Why Comic Creators Need Lawyers

Technology has given independent artists the tools and freedom to control more of their work. It is easier than ever to create, publish and distribute your stories without a deal from the big boys. This evolution in the industry gives you more chances to get your work in front of bigger players, and gives you the potential to make deals that were few and far between a few years ago.

But this DIY spirit can be dangerous if taken too far. There is a point where it is helpful, even preferable, to do things on your own. When it comes to legal agreements involving your intellectual property, you need the support of a professional.

Disclaimer
You’ve probably already came to the conclusion that I'm only writing this post to get more work. After all, I am an attorney who represents comic creators. (See An Introduction to Creative Contract Consulting). If I scare you into thinking that you'll be cast off into the Negative Zone if you don't get a lawyer, then there's a good chance you'll hire me. To a certain extent, that's true. But there are three points to keep in mind before you dismiss me out of hand:

• The history of comics is filled with creators who lost all the rights to their characters and spent years in court trying to get those rights back. (See Newsarama: The Ten Major Creator Disputes in Comic Book History)
• Based on the survey I did over the summer (See Results of the Great Independent Comic Survey) 25% of current comic creators do not own (or they don’t know who owns) substantial rights to their books.
• Even if you decided to hire a lawyer, you may decide to not hire me

So as self-serving as this post might be, that doesn't mean it doesn't make a point that can help you.

Division of Labor
The reason you need a lawyer to help protect your rights is because legal contracts and legal principles are designed to be confusing.  The language used in contracts is circular, opaque and dense. What the words mean and what you think they mean are often two different things. The implications of certain words are often unclear even to the person who wrote the contract. 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.  Many of my clients are a lot smarter than me. This is a question of training and experience. I’m a writer as well as an attorney (See Smooth Operator). I don't edit my novels and I don't design the covers. I hire professionals to do that. (See Judging a Book by its Cover) As an airline passenger, 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.

Hiring a lawyer is the same. We already wasted years of our lives and hundreds of thousands of dollars learning to decipher contracts. Why not take advantage of our poor decisions?

A Word about Costs
Lawyers are not cheap. We have to pay off exorbitant loans and many of us have expensive tastes. We normally charge by the hour, so the best way to use a lawyer is to hire one for as short a period of time as possible. If you hire them before a deal gets signed, it might cost you a few hundred bucks. If you hire one after something goes wrong and you need to go to court, that number can rise exponentially. Court cases can take years and those billable hours pile up fast. It's better to bring us in on the front end and nip the issue in the bud.

Somebody, but not just Anybody
I understand if you don't want to hire me. You might not like my style. I might not be attractive enough to be your lawyer. That's fine. I've been rejected before. All I ask is that if you're faced with a contract that involves you or your work, get a lawyer to review it before you sign it. And not just any lawyer. A criminal defense attorney might not understand the entertainment or comics market well enough to help you. Check the background of your prospective attorney, talk to your colleagues about who they use. Once you find the right one and you determine they have an acceptable level of attractiveness, retain them and put them to work. That will give you the time and the peace of mind to go back to making comics.

Have fun.
Gamal

Recommended Panels for New York Comic Con 2013

Events like NYCC are beneficial in many ways. They allow professionals a chance to network, connect with their fans, sell their work and be inspired by the work of others.

Cons are also a good source of information when it comes to managing and understanding your career. If you take advantage of the professional panels at NYCC, you have a chance to learn from people who can help you avoid mistakes and enhance your career.

This is a list of the most interesting panels I've seen on the schedule at this point. I can't vouch for the speakers or the quality of the presentations, but these are the places I plan to spend my time on Thursday afternoon. My own willingness to attend these meetings and not stand on line to play Arkham Origins has to count for some type of endorsement.

Thursday October 10th
3:15: Comixology Submit: The Future of Self Publishing
4:15: Protect It and Publish It: Meeting and Negotiating with Publishers
5:00: You've Broken into Comics, Now What?

