Photoshop. Now John has an e-book that is ready to be marketed and promoted.

The Internet is a great tool to promote and market an e-book. If this process is done correctly an e-book can make an author millions of dollars. An author can explore millions of niche markets to promote their product. Once the author finds his or her niche market, the author can create a marketing campaign to target customer within the niche market. This method is effective because the target customer is already interested in what the e-book is about. Marketing campaigns can but set up on search engine sites such as Yahoo or Google and social media websites such as Facebook.  By utilizing these marketing techniques an author can reach millions of customers.

Major publishing companies have decided that the Internet and the ability of authors to self publish their work, is not a fleeting phenomenon. This new trend of publishing is here to stay and it is growing at an alarming rate. To salvage their slowly dying companies, publishing companies are beginning to offer co-publishing deals to authors who have a large consumer base for their self-published work.  The co-publishing deal would allow the author to get a major distribution deal, share the copyrights, and royalties with the publisher equally.

E-books are here to stay. My advice to any author looking to get a major distribution deal would be to self publish a few projects and market them online. Create a viral buzz about yourself and your books through social media to develop a following. It will not be long before a major publishing deal will be sitting on your desk.

Ways to get a Co-Publishing Deal

The old ways of publishing are dead. The economic climate combined with frustrated authors who are tired of major publishing companies taking most of the profit from their work, has led authors to self- publish their own books.  These methods can be contributed to recent trends created by the Internet. In recent years authors have been able to harness the power of the Internet to self-publish and market their books to the millions of people. Major publishing companies have been unable to hold to the traditional ways of offering authors publishing deals where the publisher owns the copyrights to the authors work and keeps 85% of the profits and the author receives only 15% royalties from the books. The Internet and the economy has allowed independent authors to level the playing field in which major publishers are offering co-publishing deals to independent authors. Co-publishing deals are created when the author has sold a large amount of copies of their book, has created a sizable fan base, and can market to a large amount of people.

A co-publishing deal is when the publisher offers the author a deal to publish their books for an equal share of the copyrights and royalties. Co-publishing deals in past years were rare and very hard to obtain. The growing trend of self-publishing authors has created a larger stream of revenue for themselves. The recession is causing major publishing companies to go out of business. Major publishing companies are losing billions of dollars yearly. So in order to stay in business major publishers are offering more co-publishing deals.

One way authors can position themselves to get a co-publishing deal is to use Print on Demand Companies to publish and distribute a book.  Using print on demand companies will allow an author to get a book edited, published, and distributed for an affordable price. If the book is successful, the author can sell a large number of copies. The author will also retain most of the profit while earning a greater percentage of royalties.

Another way an author can earn a co-publishing deal is to create a sizeable fan base by marketing and promoting on social networking sites. The power to create a fan base through social media is a powerful technique. An author can place a small ad on face book to create awareness of his or her book. As people begin to click on the ad and purchase the book, a phenomenon called a viral buzz happens. A viral buzz is when people begin to spread the information about the book by word of mouth, email and mobile messaging.  The word will also reach major publishers, who in turn will seek to gain profits from the fan base through the author.

Lastly the Internet offers a number of marketing avenues to for authors to reach a large number of people. We have discussed how using facebook is effective. Another social networking site is Twitter. Twitter is a social networking site where people can post links to their websites, talk about their favorite restaurants, and become followers to each others Twitter page.  An author can create a blog that talks about his or her book. Within the blog the author can add a link to the purchase page of the book.  The author can also write a press release to announce the release of the book. The author can also create a personal website that will allow fans to enter their names and email addresses. The website will also have an e-commerce link for fans to purchase the book and also a forum page for fans to leave a comment. This personal website will allow the author to build a large database of customer that the author will use to build a relationship with. When the author has a new project coming out, the author can simply e-blast the database to promote the new project. These methods require a lot of effort but can be done overtime. Once implemented the author can expect to gain popularity and profits.

Protecting Your Business From Liabilities

All businesses created must be created with some form of legal protection in place.  The film industry is one of the most litigious industries in America. Film companies face lawsuits daily as parties file claims of copyright and trademark infringement. Another film company maybe sued for violating child labor laws in regards to child actors. With all of these litigations happening, how does a new film company protect themselves? We are going to analyze actual litigations and determine what provisions are needed to protect our businesses from potential lawsuits.

