What is a Story Pitch?

By Gamal Hennessy

This is a modified excerpt from a book I’m working on called The Business of Freelance Comic Book Publishing. It is designed to help you understand how to build a story pitch for a publisher. While this can’t be taken as legal or financial advice, it can help structure a story for characters you don’t own.

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Artists, colorists, and letterers can use finished comic book pages to show their ability to transform a script into a professional comic. But before any of that can be done, the script needs to be produced. Which scripts get produced and which stories get told is determined by the publisher.

Many publishers in the emerging, independent, and creator-owned sectors of the industry know what stories they want to tell. In many instances, they are writers who are trying to transform their scripts into comics. At the conglomerate level, publishers hold the rights to valuable IP, but look to freelance writers to create compelling stories for them. This is where you need to be able to present a story pitch to the potential client.

For our purposes, a pitch is a story proposal for an existing IP. There are various types of verbal pitches in the entertainment world, from elevator or convention pitches, and high concept pitches, but the story pitch is a more formal document a writer can use to secure work with a conglomerate publisher.

Dan DiDio, writer, editor, and publisher for both DC Comics and Frank Miller Presents, advocates the following structure for a story pitch:

• Logline: A one or two-sentence summary of the story that hooks the potential client and describes the central conflict of the story.

• Synopsis: A summary of the entire story, including the premise, the inciting incident, progressing complications, climax, and resolution of the story.

• Character Breakdown: A list of the protagonist and all the other supporting characters in their satellite relationship to the protagonist in the story.

• Situation and Location: A description of where and when the story takes place.

• Springboard: Other storylines that can follow from this story

• Art Samples: Capture the look and style of the story. This doesn’t need to be the actual art or original art. It merely needs to convey the proper mood.

Story pitches for established IP often have to balance the existing perception of the characters among readers, corporate plans for the character in other media, and the writer’s unique vision. For a historical perspective, some writers try to deal with these factors by reading up to fifty comics about the character before developing their pitch. Others, like DiDio, suggest that the writer only needs to be familiar with the character’s origin story and their last appearance and avoid being swamped by the “endless middle”. The corporate plans for a character are harder to prepare for because the information is often confidential, but networking and staying informed about film, TV, and game projects surrounding the character can mitigate this issue.

Have fun with your comic.

Gamal

If you’d like to learn more about freelance comic book publishing, subscribe to the Comics Connection newsletter for blog updates and information about the upcoming Kickstarter campaign.

If you have questions about the business or legal aspects of your comic book publishing and you'd like a free consultation, please contact me and we can set something up that fits in with your schedule.

PLEASE NOTE: THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF YOU HAVE AN ISSUE WITH YOUR COMIC PROPERTY, DISCUSS IT WITH A QUALIFIED CONTRACT ATTORNEY OR CONTACT C3 FOR A FREE CONSULTATION

What is the Legal Basis for Freelance Employment in Comics?

This is a modified excerpt from a book I’m working on called The Business of Freelance Comic Book Publishing. It attempts to define the underlying legal concepts for freelance professionals working in comics. While this can’t be taken as legal advice, it can help you understand your rights, revenue, and responsibilities when it comes to working in the industry.

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Intellectual property (or IP as it is often referred to) as “intangible creations of the human intellect” The components of comics (copyrights and trademarks) and the comics themselves constitute intellectual property, so working as a freelancer creates a legal situation that is different from driving an Uber.

In most situations, whoever creates IP owns the rights to that creation. The work-for-hire doctrine is an exception to that rule: “If a work is made for hire, an employer is considered the author even if an employee created the work. The employer can be a firm, an organization, or an individual and if the work is “prepared within the scope of their employment or a work is specially ordered or commissioned for use as a contribution to a collective work” then it can be considered work-for-hire.

It is important to note that as a freelancer, you have the legal ability to transfer some or all of the rights to your creations, but in many cases, comic book publishers will demand a total transfer of IP rights.

A transfer of IP rights must be in writing, often in a formal contract. If there is no contract granting a license or transferring IP rights to the publisher, then you may own or share ownership with that publisher, which can create some interesting scenarios if the comic becomes a film or a Netflix series one day.

Have fun with your comic.

Gamal

If you’d like to learn more about freelance comic book publishing, subscribe to the Comics Connection newsletter for blog updates and information about the upcoming Kickstarter campaign.

If you have questions about the business or legal aspects of your comic book publishing and you'd like a free consultation, please contact me and we can set something up that fits in with your schedule.

PLEASE NOTE: THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF YOU HAVE AN ISSUE WITH YOUR COMIC PROPERTY, DISCUSS IT WITH A QUALIFIED CONTRACT ATTORNEY OR CONTACT C3 FOR A FREE CONSULTATION

Character: A Book Review

I have recommended Robert McKee’s books to comic book creators for years, but his latest book might be his most relevant to this artform.

