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Protection of Intellectual Property in Technology Startup
Aside from competence of management team, control of intellectual property is a major focus of investor scrutiny. The ability to identify and protect intellectual property directly reflects on investor confidence and the resulting access to capital available to technology start-up. Protection of intellectual property assets is available through the law of copyright, trade secrets, patents and trademarks.
Financing Technology Startup
Many startup companies, particularly in technology sector, require capital beyond the means of their founders in order to finance continued growth. Expenses quickly add up, and a business that cannot manage its cash flow will not survive. Because startup companies typically have a limited operating history and are considered to be risky ventures, obtaining even simple financing arrangements can be a difficult task.
Television Production Contracts
The traditional approach to creating a television program begins with a project that is suggested by a writer, other talent, a producer, rights holder, or in-house network personnel. The production company furthers the project by attaching talent and obtaining options for any underlying rights. The production company then seeks the interest of a network, broadcast, or cable. If a network becomes interested, the network will provide the financing necessary to create a pilot script and to produce a pilot episode, or a shorter demo. During this process the network is involved in the development of the script, casting decisions, and the determination of the show runner and director of the pilot.
Once the pilot is shot, the network makes a decision as to whether the series should be licensed by the network and added to its programming lineup. If the network is interested in the series, it will order a set number of episodes, generally 13 or 22, with annual options to renew the license for another season, generally 4 to 6 years. The network license fee may cover 80% of the production costs of each episode. The longer a television series airs, the greater the percentage of the production budget is covered by the network license fee. The writers, actors, and directors working on the project are all employed by the production company.
Traditionally, the independent production company owned the rights to the television series and merely licensed it to the network for two network broadcasts. After 1993, with the demise of the syn-fin rules, networks were given the ability to own or have an equity interest in the series. As a result, a network can demand a co-ownership interest in a series as a part of the agreement to initially pick up the series or to keep the series in the network lineup rather than cancelling the series, even though the network was not as involved in the creation of the episodes as the independent production company. In addition, networks are now able to produce television series through the network's own in-house production company. In this case, the network owns 100% of the rights in the series. This approach has arguably resulted in mediocre homogeneous product that is less likely to create breakout hits. Because the 100% ownership requires 100% payment of development and production costs, such failures may be costly.
A television production and licensing agreement should address terms normally included in every contract such as assignment provisions, governing law, remedies, confidentiality, notices, and so on. As for the specifics, most of the provisions found in television licensing agreements are fundamentally the same in nature as those contained in license agreements of any type (e.g., financial terms, term of agreement, licensed rights, territory, etc.), but reflect terms particular to the product and medium of distribution.
The Firm can provide a full spectrum of television production and licensing contracts for protection and exploitation of intellectual property in the television production industry. We can assist our clients on business and marketing issues and strategies (including risk management), the protection and exploitation of creative works (including trademarks and copyrights) litigation management, and other intellectual property.