TOMI Magazine November 2012

ENTERTAINMENT LAW THINK AGAIN L AWSUITS AFFECT SMALL BUSINESS

better than a multimillion dollar settlement later.

5. BUY INSURANCE. Liability claims costs com- panies billions every year; liability insurance can lessen or eliminate the potential for a massive claim against your small business. Incorporating your business, copyrighting your work, or obtaining a trademark, are all excel- lent steps towards protecting your business, but it’s not enough. Insurance doesn’t stop lawsuits, but it does give you added protection and lowers the cost of lawsuit payouts. A majority of indie entertainment com- panies start off as a company of one. While they might choose to remain a sole proprietor or incorporate, still they will however copy- right scripts, documents and other writings that really are the genetic makeup of their business. For example, a rap artist may legally copyright their lyrics or the entire album. A filmmaker may copyright the idea of a script; a synopsis. Then copyright the full script be- fore sending it out to agents. An upcoming business person has a great idea and needs to develop a business plan. That budding CEO may decide to protect their product with a trademark just in case someone else thinks of the same idea later on down the line and said budding CEO now has to prove first use. There are an array of reasons why businesses have to constantly protect themselves. Various types of small business should consider obtaining insurance. Types of busi- ness insurance are: General Liability Insur- ance used to cover legal hassles due to an accident, injuries and other claims of negli- gence (concerts, video shoots, filming). Prod- uct Liability Insurance is for companies that manufacture, wholesale, distribute, and retail a product that may cause safety issues ( clothing, hair care, makeup). Professional Liability Insurance is for firms and agencies tht offer a service protecting against malprac- tice, errors, and negligence (management, accountants, masseuse). Home-Based Busi- ness Insurance is a must for those companies who have not found their way out of the extra bedroom or basement. It adds on an addition- al rider to your traditional homeowner’s insur- ance policy. It can cover such risks from prop- erty damage (water and electrical damage, theft from break-ins, tornados and other natu- ral disasters). By doing a bit of research you can determine the best course of action your business should take when buying insurance for your business. – Tonisha L. Johnson

It was once thought that only large company’s had to legally protect themselves from would- be lawsuits. Not true. the same protective measurements applied to all. Small businesses are popping up faster than teenage acne. Everyone is taking their talents and turning it into cash. Even if you decide to sell lemonade on your neighborhood corner, you’d better have a vendor permit and some decent insurance. Otherwise, it can cost you. According to BOLT Insurance, small business spends $100 billion annually on legal action and 4x’s as much ($404 million) to set- tle discrimination related law suits each year. The entertainment industry is full of people who take advantage of ‘freedom of speech’: saying what they want to say. Fol- lowed by doing what they want to do. Using that to fuel and ignite questionable behavior in song lyrics, on stage… sometimes it can be taken in the wrong way. And sometimes, the artist truly is insulting and fans aren’t just fickle. Their offended. And some will sue. Here are a few ways you can help your small busi- ness: 1. NEVER BE SURPRISED. Acknowledge the possibility of a lawsuit and take steps to pre- vent it. Work to identify the areas of your business that are vulnerable as most lawsuits are preventable with an honest assessment of your business. 2. GET EVERYTHING IN WRITING. You can’t close a deal on a handshake. It must be done in writing—painstaking as it may be. Details, such as deadlines and costs, can be fudged later if it is not in writing. 3. INVESTIGATE AND DOCUMENT IT. When a client or employee has a complaint do some- thing about it! Investigate and document the investigation. Consult with an attorney to dis- cuss your findings and weigh the potential for settlement in a tricky situation. BOLTS FIVE WAYS TO PROTECT YOUR BUSINESS:

4. INVEST NOW RATHER THAN PAYING LATER. The cost of legal support is not cheap, but it is

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