Character deconstructs the distinct works of art that populate stories. McKee analyzes the process of designing characters tapping into the psychological, philosophical, and social perspectives to create complex contradictions that readers identify with on both an intellectual and emotional level. McKee takes examples from every type of narrative art from The Odyssey to Breaking Bad to Waiting for Gadot to Mission: Impossible to A Fish Called Wanda to The Avengers to illustrate his points.

Characters are important to any story, but they might be most significant to modern comics because the characters can achieve so much life outside the narrative. Most of the Western world knows who Batman is, but not from reading the comics. The character has evolved and adapted to different stories and media over the decades in part because of his internal multilayered conflicts and the cast that surrounds him to highlight those facets of his experience. McKee’s book teaches you how to build that structure for your comics.

Our characters can exist and inspire beyond the confines of their story if they capture the imagination in the manner McKee lays out. If you want to create quality characters and comics on any level, McKee’s books are an important addition to your library.

Have fun with your comic.

Gamal

If you have questions about the business or legal aspects of your comic book publishing and you'd like a free consultation, please contact me and we can set something up that fits in with your schedule.

PLEASE NOTE: THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF YOU HAVE AN ISSUE WITH YOUR COMIC PROPERTY, DISCUSS IT WITH A QUALIFIED CONTRACT ATTORNEY OR CONTACT C3 FOR A FREE CONSULTATION

Eight Legal Considerations for Comic Book Crowdfunding

Most comic book creators and publishers are aware of the impact crowdfunding has made in the industry over the past few years. Few creators are aware of the legal issues they need to consider when planning a crowdfunding campaign. As a comic book attorney who has represented several crowdfunding creators, I’d like to offer some thoughts on the best practices for comic book crowdfunding.

Crowdfunding as Distribution

Despite the concept that Kickstarter rewards are not guaranteed, many comic creators treat crowdfunding as a contingent distribution method, meaning that the book will be published if the funding goal is achieved. While established publishers use the platform to offset costs and create marketing buzz, emerging and small press publishers are using platforms like Kickstarter to bypass the perceived gatekeepers of traditional publishing to bring their stories directly to their readers.

From a legal standpoint, this means crowdfunding needs to be treated as a variant of the independent comic book publishing process. There are some nuances unique to crowdfunded comics, but I’ve tried to list the major legal considerations below.

Legal Checklist for Comic Crowdfunding

1.      Ownership of the underlying intellectual property. The story, characters, and logo of the crowdfunded comic represent IP (copyrights & trademarks) that will probably be owned by some member or members of the crowdfunding team. Since that IP has the potential to be far more valuable than the initial crowdfunding campaign, whoever plans to claim ownership needs to protect their interests by completing the proper IP registrations, securing the rights to all the work done on the book with contracts, and strive to maintain ownership of the IP after the book is printed.

2.      Investment. Crowdfunding can generate substantial revenue for a comic book project, but there are business and creative upfront costs that someone needs to pay for before the campaign launches. Who pays that money, how they get their money back (recoupment), and what happens to that investment if the campaign fails all need to be understood by the entire crowdfunding team and established in a contract.

3.      Business formation: The creation of a legal structure can provide significant liability protection and tax benefits to anyone publishing comics, including crowdfunding creators. Consider starting a company to manage the financial and intellectual property assets of your campaign.

4.      Project Management. Crowdfunding involves a lot of work on both the business and creative sides. The role of everyone one involved, from managing the social media for the campaign, to producing the comic, to printing and fulfillment should have both their role and their compensation spelled out in a written contract.  

5.      Talent Acquisition: Running a campaign is easier if you don’t do everything yourself, but the responsibility of everyone involved, their relationship to the IP, and what they’re being paid needs to be clear, whether the campaign succeeds or not.  This can range from a collaboration agreement, a work for hire agreement, or a services agreement, but the contracts should be in place before the campaign goes live.

6.      Printing and fulfillment: If the campaign is successful, you’ll need to have a plan in place to deliver the rewards to your backers. Many services have emerged to offer this service if you don’t want to have a packing party, and each one should have its own terms and conditions available for review. It is always best to look these over on your own or with your attorney to ensure you’re getting what you’re paying for.

7.      Post campaign sales: A crowdfunding campaign can provide a great platform for an emerging creator to make a splash with their target market, but the end of the thirty-day campaign doesn’t have to be the end of your distribution efforts. Whether you sell comics on your website, through the direct market, or digital distribution it always pays to review those terms of service to ensure each platform is a good fit for your book.

8.      Revenue distribution: When the money arrives, you need to know where it is supposed to go. Outstanding payments to creatives and vendors need to be made and taxes may need to be paid. After the dust settles, any funds leftover (either from the campaign itself or the ongoing sales) can be distributed to the IP owners, collaborators, or anyone else who is entitled to a bonus for a successful campaign.

These eight steps do not offer a guarantee for a comic book crowdfunding campaign will go well, but they can put a comic creator in a better position to succeed, especially if the book reaches its funding goal.

Have fun with your comic.

Gamal

If you have questions about the business or legal aspects of your comic book publishing and you'd like a free consultation, please contact me and we can set something up that fits in with your schedule.