In employing the use of minors in the entertainment industry, Sanchez v. Nickelodeon provides a good example of what a film company should give adherence to. Caitlin Sanchez was hired at the age of 12 by Nickelodeon to play the animated character Dora, the star of Dora the Explorer.  Caitlin was paid $5000.00 per episode as well as some residuals from the Dora character. When Caitlin turned 14 years of age she went through puberty in which her voice changed. Nickelodeon fired Caitlin stating that her voice was no longer suitable to portray the Dora character. Caitlin’s parents filed a lawsuit for breach of contract and wrongful termination.  In examining the plaintiff’s arguments there are a number of violations that Nickelodeon is accused of.  1) Nickelodeon failed to have an attorney present when she signed a contract with Nickelodeon.  2) Caitlin’s agent and Nickelodeon forced Caitlin to unconscionably sign the contract. 3) Nickelodeon violated state child labor law in New York in which all contracts involving hiring minors must be review by the courts first before the contracts is legally binding.  I admonish all filmmakers to consult your attorney when you plan to hire a minor for your production. Be aware of the state laws concerning minors in which you are filming. Always make sure the minor has legal representation before initiating any contracts. The minor’s parents should be present at signing as well. 

Famed filmmaker George Lucas created “Star Wars”. In 1977 Lucas employed the use of Andrew Ainsworth to create the helmets for the storm trooper characters. Ainsworth created his own original molds for the helmets.  27 Years later in 2004 Ainsworth setup a website to sell his molds for the weapons and helmets he created for the movie.  Lucas filed a copyright lawsuit in the U.S. against Ainsworth who is a citizen of the United Kingdom. Lucas won a $20 million dollar default judgment against Ainsworth. In 2008, Lucas moves the case to the UK, Ainsworth files a counter lawsuit claiming that he owns the copyright and a portion of the $24 billion sold in merchandising.  In 2010, the UK court dismisses Lucas claims.  The protection of intellectual property is a must for any film company. In this case Lucas went into contract with a person who was not a United States citizen.  A film company in the United States may not always have legal protection in an international setting. Having an attorney who specializes in International Law on your legal team is recommended.  Note that a film can also create multiple sources of revenue in the form of toys, books, posters, clothing, etc. Consult your attorney to file the correct paper work to protect your intellectual properties.

The King’s Speech is a film produced in the United Kingdom that won best picture of the year. The American Human Association is threatening legal action based on the alleged use of a trademark certification. The British film uses the phrase “ No animals were harmed” in the making of this film. The phrase is trademarked by the AHA. The AHA has used this trademark power to demand certain rights of filmmakers who use animals on set. The AHA has no authority over the film while it is being distributed in the UK. However the Weinstein Co. is distributing the film in the U.S. The AHA is also threatening legal action against the Weinstein. Co if the words are not removed from the film in the U.S.  This situation teaches a potential filmmaker to 1) thoroughly search out all clearances and permission for any use for copyrights and trademarks, 2) having ownership of copyrights and trademarks allow the owners to have certain privileges, 3) once infringement has been discovered you have a legal duty to mitigate, 4) Know the scope of your jurisdiction. 

Structuring a film company to minimize litigation is a lot of work. The hiring of the right personnel is paramount. Having a legal team that can analyze all future work before production begins can save time and money.  A filmmaker must know how to create additional revenue streams through the creation of intellectual properties. These litigations serve as a guideline for establishing a successful film company. While no company can avoid being sued, having adequate legal protection helps.

Blog Resources

http://www.entertainmentlawupdate.com

Podcast episode  # 15

Podcast episode # 10

Podcast episode # 18

The Perils of Litigation

The movie industry is full of flashing lights, cameras, and famous faces. On the surface it would appear that the movie industry is one of the most lucrative industries to have ownership in. The latter statement is partly true; the movie industry is lucrative to many owners of major and smaller independent studios. For every blockbuster movie that is shown in theaters throughout the world there are literally thousands of lawsuits that are filed against the studios that produce them. Film litigations are the downside of owning a production company. It is not a question of “if” you get sued but rather “when” you get sued as it relates to producing films in Hollywood.  Film litigations are costly and can take years to resolve.  Another party may file a lawsuit against a filmmaker’s intellectual property such as a film or movie script. Let us look at a few film litigations to understand the many different causes.

