Ever wondered how the biggest fights in entertainment get settled?
The entertainment industry is made for legal drama. Multi-billion dollar streaming contracts. Massive venue construction projects. Intellectual property ownership fights. Legal disputes are everywhere, and they’re only increasing.
Entertainment contracts are being challenged like never before. Entertainment intellectual property is being fought over more every single year. And more and more entertainment construction projects are getting tied up in million-dollar lawsuits.
Here’s the issue:
Nobody really knows how those fights get resolved. They don’t always go to court. In fact, most legal disputes are settled behind closed doors; through confidentiality clauses, private meetings, and agreements that the general public will never hear about.
The good news? There are repeatable processes that bring resolution. And knowing how they work can save you huge amounts of time, money, and headaches.
Why Entertainment Law Disputes Are Growing Like Crazy
It’s a perfect storm.
Streaming platforms are fighting over content rights. Talent is demanding contract renegotiations at record studios. And gigantic stadium, arena, and entertainment venue construction projects are popping up everywhere. With construction comes countless building and construction law disputes across the industry.
Here’s the crazy part…
Let’s say $1B is being invested into building a state of the art entertainment venue. Construction requires hundreds of different contracts, permits, and regulations. Building and construction law handle everything from contracts with the building company to safety regulations to delays in construction. If a contractor blows the budget by $10M because of defective work, you can bet they’ll be sued.
Having a trusted litigation lawyer on your side is essential. Whether it’s a concert arena with defective construction or a breach of contract between studios… experienced counsel is your best bet for a favorable outcome.
Entertainment disputes are rising across the board. The World Intellectual Property Organization (WIPO) handled 858 IP disputes in 2024, a 25% increase compared to last year. And the entertainment industry along with video games was responsible for the majority of those disputes.
That’s huge.
The 4 Primary Ways Entertainment Law Disputes Get Resolved
Alright, so how do these entertainment disputes actually get resolved? There are four main routes that most legal disputes in entertainment follow…
Mediation
Arguably the least aggressive approach. Both parties meet with a mediator who works with them to try and negotiate a deal. No one can be forced to agree to anything and a resolution is only reached when everyone gets on board.
Why is this such an effective form of dispute resolution for entertainment?
Well for starters; it’s quick, cheap, and confidential. Entertainment companies don’t want every minor dispute dragging their name through the mud. Private settlements are extremely common. And mediation is most effective for contract disputes, paying contractors the right amount, and license disagreements.
Most cases are settled within weeks, not months or years. Additionally; mediation keeps business relationships intact. They’re why most companies operate in the first place.
Arbitration
Next up is arbitration. Similar to mediation except there is an arbitrator and his decision is final and binding.
Private dispute resolution provider JAMS just announced they had 21,390 new cases in 2024; a 10% increase from the previous year. Entertainment cases led the charge.
Here’s why entertainment companies flock to arbitration:
- Everything is kept confidential. No court records can be obtained by the public.
- It’s quick. Compared to court cases at least.
- You can pick who decides your case. Industry experts are the best arbitrators.
Litigation
When all else fails… Litigation.
Welcome to the public courts. Litigation is the nuclear option. It costs millions and takes years, but when someone steals your intellectual property or a building contractor slaps on a $50M bill for defective work…you fight back.
Building and construction law issues are common when it comes to entertainment venues. When the construction of a stadium or arena is plagued with defects and billions of dollars are on the line; litigation is usually the answer.
Negotiation & Settlement
This happens before anything else. Most companies will always choose the cheapest and easiest path to resolution.
Litigation. Seriously though. If you and your business partner can’t agree on who gets the TV during a break up…you’re going to have issues resolving actual legal disputes down the road.
Entertainment Law Disputes: What Kinds Are There?
Contract. IP. Construction. Labour.
They all happen. Here’s what you can expect:
Contract disputes are by far the most common. Can’t agree on who gets the royalties? Contracts. Not sure who owns the equipment? Contracts. Someone isn’t paying a contractor what they believed they were promised? You guessed it; contracts.
Intellectual property disputes are a close second and quickly growing. AI is writing movies and songs now. More copyright infringement battles between tech companies and entertainers are popping up every year.
Building and construction law comes into play when you literally build something. The entertainment industry is full of venues. Anything from stadiums to outdoor event spaces require building. When there are delays, defects, or budget overruns; legal disputes happen.
Employment disputes. Remember the WGA and SAG-AFTRA strikes of 2023? When everybody who works in entertainment let Hollywood know they were mad; those were labour disputes.
Why Are Parties Turning To Arbitration?
Here’s a fun statistic:
The number of copyright and digital content disputes filed in arbitration with WIPO has grown by 717% over the last five years.
Crazy right? Here’s why…
Privacy. Celebrities and big studios don’t want every detail about their private deal shared online for the world to see. Entertainment arbitration cases happen fast. Depending on the situation you could have your dispute resolved in matter of months. Courts take years. Lastly, you get to pick who decides your case. Meaning you can pick arbitrators familiar with entertainment law, construction law, and intellectual property.
Some of the biggest arbitrations in entertainment history have been between A-list celebrities and billion-dollar studios. But those are the ones you’ll never hear about.
Conclusion
Legal disputes don’t need to end in court. The majority of entertainment disputes are settled using some form of private resolution.
However, just because you can avoid court doesn’t always mean you should. If you’re getting sued, consult a lawyer immediately and learn about your options. The sooner you know how to tackle a legal dispute, the better off you’ll be.