PLEASE NOTE: THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF YOU HAVE AN ISSUE WITH YOUR COMIC PROPERTY, DISCUSS IT WITH A QUALIFIED CONTRACT ATTORNEY OR CONTACT C3 FOR A FREE CONSULTATION

Initial Thoughts on NFTs from a Comic Book Attorney

I’ve had current and potential clients ask me about NFT’s over the past few weeks, and I’ve seen advocates on both sides of the issue present their perspectives. This isn’t meant to be a definitive statement on the technology and its impact on the industry. It certainly does not constitute business or legal advice. In the end, this can only be the beginning of an evolving perspective from someone who works with the legal issues surrounding comic book art, that can hopefully help increase understanding of this fluid topic.

What is an NFT?

The acronym NFT in this case stands for “non-fungible token”. While there is a more complex definition based on the underlying blockchain technology used to power it, the easiest way to think about NFT’s is as a unique digital file. According to The Verge “NFTs can really be anything digital (such as drawings, music, your brain downloaded and turned into an AI), but a lot of the current excitement is around using the tech to sell digital art.” On a certain level, NFT’s can be seen as an evolution of the selling of a singular physical art piece, like a commission you buy at a convention in artist’s alley or the single copy of Once Upon a Time in Shaolin that the Wu-Tang Clan sold to pharma-bro back in 2015.

What is the Value of a Digital File?

If an NFT is a digital file, and digital files by their nature can be instantly copied an unlimited number of times, what is the point of paying a lot of money for a digital file? The answer to that question can be traced back to the nature of collection in general and comic book collecting in particular.

Certain people have collected things that interested them from the time we could pick things up. Elite members of almost every civilization have collected works of art as a way to display their power and taste. There is an entire segment of the comic book industry based on the collection of comics and a separate market for original art from those comics.  

For example, in 2014 there was a sale for Superman #1 for 3.2 million dollars. The 2021 value of a similar book is currently listed at 23.6 million dollars. But why? If you don’t care about comics or you don’t like Superman, these numbers might seem ridiculous. What is the inherent, universal value of a Faberge egg, a Basquiat painting, or a rare comic?

There isn’t one. The value is subjective. As long as the seller can find a buyer willing to pay the cost, then the value exists for that transaction. So while paying millions of dollars for a digital file doesn’t make practical sense, it makes just as much sense as any other subjective artistic collectible. The only difference in the case of NFT’s is the difference between the object’s digital and physical existence.

What is the Impact on the Environment?

Like many types of blockchain technology, the NFT process harms the environment in ways that override any economic benefit it provides. While the specific harm to the planet is a matter for debate, it should be taken in the context of the wider environmental impact of the comic book industry for comparison.

Before the pandemic, if one artist in New Jersey wanted to sell one piece of original art at San Diego Comic-Con, she would have to take a car to the airport, get on a plane, take a car to the hotel, consume several meals for several days and then repeat the whole process to get back home and she might not ever sell her art. At the same time, hundreds of potential buyers of that single art piece would have to replicate the process on their own.

How much negative environmental impact does that create? I’m not an environmental expert. This scenario is not an apples-to-apples comparison, since both the buyer and the seller here might get more benefit from the trip than just the sale of one piece of art, but the sale of comic book art, and comic book fandom in general, isn’t inherently environmentally friendly.

What is the Impact on Comics Creators?

While any digital file can be sold as an NFT, not all digital files, or their creators, have the same stakes in the process. In my opinion, colorists, letterers, flatters, editors, and designers don’t have much to gain from NFTs. Writers might also find a hard time finding interest in their scripts or pitches without some extraordinary factors. At the same time, cartoonists and creator-owned comic creators who own their work outright appear to have more flexibility to pursue NFT’s than freelance creators. Artists and publishers have the most to lose or gain from the potential NFT market.

Artists, who have been able to supplement their income with the sale of original art in the past, lost some of that capacity as they moved from generating work in a digital rather than physical medium. Publishers, looking for additional sources of revenue from their intellectual property, see NFT’s as a market that could be bigger than the sales of the actual comics. Battle lines are being drawn based on who has ownership and control over these assets.

Who Owns the Comic NFT?

Ownership and control over NFT’s comes down to the contracts governing the underlying intellectual property and the relative leverage between the artists and publishers for any single comic.  

In a well-designed collaboration agreement or work for hire contract, there should be language concerning the ownership and disposition of original art. These clauses historically dealt with physical art, but they can be modified or interpreted to cover NFT’s.

Here’s an example of an original art clause. As you read it, keep in mind that the Owner is the publisher, the Talent is the artist, the Project is the finished comic, and the Services is the artwork.

The parties agree that Owner shall own all of the Services. Any original physical artwork created under this Agreement shall be owned by Talent. Talent may utilize up to four (4) pages of the Services in their professional portfolio or any marketing, advertising, or other display of the Services after the commercial release of the Project. Talent may not use any aspect of the Project to create additional materials not authorized and approved by Owner.

