Life Events And The Art of Reduced Capacity Blogging

Dear friends and readers.  Starting December 31st, 2012 and continuing through March 1, 2013, I will be stepping away from The [Legal] Artist to devote my time to some off-blog business.  While I expect to be fully engaged during that time, I hope to slip away now and again to muse about the various intertwinings between art and law, so check back once in a while for a nugget or two.  Once March rolls around, I will be back up to speed and blogging like a maniac.

Thank you all for your readership.  Until March, I wish you all a Happy New Year and a prosperous 2013!

Sweat the Business Stuff Redux: Patience and The Art of Turning Your Art Into Your Business

While visiting my family in Connecticut over the holidays, my mom came to me on behalf of a friend who had a legal question.  This friend "Sally" is a middle school teacher and had developed a unique idea for an educational curriculum for science teachers.  She wanted to market and sell the curriculum, but had some concerns over whether she could use the title she came up with.

Since I was in the Christmas spirit and Sally was operating on a budget of less than zero, I told my mom that Sally could very easily (and for free!) run a trademark check at the U.S. Patent and Trademark Office website (titles are protected under trademark law, but only if registered through the USPTO).  If the title was available, the website explained how she could register it and what it would cost.  I also suggested to my mom that Sally find a way to hire a lawyer despite budget constraints because A) I'm not licensed to practice law in Connecticut and therefore couldn't provide anymore worthwhile advice, and B) there might be some trademark dilution issues if the title was too similar to something else already out there.

A few days passed and my mom told me that Sally had gone to the USPTO website but ended up without any answers.  To Sally, the website was difficult to navigate and understand; she wound up more confused than ever.  When my mom asked me what Sally should do, this was my answer:

"Sally should hire a lawyer.  If she can't afford one, she'll have to become her own.  That will mean spending a lot of time being confused at first.  But eventually she'll understand and be a better business owner because of it."

In the past, I've spoken about sweating the business stuff, but I haven't really detailed what that means for all you budding artrepreneurs out there.  So by way of closing out the year at The [Legal] Artist, here are the top three things you and Sally need to do to turn your art into your business:

(1) Have patience.  Seriously, this may be the most important thing I ever tell you.  Artists, by nature, are doers who thrive on activity and creation.  That's a wonderful thing in my opinion, but successful businesses require someone behind the wheel to be thinking and planning, playing the long game (for your Boardwalk Empire fans out there, think of it this way: every Lucky Luciano needs a Meyer Lanksy).  And playing the long game requires patience.  In Sally's case, if she can't hire a lawyer to walk her through this process, she's going to have to do it herself.  Which means looking at a lot of documents she won't understand.  Sally will end up frustrated and agitated and the business will take off a lot slower than she wants.  But that's okay!  If she has patience and keeps at it (with a little help from Google) these complicated things will eventually seem less complicated.  When I started law school, I had to read each case 3-4 times before I understood what I was reading.  With some practice, I learned how to do it in a fraction of the time.   If Sally spends an hour or so clicking around the USPTO website, eventually it will start to make sense and she won't need to pay a lawyer $400 an hour to do something she can do by herself for free... if only she has some patience with the process. 

(2) Decide what kind of form your business will take.  There's no doubt about it - people take you more seriously if you're a business.  Years ago when I was a young television producer, I went out to pitch a number of TV show and script ideas.   One network executive looked me right in the eye and said "we like you, but we will not do business with you until you incorporate."  A week later, Hammerspace Productions LLC was born. 

If you want to turn your art into a business, then you're going to have to actually turn it into a business; that means deciding what type of business you want to create.  For artrpreneurs, the most obvious choices for business type are sole proprietorships (if you're the only employee) and LLCs, mainly due to the low start-up costs and paperwork.  There's a good article here explaining the difference, but the gist is that with an LLC, you pay income tax for both yourself and the business, but the business shields you from personal liability (if you're sued, they can only come after business assets, not your personal assets).  With a sole proprietorship, you only pay taxes on the profit you make, but you are open to personal liability (meaning someone can sue you for the acts of your business, putting your personal assets at risk, such as your checking and savings accounts, and even your house).  In a sole proprietorship, you generally do not file any documentation with the state, whereas an LLC requires certain documentation to get going (such as a federal EIN, state and federal tax documents, etc).  Check with your state's Secretary of State to find out wha documents they require.

