April 4, 2007
Dear “Content Providers”:
I have warned, screamed, yelled, written, lectured, advised and
cajoled creatives to make sure that the word "agent" was conspicuous in
any Stock "Agency" or representative agreement to which they were a
party. I refuse to look at proposed stock agency agreements or take
legal fees from any creative who has sought to "partner" with an agency
which refuses to permit the word "agent" to be used in such contracts.
An agent has responsibilities by law to offer images in a
manner serving the best interests of its principal - here artists,
illustrators and photographers. A mere "content distributor" can
market images (or not) with little or no accountability. So assume
that a stock agency has, images subject to royalty payments as well as
other comparable images which it owns either outright or on which it
pays a royalties of far less than 50% to the creator. Does the agency
push the “50/50” image which if licensed, generates 50% less income
than the agency’s own wholly owned image? Oh what a dilemma the agency
salesperson faces? What to do, what to do. What would you do? Need
more time to think? So the "50/50 split" creator is at a
distinct competitive disadvantage and is utterly unaware of any
negotiations engaged in by his/her agent. During this de facto secret
process, the creative's competitive (or superior images) are
effectively OFF THE MARKET! Certain agencies continue to co-opt
competitive images by buying, failing to return or losing them and thus
a large body of competitive work fades away into the ether.
Note the acquisitions of smaller agencies and archives by large
agencies such as Corbis. Note the disappearance of photo credits
bearing photographer’s names and the increasing number of photos
credited to agency or archive ONLY. If you ask some civilians to name
today’s most popular photographers many will answer, “Mr. Getty and Mr.
Corbis”. By the bye, ever wonder how this guy Corbis managed to shoot
more pictures than all of the photographers you know or ever heard of -
combined? As you must know, Mr. Corbis is the only photographer in
history who was imbedded with American troops in each and every battle,
in each and every war, from Gettysburg to Bagdad and has the photo
credits and copyrights to prove it. But I digress.
Images
wholly owned by an agency yield 100 cents of every licensing dollar to
the agency. A “50/50, 60/40" creator gets nothing and has
effectively agreed to let the agency hasten his/her own demise by
pushing him/her out of the market. Is it any wonder that media
companies and stock agencies like to call artists and photographers
"lemmings"?
So when is an "agency" not an "agency"? Why,
when it says so! Notwithstanding the fact that some stock agencies
hold themselves out and promote themselves as "agencies" or "agents"
they nevertheless seek to avoid the legal status of this legal
relationship at when appropriate. Like when a creator alleges that
his/her agency has done him/her wrong. The agency's legal position
instantly morphs to, "We are only a content distributor. We have no
special obligations to our content providers other than to try to sell
(sic) their work".
Confused? You should be. In this
world of corporate speak and naive creatives, the agencies continue to
make every effort to eliminate the word from your intellectual property
vocabulary. They require that you ignore all of the time tested legal
and plain English definitions of the word. They know that most
creatives sleep right through this part of the mugging.
At law, an agent is entrusted and empowered to represent, stand in the
shoes of, act, etc. for another person or business. The agent is
obligated by law to act in the best interests of his/her principal. An
agent has a responsibility imposed upon him/her by law to do those
things which in the exercise of reasonable or sound business judgment
to benefit the principal - the person who empowered and authorized the
agent. The legal foundation of the principal/ agency relationship is
TRUST. Trust carries with it responsibilities and obligations imposed
by law.
Photographers, illustrators and artists are the
principals who appoint and entrust "reps", agencies and agents to
procure business in exchange for money - commissions. You guys are the
bosses. You have the power, they are supposed to work for you, not the other way around.
An agent
can not act or permit actions which serve its self interest to the
detriment of the creative. Every state has laws which make agents who
self deal and act without proper regard to the best interests of their
principals, subject to liability. In short, the actions of agents can
be kept in check by the power of law and the assistance of the courts.
A mere independent sales representative or distributor rarely is
burdened by such legally imposed responsibilities and obligations.
He/she can sell one product over another at his/her whim. An
independent distributor selling products rarely has any obligation or
allegiance to one brand over another. He/she may favor one brand over
another. A mere salesperson can sell (or not) anything he/she believes
to be in his/her own economic self interest only. It logically follows
therefore, that no one cares, especially not the courts, what products
a distributor elects to sell.
Recently a well known stock
agency, whose name is known to you all, has denied by its lawyers, in
writing (twice), that even though:
- its own contract heading identifies itself as the "agent";
- it promotes and advertises itself to its clients and prospective
"content contributors" as an "agency” and “agent for
content"; - prominently uses the word "agent" on its website...
it
is NOT an "agent" for any of its contributors, content providers or
“partners”. (Note that if you are not receiving a share of the agency’s
profits nor are responsible for a share of its losses, you are NOT -
despite what the agency may fondly call you - a “partner”, pardner.
Yes, it sounds illogical. Yes, it is counter intuitive. Yes, it is
utterly bereft of a semblance of merit. Yes, the issue will now have to
be litigated at great expense. And oh yes, the agency has more money
than God and lots of attorneys to litigate this.
The
creatives now must dig down deep into pockets made bare by the very
conduct of their financially fat agency in order to have a judge
ultimately decide whether their agency is in fact, an agency. I see
much gnashing of teeth, many lawyers buying large gemstones and
countless trees being felled so that thousands of pages of legal briefs
can be created.
All of this, YES ALL OF THIS, could
have been avoided had the contract simply stated that, "The agency has
all of the obligations and is deemed an "agent" of the creative
pursuant to the laws of the State of ______________". One sentence.
Just one damn sentence. Had it been included, the creatives would be
proud owners of some obscenely priced luxury vehicles and more
importantly, their new attorney could be blissfully planning a very
early retirement. Gee do I sound cranky? How unprofessional, so sorry.
So in this world where creatives don't consult lawyers and where
desperation motivates business, black has become white and visa is now
versa. Continued acceptance of the vocabulary of your enemies
inexorably moves creatives ever closer to economic extinction.
If, as and when litigation is filed we will provide the name of the
case which will of course, reveal the name of this week’s
agency/offender.
Edward C. Greenberg, PC 100 Park Ave. 33rd Floor
New York, NY 10017 |