The first litigation we shall review is the lawsuit filed by former South Carolina House of Representatives James L. Mann “bubba” Cromer Jr. against Showtime and HBO. Cromer created and filmed a movie called “The Hills Have Thighs” in 2008. The film is a comedic adaptation of the horror cult classic “The Hills Have Eyes”.   According to the article Cromer hired an agent to increase the films profile. After doing so Cromer saw an ad saying his movie would be aired at 1:30 am on a Showtime network called the movie channel. Cromer being excited emailed and called all of his friends to spread the good news.  To Cromer’s dismay, what was aired that night was a soft pornographic movie with the same movie title but with a different director. Cromer filed a lawsuit stating that by airing the soft pornographic film with the same title has caused action of defamation, violation of the Lanham Act, violation of the rights of publicity, intentional infliction of emotional distress and negligence. (Belloni, 2010)

I will merely state my opinion on this lawsuit.  It is my belief that Mr. Cromer is suing the wrong parties. There are a lot of movies that have similar titles. I think both Mr. Cromer and his agent failed to do their due diligence in the area of copyrighting.  Mr. Cromer should have searched to see if there were any films already made with the same title. Even now Mr. Cromer’s attorneys should be trying to ascertain when Salvadore Ross actually created his version of the movie. If the findings state that Mr. Cromer’s film was an earlier copyrighted film, then Mr. Cromer should sue Salvadore Ross for copyright infringement.  Showtime and HBO did not error in showing Salvadore Ross’s version of the film; it was shown after hours for adults. Mr. Cromer acted with haste and announced his film would be shown without thoroughly verifying that it was indeed his movie being aired. 

The next case is well known and many of us as moviegoers are wondering how will this impact the finish product.  It is the litigation between Warner Bros and DC Comics VS. the heirs of Jerry Siegel and Joe Shuster the creators of the “Superman” character.  The Siegel family in particular filed a lawsuit against Warner Bros. and DC Comics claimed that the family owned profits on the movie “Superman Returns” in relation to a “sweetheart deal” struck between Warner Bros. and DC Comics.  The heirs do not have any ownership of the copyrights to the “Superman” character until 2013. The families will own the entire original copyrights to the “Superman character” in which no new Superman films can be made without the families’ approval.  However the court did not rule in the heirs’ favor for the damages but warned Warner Bros. that if the production of a new Superman movie does not begin by 2011, then the families can sue Warner Bros. for damages in 2013 when the families reclaim ownership. (Wigler, 2009)

This case is clearly one that is based on knowing about copyrighting laws and the rights to intellectual properties.   I think the Judge made an error in this ruling.  I base my opinion on Title 17 Section 302 of the Copyright law of the Untied States of America. Under section 302 it clearly states the following ” (a) In General. — Copyright in a work created on or after January 1, 1978, subsists from its creation and, except as provided by the following subsections, endures for a term consisting of the life of the author and then to any heirs 70 years after the author's death.” Copyright Act (1976)

It has not been 70 years since the death of the creators of Superman.  Jerry Siegel died in 1996 and Joe Shuster in 1992.  In my opinion Warner Bros. and DC comics should pay the heirs profits from Superman returns.

The clash between church and state is more common than we may hear about.  Brazil’s archdiocese of the Catholic Church is suing Columbia Pictures for using unauthorized images of the world famous statue The Christ the Redeemer in the blockbuster movie “2012”.  The Brazilian Catholic Church commissioned Paul Landowski to create it in 1931. Under Brazilian law the copyright belongs to the author or work until his death and then to any heir and successors for 70 years.

The Brazilian Catholic Church wants Columbia Pictures to make a public declaration that the company did not intend to cause offense by showing the statue destroyed by a giant tidal wave in the movie. (AFP, 2010)

In my opinion this case is should be simple and to the point but unfortunately it is not. The main issue centers on international law. Columbia Pictures may have violated Brazilian copyright laws, but who has the power or jurisdiction to enforce Brazilian law on an American based company.  I think that Columbia Pictures should indeed offer an apology and settle out of court with the Brazilian Catholic Church in order to continue shooting future film in Brazil. In reality, Columbia Pictures will not be held liable for violating the use of the statue.

To read the articles cited in the blog click on the links below.

http://reporter.blogs.com/thresq/2010/03/lawsuit-says-showtime-hbo-swapped-exlegislators-film-for-soft-core-porn.html

http://splashpage.mtv.com/2009/07/09/warner-bros-dc-comics-win-superman-lawsuit-must-produce-movie-sequel-by-2011/

http://www.google.com/hostednews/afp/article/ALeqM5gJA2-7BRRgMAxlmx4kuMphqQJkVg

Great Networking Tips

        

The entertainment industry is one of the most competitive careers a person can pursue in life.  It takes a certain personality type to deal with people with inflated egos, power hunger production assistants, phony casting agencies, and outright rude directors.  But do not despair there is hope for those who can endure the initial illusion of champagne bottles, lights, and promises of stardom.  In reality landing a job in Hollywood is about having 10% talent and 90% networking ability.  In order to position yourself for the career you desire in the entertainment industry you must make a connection with someone who is already working for the motion picture studio or movie agent you want to work for.  In order to gain contacts in the industry there are a number of techniques you must learn. Here are a few keys to improve your networking. Learn to be a great conversationalist, avoid being apologetic, the art of working a room, and positional nosiness.