This paragraph attempts to achieve four goals. First, it designates that the publisher owns the pages produced by the artist. Second, it designates that the physical artwork (if there is any) is owned by the artist. Third, it allows the artist to use a portion of the pages to get more gigs after the comic is released (to avoid spoilers). Finally, it prohibits the artist from making and selling things without the approval of the publisher. The last sentence can be used to effectively prohibit the creation of an NFT, if the NFT is determined to be “additional materials.”

This is an example of an original art clause, but the contents of this clause can vary wildly based on the relative power of the people signing the contract. For example, an artist with enough leverage could have the word “physical” removed from the second sentence, giving her the potential to sell NFTs.

Leverage is defined as the power one side has over the other side in the pursuit of their interests. Companies like DC are using their leverage to shut down creator's attempts to generate revenue from NFTs that include DC characters. On the other end of the spectrum, publishers like AWA are coming out in favor of artists generating revenue from NFT’s. The difference in position could be based on a dissimilar corporate philosophy, or in the disparity in the market share and popularity between the companies characters, or a host of other reasons. In any event, artists who plan on selling NFTs will have to consider which publishers they work with and what they agree to in their contracts before they start selling.

What is the Future of Comic Book NFTs?

As I said in the beginning, this isn’t the last word on this issue. NFT’s, like page rates and other forms of compensation for comic creators, will continue to be a source of contention in the industry. There will continue to be business, legal and social fallout on both sides of the NFT issue depending on their relative position. The technology might become more efficient, more costly, or ultimately replaced by new technology. The market might stabilize or collapse. Publishers and artists could use the potential of NFTs as a negotiation point or as the basis for ongoing litigation. Whatever happens, creators, publishers, and consumers will have to reconcile with the continuing impact of digital technologies on the business of comics based on their goals, beliefs, and position in the industry.

Have fun with your comic

Gamal

If you have questions about the or legal aspects of your comic book publishing and you'd like a free consultation, please contact me and we can set something up that fits in with your schedule.

PLEASE NOTE: THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF YOU HAVE AN ISSUE WITH YOUR COMIC PROPERTY, DISCUSS IT WITH A QUALIFIED CONTRACT ATTORNEY OR CONTACT C3 FOR A FREE CONSULTATION

Dave Chappelle’s Advice to Comic Creators Part 1

To the best of my knowledge, Dave Chappelle doesn’t publish comics. He is one of the most celebrated comedians of his generation. He has created legendary stand-up performances, an iconic sketch comedy show, and he’s received some of the highest honors in his artform. If anyone has succeeded as a comic, it is Dave Chappelle.

But he wasn’t always at the top of his industry. At a certain point, he was a struggling comic trying to make it to the next level. Like many comic creators in the same situation, Chappelle got burned by his business partners.

This is the backdrop for the latest stand-up segment he uploaded to YouTube a few days ago. Dave Chappelle doesn’t make comics, but his experience offers four distinct lessons for anyone who wants to have a career in the comic book industry. This week, I’m going to cover those lessons, but I urge you to watch the special and share your thoughts on his experiences.

Lesson 1: Know what you are signing

When I started consulting clients about comic book contracts, I planned to explain the finer details of contract language, so artists and writers could make informed decisions about selling the rights to their work. Now that I've been doing this for fifteen years, I can see that I was wrong.

Some contracts that I've seen are prudent actions by publishers trying to protect their investment. But too many of these agreements are nothing more than a blatant attempt to hijack intellectual property from unsuspecting artists. This is the same issue Chappelle ran into when he signed his deal with Comedy Central.

The Double-Edged Sword

Signing a contract with a publisher can start an artist down the road to professional recognition and lucrative opportunities far beyond comics. It can also strip you of everything you have worked so hard to create. There are a lot of potential pitfalls in creator-owned contracts, including:

• Giving the publisher complete control of the property, not just the actual comics, but the underlying copyrights and trademarks.

• Giving the publisher control of the property in all media ever created, not just in digital and printed comics

• Agreeing to financial terms that are designed to keep you from ever being paid for your work

• Agreeing to give up your rights without being paid for them

• Agreeing to never get back the rights to your property

Of course, not every contract is written this way. Not every publisher is a demon attempting to steal your life's work. But the history of entertainment in general, and comics in particular, is littered with famous stories of iconic characters being given away by their creators for little or no money. But the answer isn't to avoid all contracts all the time. The key is to understand what you are signing and what you are and are not willing to give away.

Reality Check

It is obviously self-serving for me to make dire claims about the dangers of creator-owned contracts. The more you are concerned about this legal problem, the more likely it is you will become my client and pay my fee. It is also clear that many creators feel compelled to sign away their ideas to get their foot into whatever door they have found into the ultra-competitive comic book industry. Both of those concepts are true. I get it. Chappelle is living proof of that.

