Saturday, September 29, 2012

Documentation

This week’s post will delve into the world of non-compete agreement, nondisclosure agreements and contract management.  Some may be familiar with these documents as they are very common in the entertainment industry.  They can be very beneficial when protecting your assets and client relationships. Documentation outlines responsibilities for all parties involved.  It's always exciting to start negotiations for a new contract or deal.  This signifies a beginning of a new relationship that with hopefully yield significant return for all parties involved.

I am building the foundation for Movis Media Group.  I have asked countless industry professionals about how the structure should be set up and each had something unique to add to the puzzle I am putting together.  Although these industry professionals were from different parts of the media and production industry, they all had something equally important to add as far as the administrative part of the business.  When I was first starting out in the production industry I was so eager to get calls about new projects I agreed to deals that wasn't always beneficial for me.  I found myself working for the project instead of the project working for me.  Let me further explain this conclusion.  I would show up for the shoot or production and start working on whatever they asked.  This was my first mistake.  I never outline the roles and responsibilities, so I would do more work than I was being paid for and I wasn't sure how to address the situation during the production, so I would suck it up and do all of the work.  These people were clearly taking advantage of the situation.  I was the only one to blame in the end, because I didn't create a proposal, contract or even get something via email.  I left myself open. 

It took a few times for me to final get it.  I had to ask the question, "What can I put in place to avoid confusion from verbal agreements?"  During the spring of my junior year of my bachelor's degree I took and internship with an animation company.  This was my first introduction to non-compete agreements, independent contractor contracts and non-disclosure agreements.  This was it.  These were the pieces to the puzzle I had dropped off of the table.  They fit perfectly.  The independent contractor document outlined my role and responsibilities with the company.  It also discussed my rate and details of the relationship between the company and me.  I also signed a non-disclosure agreement, which outlined the details of confidentiality.  We worked with many advertising agencies and even animated series that are slated for release in 2013.  These companies didn't want their ideas and productions leaked to the world prior to release. 

The non-compete agreement basically indicates the terms of working with clients in the same industry connected with the initial employer.  For example I invited a peer to work on a freelance set with me to make some extra cash.  This person later went behind my back to work with the company without me.  If I had a non-compete in place this person would have legal obligations to me.  Since I didn’t they were free to do whatever they wanted even if they were wrong for not including me.

I finally saw how big companies do business.  As a project manager with this company I was also responsible for recruiting new artists, negotiating rates, contracts, creating schedules and estimates.  This not only holds the company or artist accountable, it also protects the client and ensures they get everything they pay for.  Although I have worked with various clients and companies in the entertainment industry, I am still learning the ins and outs.  Do you think these legal documents would be useful in your business?  Do you have any documents you have found useful?