The Think Media Podcast Episode 361: The Biggest Legal Mistake Creators Make!

Release Date: November 12, 2024

In Episode 361 of The Think Media Podcast, host Sean Cannell delves into the critical legal aspects that YouTube creators must navigate to safeguard their channels, businesses, and personal brands. Featuring guest Tyler Chow, a seasoned attorney specializing in creators' legal matters, the episode unpacks common legal pitfalls and provides actionable insights to help content creators thrive without falling into costly mistakes.

1. Introduction & Guest Overview

Sean Cannell opens the episode by emphasizing the importance of understanding the legal landscape of YouTube and online content creation. He introduces Tyler Chow, the Creator's Attorney, highlighting her mission to protect creators and elevate their businesses to seven-figure enterprises.

"I'm the creator's attorney. My life's mission is to protect creators and bring them to seven-figure businesses."
— Tyler Chow [01:14]

2. Essential Legal Agreements for YouTubers

Tyler Chow outlines the foundational legal structures creators should establish to protect their ventures:

• Limited Liability Company (LLC): Creating an LLC can shield personal assets in the event of litigation.

  "If you don't have an LLC up that veils that protects you, then your personal assets might get touched."
  — Tyler Chow [07:40]

• Employment Agreements: Contracts are crucial if hiring staff such as editors, producers, or scriptwriters.

• Non-Disclosure Agreements (NDAs): Protects sensitive information when partnering or sharing ideas.

• Insurance: General liability and defamation insurance can safeguard against unforeseen legal challenges.

Chow emphasizes the relatively low cost of setting up an LLC—often a few hundred dollars—and the long-term protection it offers against lawsuits.

3. Intellectual Property Rights and Trademarks

The discussion shifts to intellectual property (IP), where Chow clarifies:

• Automatic Copyright: Uploading content to platforms like YouTube grants automatic copyright protection.

  "Every time we put a video up on YouTube, it is automatically copyrighted."
  — Tyler Chow [09:45]

• Trademarks: Protecting names, mottos, and unique phrases is essential to prevent others from capitalizing on a creator’s brand.

Chow shares a notable anecdote about a creator whose viral saying was trademarked by a third party, underscoring the importance of proactive IP protection.

4. Navigating Partnerships and Contracts

One of the significant legal challenges creators face is managing partnerships:

• Partnership Agreements: Establish clear terms from the outset, including ownership percentages and exit strategies.

• Avoiding Predatory Loans: Some companies offer creators loans with onerous terms, threatening channel control if content production wanes.

  "These companies are giving loans with really loan shark-like terms... they're threatening to take their channels away."
  — Tyler Chow [14:12]

Chow recounts a case where she successfully defended a client against a predatory loan agreement, preventing financial ruin.

5. Influencer Marketing, FTC Guidelines, and Disclosures

The episode delves into the intricacies of influencer marketing and regulatory compliance:

• FTC Disclosure Requirements: Creators must clearly and conspicuously disclose paid partnerships and material connections to brands.

  "Disclose so extensively... as many ways as you can disclose that you're being paid for this sponsorship."
  — Tyler Chow [35:40]

• Landmark Cases: The episode references significant FTC actions, such as the 2019 COPPA violation by YouTube and the 2022 fine against the Kardashians for undisclosed paid partnerships.

Chow advises creators to over-disclose sponsorships to maintain transparency and trust with their audience.

6. Equity Deals vs. Traditional Brand Deals

Tyler Chow introduces the concept of equity deals as a strategic alternative to traditional brand partnerships:

• Equity Partnerships: Instead of accepting one-time payments, creators can negotiate for equity in the brands they endorse, potentially reaping significant long-term benefits.

  "If you're a high-level creator who is doing five to six-figure brand deals, you should be asking for equity."
  — Tyler Chow [19:16]

• Case Studies: Examples include creators like Alex Earl and Joe Rogan, who secured equity in burgeoning brands, leading to substantial financial gains.

Chow encourages creators of all sizes to consider their unique value propositions when negotiating deals, regardless of their current subscriber count.

7. Handling Payment Issues and Non-Payment by Brands

Payment reliability is a common concern among creators engaging in brand deals:

• Non-Payment Scenarios: Brands or agencies may fail to pay promptly or in full, leaving creators financially strained.

  "There's a lot of things that need to change and procedures need to be there... including handling non-payment."
  — Tyler Chow [29:30]

• Legal Recourse: Chow outlines that even small-scale non-payments can be addressed cost-effectively through demand letters, rather than creators bearing the burden alone.

She emphasizes the importance of having legal support to ensure brands honor their financial commitments.

8. Crypto Endorsements and Financial Safety for Creators

The rise of cryptocurrency endorsements presents unique challenges:

• Risks of Crypto Endorsements: Many crypto projects are fraudulent or unstable, posing risks to both creators and their audiences.

  "Crypto endorsements are really tricky because you always have a chance that one of the crypto companies that you're endorsing is going to scam its buyers."
  — Tyler Chow [44:55]

• Due Diligence: Creators should thoroughly research and vet any crypto-related endorsements and consider the long-term implications of such partnerships.

Chow advises caution and suggests creators seek input from knowledgeable peers before entering crypto deals.

9. Strategic Mindset for Creators in 2025

As the creator economy continues to expand, Chow shares her optimistic outlook:

• Growth Opportunities: With increasing interest from major brands and private equity in the creator space, creators are in a prime position to capitalize on burgeoning opportunities.

  "The future is bright for the creator economy... be excited, realize that you're in the right place."
  — Tyler Chow [51:30]

• Diversification: Encourages creators to explore multiple revenue streams, such as launching products or engaging in various forms of content creation to build a resilient business model.

Chow underscores the importance of leveraging platforms like Think Media for ongoing education and support.

10. Guest Resources and Community Engagement

Tyler Chow concludes by promoting her resources and upcoming community initiatives:

• YouTube Channel: Tyler Chow, the Creator's Attorney - Regular legal advice and insights for creators.

• LinkedIn Activity: Active presence with frequent posts and engagement.

• Upcoming Community: Launching a community on Mighty Networks, offering live Q&A sessions, legal advice, and collaborative opportunities for creators.

"I'm starting a community... it's going to feature myself live probably twice a month... capturing your email list is so important."
— Tyler Chow [48:44]

Chow also mentions her involvement in helping creators launch diverse products, further emphasizing the multifaceted support she provides.

Conclusion

Episode 361 of The Think Media Podcast serves as a comprehensive guide for YouTube creators aiming to navigate the complex legal landscape of online content creation. With Tyler Chow’s expertise, creators gain valuable knowledge on establishing protective legal structures, negotiating fair deals, complying with regulatory guidelines, and strategically planning for long-term success. As the creator economy burgeons, understanding these legal nuances becomes increasingly vital for sustaining and scaling a profitable and resilient online presence.

Key Takeaways:

• Establish an LLC to protect personal assets.
• Use contracts and NDAs when hiring or partnering.
• Protect intellectual property through automatic copyrights and trademarks.
• Negotiate equity deals for long-term benefits.
• Ensure clear FTC-compliant disclosures in all sponsored content.
• Be cautious with crypto endorsements and perform thorough due diligence.
• Seek legal counsel to handle payment disputes and safeguard your business.

For more detailed resources and templates mentioned in the episode, listen to the full podcast and refer to the show notes provided by Think Media.