Here is my response to those facts; if you don't want to use me to review your contract, I respect that. By all means, use someone else with a background in contracts, IP, or entertainment law. Just don't do it yourself. This is not an insult to your intelligence or business savvy. It is the recognition of your specialization. You are an artist or a writer. You probably didn't waste a lot of time in law school learning about contracts (if you did, sorry about the loans). It is unrealistic for you to be expected to understand the implications of contract language. Many of the most successful businessmen have several lawyers explaining things to them when they need to make a major decision. Chappelle needed a good lawyer to steer him away from a bad contract. You should too.

And even if you do find yourself in a position where you “have to” sign a bad deal, do it with your eyes opened. Know what you are getting into, so you don't wake up one day without any claim or credit for what you worked so hard to create.

Tomorrow I’ll talk about the idea of leverage and how it evolved for Chappelle over time. Until then,

Have fun with your comic.

If you have questions about the business or legal aspects of your comic book publishing and you'd like a free consultation, please contact me and we can set something up that fits in with your schedule.

PLEASE NOTE: THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF YOU HAVE AN ISSUE WITH YOUR COMIC PROPERTY, DISCUSS IT WITH A QUALIFIED CONTRACT ATTORNEY OR CONTACT C3 FOR A FREE CONSULTATION

What are the Best Books to Give to the Comic Book Creator in Your Life?

If you’re trying to figure out the right gift for the comic creator in your life (even if that creator is you), please allow me to offer the following suggestions.

I referred to all of these titles in my book, The Business of Independent Comic Book Publishing, but each one deserves to be read on their own.  

Art:

Images are a fundamental aspect of the medium, so artist on every level can benefit from these classic guides:

• The Complete Guide to Self-Publishing Comics by Comfort Love and Adam Withers

• Creating Comics from Start to Finish by Buddy Scalera and Chris Eliopoulos

• The DC Guide to Creating Comics

• How to Draw Comics the Marvel Way by Stan Lee and John Buscema

• The Insider’s Guide to Creating Comics and Graphic Novels by Andy Schmidt

• Making Comics by Scott McCloud

I also want to give a special mention to the Strip Panel Naked YouTube Channel and their monthly magazine Panel X Panel.

Comic Book Industry History and Trends

If you don’t know where the industry has been, what’s happening now, or where it’s going it will be harder to succeed.

• Comic-Con and the Business of Pop Culture by Rob Salkowitz

• Demanding Respect by David Lopes

• Pros and Comic Cons by Hope Nicolson

Contract Negotiation

Contracts are fundamental to comics, whether you’re doing your own book or working for someone else.

• Getting Past No by William Ury

• Getting to Yes by William Ury

• The 48 Laws of Power by Robert Greene

Crowdfunding

Kickstarter is generating millions of dollars per year for comics, but only if you do it right

• Crowdstart by Ariel Hyatt

Distribution

Your books have to find their way into the hands of your readers somehow. 

• Comic Shop by Dan Gearino

• How to Self-Publish Comics by Josh Blaylock

• Your First 1,000 Copies by Tim Grahl

Economics

The comic book industry is a business. Understanding the numbers will give you a better understanding of the business.

• The Economics of Digital Comic Book Publishing by Tim Allen

• The Long Tail by Chris Anderson

Law

Several different aspects of law impact every comic, but these books focus on the most important element; intellectual property,

• Comic Book Start-Up 101 by Dirk Vanover

• The Pocket Guide for Comic Creators by Thomas Crowell

• The Law for Comic Book Creators by Joe Sergi

Marketing

Finding the right people to read your comic can be the difference between financial success and frustrating failure. 

• Book Yourself Solid by Michael Port

• Comic Book Marketing 101 by Mat Nastos

• Is $.99 the New Free? Steve Scott

• Laws of Human Nature by Robert Greene

• The Art of Seduction by Robert Greene

• This is Marketing by Seth Godin

Project Management

Publishing a comic involves a lot of moving parts. Making all those pieces fit together takes more skill than luck.

• Unnatural Talent by Jason Brubaker

• Write or Wrong by Dirk Manning

• Write, Publish, Repeat by Sean Platt

Writing

Comics are a narrative art form, so the story might be the most important element. While there are good books on the specific discipline of comic writing, there are also lessons to be learned from both outside the industry, including:

• Dialogue by Robert McKee

• Elements of Fiction Writing: Conflict and Suspense by James Scott Bell

• Making a Scene by Jordan Rosenfeld

• On Writing by Stephen King

• Story by Robert McKee

• Twenty Master Plots and How to Build Them by Ronald Tobais

• Words for Pictures by Brian Michael Bendis

• World-Building by Stephen Gillett and Ben Bova

• Writing for Comics by Alan Moore and Jacen Burrows

• Writing for Emotional Impact by Karl Ignlesias

• Writing Subtext: What Lies Beneath by Linda Seger

So which are your favorites? Are there any books I left out? Share your opinion in the comment and help grow the comic creator library.

Have fun with your comic.

Gamal

If you have questions about the business or legal aspects of your comic book publishing and you'd like a free consultation, please contact me and we can set something up that fits in with your schedule.