Learning to be a great conversationalist can open many doors for the person looking to work in the entertainment industry. Being able to seamlessly blend into the conversations of others without rejection or offense is a great skill.  The person who can grasp this technique will become the center of attention when he or she is speaking. A great conversationalist is viewed as a person who is confident, assertive, and professional. These traits are easily viewed by someone in a position to hire you as a great asset to the company. 

While networking at any entertainment event remember this cardinal rule “never apologize” when engaged in conversations. People who constantly apologize are viewed as weak or easily intimidated. Apologizing displays a person’s inability to handle difficult tasks, unable to meet deadlines, and lack leadership skills when a leader is needed.  Remember that you are socializing for a desired outcome. Perception is everything in Hollywood and the wrong perception could hinder your efforts.

The art of working a room is a great weapon to have in the arsenal of a networker. This one technique alone can gain a person entry into the presence of any CEO in the room. First check your attitude, a person must be able to approach strangers and establish a mutual interest while engaged in conversations. The person who takes on the attitude of “why should I bother to impress other people?” will create a negative energy that others in the room can feel. People will subconsciously avoid you.  Risk rejection by attempting to meet new people. One person may not want to talk with you but may refer you to the person you need to meet.  Keep conversations short without being obvious that you are merely talking to someone to get certain information. Avoid ending conversations abruptly as well. Short conversations allow you to establish more contacts attending the event.

 “Positional nosiness” is defined, as being in the right position to hear information that you were not suppose to be privy to.  Positional nosiness is an act of GOD, it just happens.  A person must be able to seize the moment without appearing as someone who is eavesdropping.  While working on a movie set as an extra, the producer was having a conversation with the casting director about needing a stand-in actor for one of the movie stars on set.  At the time I was in the wardrobe tent and over heard the conversation.  As they were talking I realized that I fit the actors description.  I finished dressing and casually walked out of the tent right past the producer and casting director.  Before I knew it the producer stopped me and asked me to stand- in actor for the movie star.  Positional nosiness is a great way to land a job in Hollywood.  

Networking is a necessary skill to master for anyone looking to gain entry into any industry.  The old cliché “It’s not what you know but who you know” holds true in Hollywood.  Networking is a way to avoid dealing with the gatekeepers of the industry. So remember to practice becoming a master networker and before you know it, you will be working in the industry of your choice.

The business of Managing Film Agents.

So you want to be an actor? A lofty goal with great rewards but the pitfalls and obstacles are many.  To navigate the entertainment industry in the areas of music and film, most people rely on securing the services of an artist manager or agent. For an actor, an agent is the person that would help an actor break into the film industry. The agent and actor would form an agreement in which the agent would secure work for the actor for a fee.   In an recent interview with a industry insider, I learned a different approach to hiring an agent. Our industry insider has appeared in “The 40 year old Virgin”, “Weeds”, and the new television show “No Ordinary Family”. The topics discussed included: why does a person need an agent, what an actor needs before talking to an agent, and the mindset an actor should have when dealing with agents.

According to our industry insider, one of the most common mistakes a new actor makes is misunderstanding that having an agent will guarantee steady work in the film industry.  An agent can only submit you for roles that meet the criteria that the studio is looking for.

If the actor does not meet the studios’ criteria then the agent is incapable of finding constant work for the actor. Our industry expert offered a solution to this dilemma. He stated that the agent must overcome this problem by negotiating with the studios to alter the criteria of the role. The agent must also present his client as the most marketable person for the role, not the most talented. This is key! The more marketable the actor is may affect the success of the project. Marketable actors will help determine what audience will show up at the box office. So in essence an actor needs an agent who is proactive in providing roles based on how marketable an actor is. In the beginning the agent must seek roles for the actor based on volume. As the actor makes a name for his or herself and has an established image, the agents’ focus should focus on higher paying quality roles.  This is the primary function of an agent.  Our industry insider will not sign with an agent who is not capable of this function.

Our industry insider was adamant about actors establishing themselves as an independent business first before signing any contract with any agent. This concept was taken from Michael E. Gerber the author of the best selling book called E-Myth.  The actor is the business and he or she must work on the business and not in it. The actor must establish a personal brand in which every role, television appearance, and radio interview must be create revenue and publicity for the business.  If the actor signs a contract or endorsement deal, having a legal entity in place will help with legal issues that may arise.  Most actor have no idea of this concept, therefore their careers falter when the industry takes a turn for the worst.

