Four Rights Issues That Can Ruin Your Digital Video Ad Campaign

By Extreme Reach  | 

Your agency has just released the perfect award-winning TV spot, and now you’re ready to bring it online. Think it’s as simple as uploading that clip to the server? Think again. With millions of dollars in fines and late fees at stake, here are four talent rights issues to watch out for when planning to launch your creative online:

Forgetting to create a contract for Internet use

This issue is the simplest, but also the easiest to forget. SAG-AFTRA, the main talent union that oversees voice and on-screen talent for the advertising industry, requires a different contract for internet commercial use than for television. Sometimes even if you know you need to make this payment, you’ll still need to remind your business affairs or talent rights team. Make sure to “check” that box.

Losing track of your Maximum Period of Use (MPU)

According to SAG-AFTRA, the “Maximum Period of Use” for any commercial spot is 21 months, or seven 13-week holding fee cycles. Agencies that lose track of this MPU run the risk of wracking up unauthorized usage fees, which tend to be significantly more expensive than late payment fines.

Not having proper online rights for movie or music

On top of the typical talent rights, use of movie clips or pop music in commercial spots typically require their own payment deals. If you plan to run a spot like this online, you can very quickly run into unauthorized usage fees in the hundreds of thousands of dollars. 

Assuming all talent and media rights terms are on the same schedule

Perhaps the biggest looming issue with talent rights is that many rights contracts are negotiated on different time scales. Even if you’re in compliance with your on-screen talent, you might still be incurring unauthorized use for celebrity talent, stock footage or music licenses, each of which run on different renewal schedules. The complex range of moving parts involved here makes it all the more important that your talent team keeps a watchful eye on each and every contract.

Recommended Posts