PLEASE NOTE: THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF YOU HAVE AN ISSUE WITH YOUR COMIC PROPERTY, DISCUSS IT WITH A QUALIFIED CONTRACT ATTORNEY OR CONTACT C3 FOR A FREE CONSULTATION

Should You Download a Random Contract for Your Comic?

This is a modified excerpt from a book I’m working on called The Business of Independent Comic Book Publishing. It attempts to address the issue of creating contracts for your business without being self-serving. While this can’t be taken as legal advice, as contract attorney and a comic book lawyer, I need to offer three particular warnings against taking the law into your own hands when it comes to your contracts.

• First, unless you’re a lawyer with experience in contracts, you probably don’t know the laws governing legal agreements. While contracts are often supposed to make a deal clear, the underlying legal principles can be confusing.  Without training and experience in contract law, your attempts to write your own contract can hurt you more than it can help.

• Second, you might not understand the meaning or the implications of the words in the contract. The language used in contracts is often circular, opaque and dense with words that no one uses anywhere else but in contracts. To complicate the issue, what normal words mean in a specific contract and what you think they mean are often two different things.  Without someone there to explain things to you, it is easy to sign something that will hurt you down the line.

This is not an attack on your intelligence. This is a question of training and experience. I’m a writer as well as an attorney, but I don't edit my books or design the covers. I hire professionals to do that. When I get on an airplane, I don't fly my own plane. I pay the airline to supply professionals. I could learn editing, cover design and piloting, but it saves time and money to bring in a professional.

If you don’t hire a lawyer and write the contract yourself, you might save a few hundred dollars up front, but if you miss something and you lose the rights to your property, you could be looking at a multi-million dollar loss down the road.

If you hire a lawyer before a deal is signed, it will cost you some of your investment. If you hire one after something goes wrong and you need to go to court, that price can rise exponentially. Court cases can take years and those billable hours pile up fast. For the long term success of your publishing, it is better to hire a professional early and avoid issues before they happen.

Finally, if you try to create your own contract, you might not know what kind of contract you need. Different contracts exist for different deals and scenarios of comic book publishing. If you use the wrong contract for your deals, you can place yourself in a poor position. For example:

• If you’re working with other creators on a book, you’ll need an artist collaboration agreement for each creator who will own a piece of the underlying intellectual property.

• If you’re hiring other freelance artists to work on your project, or if you’re working without credit on someone else’s material, you need a work-for-hire agreement.

• If you hire an accountant, lawyer, or editor, you’ll need a professional services contract with each one of them.

• If you use someone else’s intellectual property you’ll need a license agreement.

Comic creators can find almost anything for free on the internet, including contracts. But if you use the wrong contracts for your comic, the small amount you save now could cost you a lot more down the road.

Have fun with your comic.

Gamal

If you have questions about the business or legal aspects of your comic book publishing and you'd like a free consultation, please contact me and we can set something up that fits in with your schedule.

PLEASE NOTE: THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF YOU HAVE AN ISSUE WITH YOUR COMIC PROPERTY, DISCUSS IT WITH A QUALIFIED CONTRACT ATTORNEY OR CONTACT C3 FOR A FREE CONSULTATION

A Simple Guide to Getting Paid in Comic Book Collaboration Contracts

By Gamal Hennessy

This is a modified excerpt from a book I’m working on called Independent Comic Book Publishing. It’s designed to walk you through the basics how to pay the people who collaborate on your comic. While this can’t be used as legal advice, I hope you’ll find it helpful.

After ownership of the intellectual property, getting paid (or consideration as it’s referred to by contract attorneys) might be the most negotiated aspect of collaboration agreements. You need to pay each collaborator the right way, depending on the deal you’ve created with them. We’ve touched on both basic contract language (See A Simple Guide to Understanding Creative Contracts) and collaboration agreements (See A Simple Guide to Artist Collaboration Agreements). Now we need to take a closer look at the consideration in collaboration agreements.

Can Exposure Be a Form of Consideration?

Like many small business owners, independent comic book publishers try to keep costs low. One method that persists in this and many creative industries is offering “exposure” to creative talent instead of actual consideration.

While there will always be eager novice artists and writers willing to accept this professional abuse, but before we explore legitimate forms of consideration, I’m going to try and explain why you shouldn’t make “exposure” a part of your pitch to talent at any time.

“Exposure” is based upon a hypothetical, best case scenario. The publisher has an idea that is a “guaranteed” success. Anyone associated with this amazing book will become famous, because the book will be famous. Then, other publishers and creators will then seek out talent from this book to use in their own projects, and will pay substantial amounts for the privilege. In essence, talent gives up money now for a chance to “get their name out there” and achieve fame and fortune later.

This scenario falls apart upon casual inspection.

First, there are no guaranteed successful ideas in comics or any other form of entertainment. Second, there is no tangible assurance that the work done for exposure will ever lead to later paid work, even if the book is a hit. Third, in the 21st century, every artist, writer and creative profession market themselves using social media. Finally, the talent has financial obligations they are trying to fulfill with their creative work. There is no reason or incentive for comic book creators to spend their limited time and resources on the illusion of exposure.

