Entertainment Lawyers for New Mexico

Agencies often include early termination clauses that require a model to pay a fee if the contract is ended before the agreed term. Whether such a clause is enforceable depends on how it’s drafted, how large the fee is, and what state law applies. When Fees Can Be Enforceable Courts will enforce an early termination fee if it functions as a legitimate "liquidated damages" clause. That means the fee must represent a reasonable estimate, made at the time of signing, of the damages the agency would likely suffer if you left early. In modeling, agencies sometimes argue that damages are hard to measure because they involve not just lost commissions, but investments in test shoots, comp cards, web placement, or training. If the fee is tied to those actual expenses or a reasonable forecast of lost income, there’s a stronger chance it will hold up. When Fees Cross the Line If the fee is punitive rather than compensatory, courts typically strike it down. A flat $20,000 penalty whether you leave in month one or month twenty-four is a good example of a term that looks like a penalty. In the same way, if the agency invested little or nothing in you but still demands a large fee, a court would likely view the provision as disproportionate and unenforceable. Language in the contract matters here. If the clause is described as a “penalty,” that’s almost always unenforceable. Entertainment and modeling contracts are subject to additional scrutiny in certain states: • California: Talent agencies must be licensed under the Talent Agencies Act. The Labor Commissioner has authority to review and void unfair contract provisions. • New York: The General Business Law (Article 11) regulates employment agencies, including modeling agencies. More recently, the Fashion Workers Act has introduced protections to prevent abusive contract practices. • Other jurisdictions: Some states have “cooling-off” or rescission rights in service contracts, though these usually apply to consumer contracts rather than modeling agreements. Still, local labor or consumer protection laws can limit what an agency may charge. Practical Factors Courts Consider • Whether damages were genuinely uncertain at the time of contracting. • Whether the amount is proportionate to the agency’s actual investment or anticipated loss. • Whether the fee decreases over time as the contract runs its course. • Whether industry standards support the size or structure of the fee. • Whether the provision is unconscionable, either procedurally (presented as a take-it-or-leave-it contract) or substantively (so one-sided or oppressive that it’s unfair). Next Steps Review whether the contract calls the fee “liquidated damages” and whether it explains how the number was calculated. If it looks arbitrary or grossly out of proportion to the agency’s investment, you may have grounds to challenge it. Since statutes and case law vary widely by jurisdiction, the best step is to have an attorney experienced in entertainment or employment law in your area review the contract. The attorneys at Contracts Counsel would be happy to assist you.

For influencer agreements, make sure the contract spells out exactly how and when you’ll get paid. If it’s a flat fee, the amount and payment date should be clear. If it’s commission-based, you should know how sales are tracked, when you’ll see reports, and how disputes get handled. Watch for terms like “net 60” or “payment upon approval,” which can delay things. If you’re putting your own time and money into content, it’s fair to ask for partial payment upfront. Scope of Work and Deliverables Don’t leave anything open to interpretation. The contract should list how many posts you’re creating, what kind (Reels, TikToks, Stories, etc.), any required hashtags, and when everything needs to go live. Watch out for vague phrases like “other content as requested.” That’s a red flag and can easily lead to extra work without extra pay. Creative Control and Revisions Most brands want to approve content before it goes live, and that’s normal. But unlimited rounds of revisions can drag things out and kill your creative voice. It’s reasonable to allow one or two rounds of edits, tops. That way, you stay in control of your content and timeline. Exclusivity and Non-Competes If the brand wants exclusivity, make sure it’s specific. A clause that says “no competitors” could stop you from working with tons of other brands. Ask for clarity. Something like “other organic skincare brands” is more reasonable. Also, check the time limit. Thirty to sixty days after your last post is common. If they want more, they should pay more. Usage Rights and Ownership This part is big. Unless they’re paying you a premium, you should keep ownership of your content. It’s fine to give the brand a license to use it, but that license should be limited—by time, by geography, and by platform. For example, they can post it on their social media for six months, but not run it in ads forever. Be careful with phrases like “perpetual, worldwide, royalty-free rights.” If that’s in the deal, the payment should reflect it. FTC Compliance Whether or not the contract mentions it, you’re legally responsible for disclosing any brand partnerships. That means clearly tagging posts with #ad, #sponsored, or something similar. The FTC requires it, and if you skip it, you could get hit with enforcement (not just the brand). So don’t cut corners here. Termination and Cancellation Look at how either side can end the agreement. If the brand can cancel at any time, try to negotiate a clause that pays you for any work you’ve already done. The same goes for you. If you need to walk away because they don’t pay or violate the terms, you should still be compensated for what you delivered. Indemnification and Legal Risk You might see a clause that says you’ll cover the brand’s losses if your content causes a legal problem. That’s not unusual, but it should go both ways. If their product claims get you in trouble, they should protect you too. At the very least, your responsibility should only cover things in your control—like posting false claims or using copyrighted material without permission. Morality and Behavior Clauses These are meant to protect the brand’s reputation, which makes sense. But the language should be clear. It’s fair for them to back out if you’re charged with a crime or do something serious that reflects poorly on them. But avoid vague wording like “anything the brand believes could hurt its image.” That kind of clause is too subjective and risky. Governing Law and Disputes Always check which state’s laws apply and where disputes have to be resolved. If you’d have to fight a legal battle across the country, that’s a problem. It’s worth asking to use your home state’s laws or suggest neutral arbitration instead of court. Experienced contract attorneys at Contracts Counsel can guide you through drafting or reviewing your Influencer Agreement to make sure you're fully protected.

