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?