Keep in mind, there is a related form of consideration called credit, which does have secondary value to comic book creators. Industry leaders like Jim Lee, Todd McFarlane, Frank Miller, and Mark Millar all leveraged their work for the Big Two into fame and success in their own projects. But the credit came in addition to the page rates and other forms of consideration, not as payment on its own.

Paying talent can be one of the biggest drains on your financial investment, but your professional reputation and the success of your book will suffer if you attempt to get people to work for free. Exposure by itself is not consideration. You need to offer something more.

What Forms of Consideration Are Used in Collaboration Agreements?

Because creators who sign a collaboration agreement own a portion of the underlying property, there are four major types of consideration they can get, based on the deal negotiated between the parties. 

1. Intellectual Property Ownership: Collaborators share in the copyrights and/or trademarks associated with the project. This could mean that they get a portion of the revenue generated by uses of the IP not directly related to the publishing, such as the film, TV and merchandise. This also means they can have authority over how the IP is developed and how it can and can’t be used.

   Please note that there is a mathematical limit to IP ownership. You can’t offer more than 100% of the property, so pay attention and don’t try and give away 130% of your book to various members of the team.

2. Credit: As I mentioned earlier, collaborators can get their name on the book and associated properties, as is customary in the industry (i.e. on the cover, in associated advertising and social media.) which can bolster their professional reputation over time.

3. Revenue sharing:  Collaborators can share in the success of the book by dividing profits between them. For example, if the writer and the artist collaborate on a book that generates $5,000 in sales, and they agreed to split the money evenly, each of them can walk away with $2,500, depending on how revenue is defined.  Again, you can’t offer more than 100% of the revenue, so be sure to check your math.

4. Upfront payment: Collaborators can negotiate terms where they get a portion of the investment prior to the collection of revenue in exchange for less initial money when the book starts generating sales. For example, if a writer took $2,000 as his overall page rate in our example above, he wouldn’t be able to collect any royalties until the book recovered his page rate from sales.

5. Copies of the final product: If you are going to distribute your project in digital or print format, one form of consideration is a specific number of free copies of the book. You can also consider giving talent the opportunity to buy additional copies at a discount so they can either give them away as promotional items or sell them on their own. If you decide to use this form of consideration, just be sure to factor this into your print runs. If you have a large team or you offer a large number of copies to each person, you could be cutting too deep into your revenue.

How Is Revenue Defined?

Collaborators who decide to share revenue need to be very specific about the definition of revenue if they want to avoid financial disputes (See Your Slice of the Pie). In general, revenue is defined as the income generated from the sale of goods or services. For your project, revenue can come from advertising, books sales or licensing of the IP. But all revenue is not created equal. Gross revenue is all of the money collected from the exploitation of the IP. Net revenue is gross revenue minus expenses related to the goods and services being provided.

Let’s go back to our earlier example to understand the difference between gross and net. If the collaborators made $5,000 in sales from their book and the revenue split is defined as 50% of the gross revenue, then each collaborator is entitled to $2,500. But, if the book cost them $4,000 to produce, print, and ship, then the net revenue is $1,000 ($5,000 - $4,000) and they each are entitled to $500. If the book cost $10,000 to produce, then there is a loss of $5,000 that the collaborators could deduct from their personal income depending on how the underlying business is set up. The majority of collaboration agreements use the net revenue definition, especially when the initial investment doesn’t cover production and distribution, but talk to your accountant to determine how the losses from a business apply to you.

Have fun with your comic.

Gamal

If you have questions about the business or legal aspects of your comic book publishing and you'd like a free consultation, please contact me and we can set something up that fits in with your schedule.

If you enjoyed this post, consider joining Comics Connection. Comics Connection gives creators a community to elevate their comic book careers. We offer access to business and creative resources you can’t find anywhere else. For a limited time, the first month of membership is free.

PLEASE NOTE: THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF YOU HAVE AN ISSUE WITH YOUR COMIC PROPERTY, DISCUSS IT WITH A QUALIFIED CONTRACT ATTORNEY OR CONTACT C3 FOR A FREE CONSULTATION

A Simple Guide to Work for Hire Agreements

By Gamal Hennessy

This is a modified excerpt from a book I’m working on called Independent Comic Book Publishing. It’s designed to walk you through the basics of work for hire agreements. The post is geared towards comic book creators, but the information is also applicable to freelance creatives and independent entertainers of all types.  While this can’t be used as legal advice, I hope you’ll find it helpful.

Freelance comic book creators are the lifeblood of the industry. While publishers are celebrated for the intellectual property they own, it’s the work for hire creators developing many of the characters, stories and milestone moments in comics. Creator owned books are rising in prominence, but many of them rely heavily on work for hire talent to turn their dreams into reality. A few independent publishers try to handle all aspects of the business and creative process of comic book publishing, but most do not have the skill or the time to go it alone (See You Need Two Teams to Publish a Comic). But for all their importance to the craft of comics, work for hire agreements don’t get the attention that matches their impact. When comics are made without a detailed work for hire contract, the publisher risks losing ownership of their intellectual property and freelance artists risk losing the revenue they are entitled to.

