An Entertainment Industry Expert Consultation With Charles F. Matlock, Esq.

      When starting any business, it is prudent to consult with various experts in your field, but this is especially true for the entertainment industry, due to the many intricacies it holds. One of the most important experts an entertainment entrepreneur should consult with is an entertainment attorney. This is crucial in order to obtain expert legal advice that can protect you, and your business, from possible legal problems or disasters. In keeping with this suggestion, I recently contacted Charles Matlock, Esq., an Illinois entertainment attorney, who has been practicing law since 1996. Since AOAP is a new company, and there are other entrepreneurs who have either started, or are planning to start their own entertainment business also, I thought it would be a good idea to ask this attorney some questions about liabilities, resources, and general advice.

      My first question was regarding any general advice on things I should include, or not include, in my company business plan. Attorney Matlock stressed the importance of having a good entertainment lawyer review the plan in order to be informed of your legal boundaries. He stated that this was especially important because of the fact that entertainment companies generally deal with intellectual property (IP), and having an attorney who has a good grasp on law concepts relating to IP is critical because the lawyer can anticipate what could possibly happen. Attorney Matlock also suggested that the people who would have a working relationship with AOAP, such as engineers, songwriters, and sound designers, be included in the business plan. By identifying those individuals with impressive backgrounds and/or credentials who are key personnel for your business, this bolsters the credibility of the business as a whole in the eyes of prospective lenders and investors. Even if you are unable to list the names of these key resources, you should at least be able to specify what makes them unique, special, or an asset to your business. He said that this should help your business to stand out among many other similar companies in your area.

      My next question for Attorney Matlock was about industry liabilities that I would need to watch out for with a new entertainment company. The first thing he stated was that it is really important to have strong non-compete clauses and nondisclosure agreements, for employees or independent personnel working with the company.  Specifically, it would be smart to have legal documents that deal with nondisclosure and IP matters together, because of situations that can arise from those two matters. Matlock explained that there may be individuals who want to exclusively work for your business, and those who do not. Therefore, you might want to have an agreement that includes a “First Right of Refusal” concept, where you have the right to enter into a business transaction with the other party before anyone else can. He stated that this contractual right, or something similar, would protect you in situations where someone chooses not to exclusively work with your company.   

      Additional liabilities Attorney Matlock warned to watch out for, are liabilities incurred through people who enter or work in your place of business, due to wild/inappropriate behavior or unexpected accidents. Some people in the entertainment industry tend to have very colorful or interesting personalities, which could lead to incidents causing damage to the premises, or to the people there at the time. To protect yourself from this type of liability, he said it is critical to have good insurance for your business right from the start. The last liability Matlock mentioned, dealt with avoiding the possibility of going to court through the use of arbitration clauses in contracts.

      My third question was about suggested industry resources to use for my business. Attorney Matlock stated that it would be a good idea to establish relationships with unions such as SAG and AFTRA, and with entities that hold entertainment workshops and conferences that are in keeping with your intended purposes. He also suggested another organization called JAMS, which would be a good resource because they deal with dispute resolution.

      My final question to Attorney Matlock was whether or not he had any general advice for me as a new entertainment entrepreneur. He was adamant about the fact that I definitely needed to have more money than I would think that I needed, because things in entertainment are quite expensive. He pointed out the need to have money to pay for things such as equipment, location space, licensing, equipment infrastructure, sampling clearances/permissions, attorney fees, and other necessities. He stated that sometimes you can get items second hand or receive discounts, but not always, so you need to be prepared ahead of time to pay full price just in case. Attorney Matlock also suggested that you make the effort to surround yourself with people who have the utmost integrity, and to also try to pick seriously talented personnel and team members with great people skills. He also stated that as a business owner, it is important to know the extent of each person’s talent, and to only expect from them what you know they are able to offer.

      The advice given to me by Attorney Matlock was in response to specific questions I asked for my own entertainment business. However, his recommendations are excellent nuggets of wisdom from a seasoned expert that can serve as sound advice for any entertainment entrepreneur just starting out. Most importantly, take the necessary steps beforehand to protect your business from liability, by seeking legal counsel, and utilizing the appropriate entertainment resources available to you.