Building a brand is both exciting and challenging and takes an extensive amount of time. In this first article of our creator series, we outline the key legal essentials that every creator should know to establish a strong protective foundation for their brand. Creators spend so much time investing in and building their socials – and knowing how to legally protect their brand is vital to long term success.
Setting up a company or operating as an individual?
Choosing the right legal structure for your business is critical. Whether you operate as a sole trader, limited company or partnership, your choice affects everything from tax obligations to personal liability and investment potential.
A clear legal structure:
- Helps to define ownership: can spell out who owns what within the business, which is especially important if you are collaborating with others.
- Protection: structures like limited companies have the potential to shield your personal assets from business liabilities.
- Streamlines revenue and investment: investors and partners are more likely to engage with a business that has a robust legal set-up.
- Supports future growth: can make it easier to hire, scale and enter into contracts as your brand evolves.
IP ownership and exploitation
As a creator, IP is at the heart of your services. Whether it’s short form or long form content – or merch resulting from your brand – and understanding how rights arise and what steps you should take to protect them is essential.
Key areas include:
- Copyright: this applies to your photographs, digital content, videos, podcasts, books, etc.
- Trade marks: this can enable you to protect your brand name, logos, slogans. Trade marks, once registered (if done so correctly!), can grant you exclusive rights to use the brand within your industry.
- Trade secrets: confidential recipes, formulas, or business methods that give you a competitive edge. Security and management of these is fundamental!
- Licensing: when working with brands or collaborators, be clear about who owns the content and how it can be used. Written agreements should define usage rights, duration and compensation – amongst other key terms.
- Third party contracts: having these contracts reviewed by an expert is a fundamental step to ensure you are not entering into anything disadvantageous or granting overly broad long-lasting rights.
- Talent management agreements: as above, it is key to have a fair and balanced talent management agreement in place that helps you to thrive and is not overly restrictive.
Commercialisation
As your brand grows, you will likely encounter opportunities to collaborate, endorse or co-create products and content. Formal agreements are essential to prevent misunderstandings and disputes.
Key considerations include:
- Revenue sources: how is revenue generated? How is it divided? What does the law say, and how does the contract need to be structured to avoid conflicts?
- Decision rights: who has the authority to make creative decisions? This is key when multiple people are involved or an agency is involved.
- IP ownership: what does the contract say about IP? You need to understand what you are signing up for – or away.
It is key to have a legal expert review commercial agreements to make sure you are aware of your obligations and duties.
Some top tips to help creators with brand protection:
- Review your IP.
- Register key trade marks and designs.
- Review and understand agreements before signing up to them.
- Educate yourself: stay informed about changes in IP law, social media and advertising regulations.
Fail to prepare, prepare to fail
Establishing a successful brand as a creator requires more than talent and dedication, it necessitates the strategic protection of your influence, ownership and revenue. Building the right legal frameworks, securing IP rights and understanding contracts are essential for business longevity and value. Rather than waiting for challenges to emerge, take proactive steps now to safeguard your business.
Please note: While this guide covers key legal essentials for creators, it does not constitute financial or tax advice. We strongly recommend consulting a qualified tax professional for guidance tailored to your individual circumstances.