Mindset is the most important attribute that an actor must have in place before talking with an agent. Having a mindset of being success is only one part of the equation. An actor must think and operate as a CEO but know when to act as an employee. Too many actors rely solely on talent alone that hinders their career when no roles are available.  The actor must have his or her hands in every aspect of the film industry. When no roles are available, the actor and his agent must create new streams of revenue by pitching scripts, television pilots, and reality shows in which the actor stars in and have ownership in. Our industry insider sees the industry as a numbers game. Audition for as many roles as possible, somebody will say yes. The object is to get your foot in the door and bring your company with you. The agent should help facilitate this process while acting as an independent contractor of the actors’ company.  

Elements of Negotiation

             The word negotiation is heard often in the world of entertainment. On a daily basis we watch television shows like “Entourage” where the star’s manager and agent are in constant negotiations with each other about what movie role the star should take.  What about in real life? We see people at the local Starbucks drinking coffee or at Panera Bread having lunch, all while negotiating a deal. Negotiating is a daily part of our lives.  We negotiate more with ourselves than we do with anyone else. In the entertainment industry negotiation is a key skill that is necessary to be successful.  I had the pleasure of interviewing a successful individual in the entertainment industry who has mastered the art of negotiation. For reasons of confidentiality we will name the individual Mr. Lee. During the interview with Mr. Lee, he talked about certain elements of negotiating process. These elements are objective criteria, leverage and power, and status.

            Mr. Lee stated that he negotiated a tour for a well-known R&B star. While negotiating with one of the tour venues, a pricing issue arose concerning the percentage that the venue should receive per ticket sold. Mr. Lee never goes into negotiating a deal without using objective criteria. He has a goal in mind that needs to be accomplished by the end of the negotiation process.  The venue manager wanted 35% of the ticket sales as opposed to the 25% that was agreed upon. The venue manager advertised underpriced tickets by mistake and had sold a number of seats. To avoid having to refund the money for the underpriced tickets the venue manager wanted a larger percentage. Mr. Lee knew that 35% percent was not fair for the artist nor the future of the tour. If the other venues on tour heard about this incident then every venue would want to re-negotiate and the tour would lose major money. Anything over 30% would not work for Mr. Lee. So Mr. Lee negotiated for 28% and guaranteed that the artist would perform an extra 30 minutes on both nights of the show. The venue manager would redeem his mistake without having to pay refunds to customers and the artist would get rave reviews before performing at the next venue on tour.

            I asked Mr. Lee what was the key to effectively winning while negotiating. He smiled and simply said “leverage is the key.”  Mr. Lee said that negotiating and research are siblings and you cannot have one without the other. Mr. Lee expressed that he knows everything about the person he is negotiating with as well as the deal he is negotiating on.  Then Mr. Lee researches other deals the person has negotiated and the outcome of those deals. Mr. Lee looks for things that the person does not expect to come up in negotiating.  This technique was used while negotiating a marketing deal for the movie “The Express” the story about Ernie Davis who was the first African American college football player to win the Heisman trophy.  During the negotiation process Mr. Lee was viewed as smaller marketing firm who the film producers had never heard of.  The larger firm who was also in negotiations with the film producers was well known and had a record of marketing a number of films. Mr. Lee researched the other firm and discovered that the maliciously overcharged clients while only marketing to a limited market.  Mr. Lee asked the film producers to identified their target audience and asks that both his firm and the larger firm to present data from marketing campaigns performed within the last year. Mr. Lee and his team produces the data while the other firm did not.

            Ego is also known in the negotiation arena as status. Status could be described as a person in a position of power who expects to be treated in a certain way or how you compare yourself in relation to someone else.  Mr. Lee’s philosophy on addressing status while negotiating is to be confident but humble.  Being comfortable in his abilities allow Mr. Lee to negotiate with famous actors and R&B singers on a daily basis.  Mr. Lee is always respectful but stern when negotiating. He recently negotiated a role in a stage play for a certain actor. This particular actor demanded a certain salary while touring with the play. Mr. Lee expressed to the actor that the salary expectation was unrealistic. The actor became belligerent even to the point of using profanity. Mr. Lee smiled and said,  “You are a great actor. No one doubts that but your personality has caused you to not get roles.” After a long pause the actor apologized and agreed to star in the play. Mr. Lee has become a master at knowing when to cater to a person’s status and when to challenge it.  

            These are but a few of the elements used in the art of negotiation. The interview with Mr. Lee was very insightful. He taught me that when negotiating to always be confident, humble, and do your research. Look for some form of leverage to gain power. Use the power to create a fair deal. If you practice these techniques daily you will become a master negotiator.