(3) Draft a business planThis is a tough thing to ask of artists because it requires them to think about things like taxes and finances and long-term planning.  Hell, even after seven years producing and three years of law school (and dozens of jobs and internships in between) I'm still struggling with it.  But a business plan is extremely necessary for two reasons:  First, it shows outsiders that you're serious and have given your business some thought.  Second, it lays out a path for you and helps you understand steps you need to take to get your business off the ground.  A business plan need not be written in stone.  It should be a living document that grows with the business.  Put in as much or as little detail as you want.  Regardless of whatever form the plan takes, it should impart one clear message: you have thought about this business and know what is required to make it a successful one.

As you build your business, there will be a lot of little things to consider.  How will you accept payment?  How will you market your wares?  Will you pay taxes yearly or quarterly?  All of these things are important on some level, but getting these big decisions made will take some time, so don't rush it.  Have a little patience.  I promise that you (and Sally) will be glad you did.

Have a Happy New Year everyone!

"Caveat Emptor" or Why It's [Kind of] Okay For Facebook and Instagram To Steal From You

"If you are not paying for it, you're not the customer; you're the product being sold."

- Meta-Filter user blue_beetle

instagram

I had planned on writing about Instagram's massive PR shit-storm this week so I could address the ramifications of its new terms of service; you know, where they basically said to their users "you still own your copyrighted work, but we're going to strip away all the rights surrounding that so we can make money off your work and you can't do anything to stop us." [If you don't know, Instagram proposed that they could sub-license photos you posted in the app to other entities such as advertisers without paying you, the copyright owner]. I ended up not writing about it because the backlash was so big and swift against the social network that they backpedaled, reverting to their old terms of service.  Thus ended the issue in my mind.

Then I had a change of heart because I realized that this was a good time to discuss a topic that I think everyone should be well versed on: caveat emptor, a.k.a. let the buyer beware.  Caveat Emptor has its roots in property law and the idea is pretty simple: you should do the research when you buy something.  If you fail to cross all the "t"s, dot all the "i"s, you don't have any legal recourses when you buy something that turns out to be defective. When you sign a contract, courts presume that both sides know what they're getting themselves into.  That's why you generally can't plead ignorance when a contract screws you over.

So when blue_beetle says "if you are not paying for it, you're not the customer; you're the product being sold" he means that when you sign up for a Facebook or Instagram account, you have to assume that these services want something from you, and you should read their terms of service and find out what you're getting into.  And truth be told, I [mostly] agree with blue_beetle.  Now I certainly don't condone someone profiting off your copyright without giving you a cut.  And I really get up in arms when large corporate copyright holders try to stick it to individual artists who don't have the power or wherewithal to fight back.  That violates everything I stand for.  But people do need to have  certain expectations when they sign a contract with these services - and make no mistake, a Facebook or Instagram account is a legally binding contract.  These services are not charity organizations; they are corporations (or rather, a single large corporation due to Facebook's acquisition of Instagram earlier this year) and the paramount driving force of a corporation is to make lots and lots of $$$.  If that means exploitation of its user base, then so be it.

When Facebook shares your personal information with advertisers, you don't have an expectation of privacy to that information.  After all, you shared it freely and willingly.  And even if you limit which users can see that information with Facebook's privacy settings, your information is never private to Facebook - your contract is with them, not with other Facebook users.  Meanwhile, if Instagram decides they want to license photos you share to advertisers, then can do it simply because you agreed to their terms of service.  Is it ethical?  Not really.  But is it legal?  Unfortunately it is.

I believe that the first step to controlling your artistic destiny is becoming vigilant to the situations you get yourself into. When you post a picture to Facebook or Instagram, you should understand that they will take some level of ownership over that picture.  Despite my many gripes, I will be sticking with Facebook and Instagram for the time being.  I understand that they want something from me and I'm willing to accept that in return for the personal and commercial benefits I derive from using those social networks.

But just because something is legal doesn't mean we have to let them get away with it.  There are other ways to measure success beyond a lawsuit.  For example, exploiting users' copyrighted work as Instagram tried to do this week is pretty bad policy.  We know that because the level of apoplexy that erupted forced Instagram to scurry back into the warm (if financially shallow) embraces of its old policies.   Instagram knows isn't the only photo sharing app out there with neat filters and it learned that if it can't work WITH users instead of against them, well there's always Flickr and Hipstamatic waiting to take your business.  And they'll be much more agreeable to having terms that benefit the user.

