The Biggest Lie in Entertainment Negotiation

The Biggest Lie in Entertainment Negotiation

From my early days as an entertainment lawyer, I remember coming across a clause I didn’t fully understand. When I asked for clarity, the response I got was the popular statement creatives and even lawyers cling to:

“It’s industry standard.”

That phrase is laughable 🤣.

Why?

Because “industry standard” is often used as a lazy shortcut to silence questions. It sounds authoritative, but it is nothing more than a way of saying: “We don’t have a legal basis, we’re just doing what everyone else does.”

The danger is that popularity is mistaken for legality. A practice may be widespread, but unless it is backed by statute or case law, it has no binding force. At best, it is persuasive, it can guide you if you choose to follow suit, but it cannot compel you. And persuasion is fragile, the moment it collides with the law, it collapses.

This is why “industry standard” is laughable. It gives a false sense of security. It makes creatives believe they are protected when in fact they are exposed.

It is the equivalent of building a house on sand, common, convenient, but incapable of standing when tested.

In NCC v. MCSN (2017), the Court of Appeal reinforced that statutory provisions take precedence, and industry practice cannot displace them.

That says it all.

Popular practice, no matter how widespread, has no binding force unless backed by law.

Once in a negotiation, a producer wanted royalties from the master (sound recording). Our position was simple: royalties from masters belong to the owners and performers of the sound recording.

The Copyright Act 2022 makes this clear.

Section 15(1) provides that only the performer and the owner of copyright in a sound recording are entitled to remuneration.

Section 63(3) defines who a performer is, actors, singers, musicians, dancers.

Unless a producer actually performs in the recording, he is not a performer under the law.

The counter‑argument we heard was, “It’s industry practice to give producers royalties from the master.” I was like huh?

That is exactly the problem. Industry practice may be popular, but without legal footing, it cannot override the law.

Here are 4 Questions to Challenge “Industry Standard” statement. 📌What is the legal basis? 📌Is it backed by statute or case law? 📌If challenged in court, would it stand? 📌Does it align with rights recognized under law?

The next time someone tells you “it’s industry standard,” pause and ask from any of the 4 questions above and see how they react.

Because in entertainment negotiation, the only standard that matters is the one written in the statute or upheld in court.

See you in the next one.