The Front Row View (entertainment insurance blog)

Self-distribution models for film productions: What are the risks?

Written by Dave Stern | Feb 29, 2024 2:21:51 PM

Self-distribution models (e.g., YouTube) for film productions: Increased or decreased risk and insurance cost?


Dave Stern
: It’s a good question because it really comes down to: the risk is tied to the exposure. If five people see a movie, the risk is low; if 10 million people see a movie, the risk is high. Something could be on YouTube but only have 500 views and perhaps 500 people have seen it; the risk is fairly low. Regardless of the method of distribution, it’s really about the volume of people who have seen it.

If someone has been wronged or their intellectual property (IP) rights have been used in the production without their permission, they will only contemplate a claim if they know about it, so it’s a question of visibility and exposure.

With respect to an online platform that is easy to self-upload, self-distribute, such as YouTube, there are other remedies one could take that would not be available otherwise. E.g., if a third party has their IP infringed – a piece of their artwork was shown in a feature film without their consent – if they see this on YouTube, they can simply report it. Individuals have reporting rights for IP or copyright infringement that would ultimately result (in most cases) in the takedown of the content. So, the feature film might actually be taken down because somebody clicked a few buttons and completed a small form online.

If a film is a Hollywood blockbuster that is exploited theatrically, if someone sees it and they’re upset by the same infringement, the remedies that they can pursue are not exactly limited but more complex and costly for them to do so. That would be the major difference – [with self-distribution, such as YouTube] there is that added layer of ease for individuals who have been infringed upon to file a report and get content taken down, which could significantly impact the future prospects of the film.

Dave Stern is an entertainment lawyer and partner at Blaney McMurtry LLP

 

Are you a producer in Canada or the US? Get a quote for producer’s E&O insurance here.

 

Related:

About: Based in the heart of Toronto’s financial district, Blaney McMurtry LLP is one of Canada's premier law firms. https://www.blaney.com/

About: Front Row Insurance Brokers Inc. is an independent insurance broker that specializes in the entertainment industry – specifically, the film industry. Front Row works hard to provide insurance protection for a very low cost. Should a claim occur, Front Row works diligently with clients and insurers to expedite the payment.

Disclaimer: Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. Consult the actual policy or your broker for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you. Your eligibility for particular products and services is subject to the final determination of underwriting qualifications and acceptance by the insurance underwriting company providing such products or services. This website does not make any representations that coverage does or does not exist for any particular claim or loss, or type of claim or loss, under any policy. Whether coverage exists or does not exist for any particular claim or loss under any policy depends on the facts and circumstances involved in the claim or loss and all applicable policy wording.