Happy Holidays everyone!

[Author's correction: in my post a few weeks ago about the Facebook copyright policy issue, I stated that Facebook can't arbitrarily change its terms of service once you sign them.  While that is generally correct in normal contract situations, that is not how it works with services like these.  Both Facebook and Instagram state in their terms of service that they may materially change their terms at will, and by continuing to have an account with them, you agree to those  new terms.  I think that such terms are probably bad policy as well, but I see nothing legally wrong with them.  If there are any contracts attorneys out there who are willing to educate me otherwise, I'm all ears.  I'd love to hear that such terms violate some law or another.]

Filmmaker-2-Filmmaker: Tip 4 - You Need To Insure Your Gear

camera-repair-1A few weeks ago, I was on the phone with my cousin, a freelance photographer living in Los Angeles.  He had been shooting some fashion shots at a client's warehouse and paused to look over some of the slides with the client.  He set his camera on the ground and one of the client's employees accidentally kicked it while walking by.  Luckily, the camera body (worth about $5K retail) remained intact, but the lens was shot to hell. It would cost him $600 to replace and he wasn't sure if he should ask the client to cover that cost.  On the one hand, the client was responsible and my cousin didn't have 600 spare dollars lying around.  On the other hand, my cousin is a freelancer and didn't want to risk losing the client by asking him to pay for the lens.  To add another wrinkle, he needed to get the lens replaced ASAP because he only had the one camera and couldn't book more jobs without it.

We discussed the pros and cons of approaching the client, but in my mind, time and ability to book more jobs was more important, so I told my cuz "file a claim with your insurance company right away."  His response: "I don't have insurance."  D'oh!

With the exception of acting or interpretive dance, every artist needs some form of equipment to do the job.   All art is reliant on it, especially film and photography.  Which is why you absolutely, positively, unequivocally without hesitation need to insure your gear.

Because here's the thing: your gear is the single biggest investment you will ever make in your work.  And if it gets damaged, your ability to do your job decreases exponentially.  You do have some legal options, but the law is not particularly user friendly, what with all the time and money involved in suing someone... money that you probably don't have lying around waiting to be burned.  And anyway, why sue when insurance is so much cheaper and easier?   Besides, it's not like you have an unassailable right to have the client pay for your damaged gear (unless the client agrees to it in writing which I've never seen in my seven years of producing television). In my experience, insuring your gear is the best way to cover your ass... especially in those early lean years when you really can't afford to piss off a client by demanding he pay for gear he broke.

Truth: early in my freelance career, I had upwards of $15K worth of camera and editing gear insured through a "personal articles policy" with State Farm.  Do you know how much I paid on a monthly basis to have that peace of mind? $10 a month.  And the policy covered theft, loss, and damage (even if I was the responsible party).  Having that coverage was a no-brainer.  And because of it, I never had to jeopardize a relationship with a client over equipment that was damaged, and I never had to cancel a gig because I couldn't afford to replace broken gear.

But let's say you have no insurance and your client smashes your camera to bits.  Let's also assume that your relationship with the client is beyond saving and you're willing to litigate.  From my seat, there are two legal options.  If you can't prove that your client maliciously destroyed your property but he/she is clearly to blame for its demise, you could sue for damages under a simple run-of-the-mill negligence claim.  Even if the damage was done by the client's employee as opposed to the client him/herself, the client will still be liable for it (in tort law, respondeat superior makes the actions of an employee attributable to the employer).

On the other hand, if you have some proof that the client (or the client's employee) willfully and maliciously destroyed your equipment?  You could sue under the intentional tort of trespass to chattels, otherwise known as vandalism.

The problem with litigation, of course, is the cost.  Not just in litigation fees, but in time.  An average lawsuit can take years to litigate and cost tens of thousands of dollars.  It's a serious investment that can get even more serious if you lose.  That's not even mentioning the emotional and creative suckage it causes.  And if you're a small-business owner or struggling artist, do you really want a lawsuit taking up space in your brain when it could be filled with creative stuff instead?  I spoke before about sweating the business stuff, and I think insurance is no.1 or no.2 on the list of smart, cheap things that will help your business in the short and long run.