The question of whether a production company can terminate your Production Services Agreement without cause depends entirely on what’s written in your contract. Courts generally enforce clear termination provisions, so the language in your agreement controls. Most Production Services Agreements include one of three types of termination rights: • Termination for cause only: The production company can end the contract if you materially breach it—for example, by missing critical deadlines, failing to deliver agreed services, or overspending the approved budget. • Termination for cause or without cause: This gives the company flexibility to terminate for breach or at its own discretion, usually with a written notice requirement (often 30–90 days). • Termination at will: Either party can walk away at any time with little or no notice. This is less common in professional film contracts but can appear in short-form agreements or deal memos. Even when termination without cause is allowed, contracts usually include protective provisions such as: • Notice requirements: Written notice, often 30–90 days, so termination isn’t immediate. • Payment obligations: Compensation for services performed up to the termination date and reimbursement for committed expenses like location deposits or crew retainers. • Intellectual property ownership: Clear allocation of rights to footage, scripts, or other creative work created before termination. • Force majeure clauses: Termination permitted if outside events—such as a natural disaster or pandemic—make performance impossible. Termination for Convenience Clauses Many production companies include a “termination for convenience” clause that lets them end the agreement for any reason, or no reason at all. For them, it provides flexibility to respond to financing changes, scheduling conflicts, or creative redirection. For you as the filmmaker, it creates risk: you may lose the project after investing time and resources. To balance this, some contracts include a kill fee or other pre-negotiated payment to compensate the service provider if termination occurs without cause. If you’re negotiating future agreements, there are several terms worth considering: • Cure periods: A requirement that you receive written notice of an alleged breach and a chance to fix it before termination takes effect. • Minimum commitment periods: A guaranteed term during which the agreement can’t be terminated without cause, protecting your upfront investment. • Termination fees: A fixed amount payable to you if the company terminates without cause after a certain stage of production. • Work product protection: Clear confirmation that you retain ownership or continued use of creative contributions if the project ends early. Immediate Steps Since you’ve already entered into a Production Services Agreement, your next move is to locate the signed copy and carefully review the termination clause. Identify whether there’s a termination for convenience provision, what notice is required, and what payments are owed. Document all work completed and expenses incurred, since those will form the basis of any compensation if the agreement is terminated. If you're facing ambiguous contract language or suspect bad faith termination, consider getting professional legal guidance. Contracts Counsel's entertainment attorneys can review your contract's termination provisions, assess whether the production company is acting within their contractual rights, and evaluate your legal options if the termination violates the agreement.

If you're about to sign a podcast contract, stop and get legal advice first. These agreements can affect your creative rights, income, and control over your brand for years. Here’s what you need to know to protect yourself—and how to move forward smartly. 1. Who Owns Your Content? Ownership is everything. The contract should clearly state who owns the podcast, its name, the format, and anything tied to it like live events or merchandise. • Best case: You retain full ownership. • Minimum: Negotiate a limited-use license. • Red flag: Vague phrases like “all content created in connection with the show” could even include your personal brand. 2. Understand How You’ll Be Paid There are a few standard models: flat fees, revenue shares, or hybrids. But how the contract calculates and distributes revenue is critical. • Push for clear accounting language. • Ask for the right to audit their books. • Be wary of recoupment clauses that deduct marketing or production costs before you get paid. If revenue is involved, transparency must be non-negotiable. 3. Limit Exclusivity and Non-Compete Terms Don’t agree to anything that shuts down your ability to create elsewhere. • Narrow the scope: Limit exclusivity to similar shows in your genre only. • Protect your brand: Include exceptions for guest spots, unrelated media, or your own personal projects. These clauses can quietly box you in if you’re not careful. 4. Know How the Contract Ends. And What Happens After It’s not just about how you start. It’s about what happens if things fall apart. • Can either party end the agreement, and how? • What happens to your content and future payments? • Can you buy back rights or move your show to another platform? A fair termination clause protects your future options. 5. Guard Your Creative Control This is your voice, your show, your vision. Don’t hand over the reins. • Define who controls guests, topics, edits, and overall format. • Push back on any vague “editorial oversight” rights from the network. You should have final say unless there’s a very specific legal or platform concern. 6. Read the Fine Print Closely Today’s contracts often include language around AI, morality clauses, and unforeseen events. Make sure: • AI use is defined: Who owns AI-assisted content? • Morality clauses are narrowed: They should relate only to actual legal violations, not vague conduct standards. • Force majeure terms are realistic: These should protect you too, not just the network. 7. Work With the Right Lawyer Hire an entertainment attorney who works in podcasting and digital media. Not just any lawyer. • Look for someone who handles creator contracts regularly. • They’ll know what’s standard, what’s negotiable, and what’s a trap. This is a specialized area—get a specialist. 8. It’s More Affordable Than You Think Legal help doesn’t have to break your budget. • Most contract reviews cost $300–$800 flat fee. • Many lawyers offer low-cost consultations to help you gauge whether full review is necessary. A small investment now can save you from years of bad terms later. 9. Here’s What You Should Do Right Now • Request an editable contract for redlining. • Highlight unclear sections, especially around ownership, exclusivity, and revenue. • Research the network: Do they promote their shows? How have they treated other creators? Your leverage is highest before you sign. Don't rush. Don’t guess. This contract could shape your income, your brand, and your rights for years. Getting a qualified attorney to review your deal is one of the smartest moves you can make.