What Is the Work for Hire Doctrine?

One of the basic concepts in copyright law is the relationship between creation and ownership. In most situations, whoever creates an original work owns that work. The work for hire doctrine is an exception to that rule. “If a work is made for hire, an employer is considered the author even if an employee actually created the work. The employer can be a firm, an organization, or an individual.”

Under copyright law, a work for hire is created if it is “prepared by an employee within the scope of their employment or a work is specially ordered or commissioned for use” in a variety of situations. One of those situations is “as a contribution to a collective work”. Since comics are by definition a collective work, publishers regularly commission work for hire artists using work for hire agreements.

What Is the Benefit of a Work for Hire Agreement?

While there is plenty of hostility against work for hire agreements, there are benefits to both the publisher and the work for hire artist in the context of comic books. For the work for hire artist, there is a short-term financial gain. Many comics do not generate a profit, so artists relying on comic book sales to make a living might not be able to sustain themselves. Even if comic sales across the board were healthy enough for artists to survive, the profits for comics don’t materialize for months, sometimes years after the work is done and the book is published. Under a standard work for hire agreement, the artist is paid up front, regardless of the sales or profits of the published book.

For publishers, there is long-term profit potential. Published books are a source of revenue, but in the modern entertainment landscape, the intellectual property based on comics drives film, merchandise, television and video games (See Positioning Your Book for the Coming Content War). As an extreme example, the comic book industry as a whole generated two billion dollars in 2017. In 2018, Avengers: Infinity War generated a worldwide box office of more than two billion dollars, not counting merchandise or associated advertising.

Of course, even in the current age of comic entertainment, only a select few properties crossover into mainstream media. And almost none of the books that do find their way to various screens and shelves reach the heights of the current MCU, but copyright ownership gives publishers the potential for success. It is an investment with substantial risk that the work for hire artists don’t lose or profit from either way, depending on the agreement.

What is a Work for Hire Agreement?

A work for hire agreement defines the rights and responsibilities between an owner who commissions a work and the artist who creates that work. A work for hire agreement is different from an artist collaboration agreement (where two or more parties share in the ownership of intellectual property See A Simple Guide to the Artist Collaboration Agreement), or a license agreement (where one party gives another party the right to use some aspect of the intellectual property in exchange for payment).

Keep in mind that anyone working on the comic book who will not share in ownership of the intellectual property should sign a work for hire agreement. This includes freelance professionals on the business side of publishing like marketers or web designers who are not directly creating the comic book.

While a work for hire agreement will share some of the same foundation and housekeeping terms found in other comic book contracts (See my post on A Simple Guide to Creative Contracts), there are several basic and business terms unique to this type of agreement.

What are the Main Elements of a Work for Hire Agreement?

A well-drafted work for hire agreement will address the following issues:

1)    The Owner of the Work

2)    The Work for Hire Artist for the Work: Each artist performing work for hire services needs to sign a separate agreement with the Owner.

3)    The Work explains what the Owner wants the Artist to do. This should be described in as much detail as possible, but at a minimum it should include.

a.    The working title

b.    A description of what the final product will be, whether it’s a web comic, single print issue, graphic novel or ongoing series

c.    The Services the Work for Hire Artist is providing.

4)    The Delivery Schedule: of when Artist will deliver the Services.

5)    The Compensation: including page rates, hourly rates, royalties or any combination of the three. Compensation terms should also include:

a.    The timing of payments

b.    Credit in the final product

c.    Ownership of the original artwork (if applicable)

d.    Use of the Services in their professional portfolio

6)    The Advance Recoupment: Any and all payments made to any party before revenue is generated and then deducted from the royalties when revenue is generated. For example, the artist might get a page rate for their work on the book before publication, but that money can get recouped by the Owner when the book goes on sale.

7)    Missed Deadlines: any penalties to the Artist for missing the Delivery Schedule.

8)    The Withdrawal: any penalties if the Artist is unwilling or unable to complete the Work

Drafting, negotiating, and signing the contracts for your creative project might take some time and cost you some money, but if you sign the right contracts up front, you'll save money in the long-term and put both you and your book in a better position to succeed.

If you’re a comic book creator or freelance artist who has had artist collaboration agreement issues in the past, feel free to share them in the comments below and tell us how you dealt with the problem.

Have fun with your comic.

Gamal

If you have questions about the business or legal aspects of your comic book publishing and you'd like a free consultation, please contact me and we can set something up that fits in with your schedule.

If you enjoyed this post, consider joining Comics Connection. Comics Connection gives creators a community to elevate their comic book careers. We offer access to business and creative resources you can’t find anywhere else. For a limited time, the first month of membership is free.

PLEASE NOTE: THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF YOU HAVE AN ISSUE WITH YOUR COMIC PROPERTY, DISCUSS IT WITH A QUALIFIED CONTRACT ATTORNEY OR CONTACT C3 FOR A FREE CONSULTATION.