No Credit For The Raven Boy: When The Work For Hire Doctrine Screws Over The Little Guy

[Author’s note: as with everything legal, I speak here in generalities.  Every case is different and if you have a specific legal problem regarding one of the issues I speak about below, you should contact an attorney right away.]

the-raven-boys-book-cover (1)Last week, The Atlantic Wire posted this piece on 25 of the Most Wonderful Book Covers of the Year.  Each book mentioned was accompanied by an image of the book’s cover jacket and to my great delight, number 19, The Raven Boys by Maggie Stiefvater, was on the list.  This was a big deal for me because The Raven Boys cover was illustrated by my buddy Adam Doyle.  You can check out his original painting of the cover, as well as many of his other amazing works at his website.  I’ve known Adam for ten years and on top of being a damn talented painter and illustrator, he’s a great friend.  He’s the one who designed the lovely logo adorning this website.

Unfortunately, Adam wasn’t recognized in the piece as the artist of The Raven Boys cover.  In fact, none of the artists were credited for their work; only the authors and the publishers were named.  Adam pointed me towards the article and asked me my thoughts.  "Well," I pondered, "that sucks because every artist should get credit for the work they do."  In reality, there’s little money in being a professional artist, so credit is frequently the only reward.  I also know how hard Adam works and how seriously he takes his job, so it’s especially maddening to see him not getting the recognition he deserves.

The lack of crediting upset me, but I became especially uneasy when I noticed the article's comments section teaming with non-lawyers using terms like "infringement" and "breach."  Some felt that use of the images in the articles, without proper accreditation, was a violation of the artists' copyrights. But that argument actually wrongly combines the issue of accreditation (or lack thereof) with the issue of using of images against the wishes of the artists.

So first off, failing to credit the artist in an article praising the art is not legally actionable under any standard that I’m aware of.  It's bad form and maybe bad journalism (and frankly a little weird), but it's not a legal right to be credited as the artist of a particular piece of work. [I should note that at no point did Adam complain or even ask me for legal options.  He was just curious about my take on the situation.]

Secondly, there is no copyright infringement going on here. Here are two reasons why.

(1)  The artist most likely doesn't own the work.  Generally speaking, if you’re an artist and you create a work of original expression, the copyright belongs to you.  But what if you’re hired by someone to create a work of art?  That’s what copyright attorneys refer to as a “work for hire”, which in its broadest terms, means that the copyright is owned by whomever commissioned the work, not the artist hired to create the work.  The ownership of a work for hire is determined by the employer’s motive and desire, not the artist’s handiwork.

In this case, I would wager that most (if not all) of the artists were commissioned to design the book covers, meaning that the copyright is owned by the entity that hired them in the first place – the publisher.  This is especially important for artists to know because so often they assume "if I created the work, then I own it."  Not so.   Here's a tip: if you're an artist and you do a work for someone without a written or oral contract stating the terms or ownership, you should assume that you are not the copyright owner.  Artists needs to be aware of when their ownership over the work ceases because it can get them into trouble down the road (for example, licensing away rights to work they don't own).  In a case like this where the publisher is the owner of the book cover, it can do just about anything it wants with the image. Because of the work for hire doctrine, the artist has little or no say in the way that image is used.  That's the price of getting your work out there... relinquishing control.  Sadly, sometimes that means having to forego credit, even if it's rightly yours.

(2) Ownership aside, using the book cover images in the article is protected by fair use.  Fair use is a legal defense that allows you to legally use someone else’s copyrighted work without permission of the copyright owner.  Now fair use isn’t a get-out-of-jail-free card for every instance.  It can only be used in certain cases, like “criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research.”  Fair use says that it’s sometimes okay to use another’s copyright if the purpose of that use isn’t profitable.  After all, without fair use, we couldn’t criticize books, TV, movies without being sued.  CNN would get sued every hour of everyday.  Fair use protects against that.

The Atlantic Wire is ostensibly a news outlet (and even if it isn’t, the article clearly falls under the criticism or comment exceptions) and because of that, the website would not be liable for copyright infringement because it displayed images of the book covers.  That's why it didn't need permission to use the images of the book covers.  It was under no obligation to seek the artists' permission or credit them for their work.

So there’s no legal recourse for the artists, but can they do anything else to remedy the situation?  Sure. Their best course of action is some form of activism, such as petitioning the article’s author to amend the article and repost it with the artists’ names.  They can negotiate with the publishers to have their names published on the front or back of the book instead of the inside jacket (easier to see and find).  They can even talk directly with the book’s author to be credited on the author’s website.  In other words, the legal system isn't going to work in their favor, but there are plenty of non-legal options worth pursuing.