I'm also giving these two panels honorable mentions. I won't be able to attend because of schedule conflicts, but they do sound useful.

Thursday, October 10th
4:15: Protect It and Publish It: Creating and Protecting Your Property

Friday, October 11th
Comics & Hollywood: What Creators Need to Know

I plan to write an essay about what Iearned at Comic Con, but nothing beats being there yourself if you can. If any of you are planning on attending NYCC and you'd like a meeting to discuss the rights of your book, please send an email and we can set something up. Also, I plan to be in Artist Alley on Friday. If any of you have a booth, please let me know the number so I can try to stop by.

Otherwise,  you can find me at the Arkham Origins booth.

Have fun.
Gamal

Analysis and Results of the Great Independent Comic Survey Part 2

This post is a continuation of the Great Independent Comic Survey and covers distribution and merchandise rights.

Question 5: What percentage of your sales are hard copies?

Answer: 53% of the group makes 75-100% of their sale in hard copy.

Answer Choices	Responses
less than 25%	23.33%
25-50%	10%
50-75%	13.33%
75-100%	53.33%

Question 6: What percentage of your sales are digital?

Answer: 73% of the group claims less than 25% of their sales come from online distribution.

Answer Choices	Responses
less than 25%	73.33%
25-50%	16.67%
50-75%	6.67%
75-100%	3.33%

Question 7: How much of your sales happen at conventions?

Answer: 40% of the group sells less than 25% of their sales at conventions. This question had the most even distribution of all the survey questions.

Answer Choices	Responses
less than 25%	40%
25-50%	16.67%
50-75%	23.33%
75-100%	20%

Question 8: How much of your sales happen at comic book shops or other brick and mortar stores?

Answer: 60% of the group sells less than 25% of their books in comic shops.

Answer Choices	Responses
less than 25%	60%
25-50%	26.67%
50-75%	13.33%
75-100%	0%
Total	30

When these distribution questions are taken together, they suggest that there is significant room for growth in the digital sector, since both convention and bookstore sales do not appear to be robust. Reducing or eliminating the issue of shelf space, printing costs and shipping costs could have the effect of increasing sales and decreasing costs, but I don’t have enough information about fixed digital distribution costs to make a definitive statement about that.

Question 9: Do you control the merchandise rights to your title?

Answer: 73% of the group controls the merchandise rights to their titles. This is encouraging because there has always been a trend of certain publishers taking many other rights in addition to the publish rights needed to print the book (see Get What You Give). The downside to this is that 23% of the group learned to retain their rights after the rights to some titles were taken away.

Answer Choices	Responses
Yes	73.33%
No	3.33%
I control the rights to some properties but not others.	23.33%
I'm not sure who controls the rights to my titles.	0%

Question 10: Are you already selling merchandise based on your title?

Answer: 67% of the group is not selling merchandise. This is encouraging for two reasons. First, the fact that a third of creator owned books has some kind of merchandise supports the idea that there is a market for these goods. Second, the results show untapped potential for more merchandise, especially when you consider that a majority of artists retain the right to sell it.

Answer Choices	Responses
Yes	33.33%
No	66.67%

Conclusion

Based on the results of the survey, the market does not have the necessary volume for my proposed merchandise platform to thrive. That doesn’t mean that there is no value in releasing a creator owned book. It doesn’t mean that individual creators can’t set up their own creator owned merchandise and make it profitable. It does mean that there is an opportunity in both digital distribution and merchandise that independent creators can use to enhance the popularity and sales of their books.

If you have any questions about this survey, please let me know.

Have fun.
Gamal

Analysis and Results of the Great Independent Comic Survey, Part 1

Early this year, I wondered if the independent comics industry was ready for an independent merchandise platform (See Do You Want to Create Merchandise for Your Comics?). During the spring, I created a business model that would fulfill this theoretical need and discussed its’ potential. (See The Magic in a Batman T-Shirt).  Over the summer, I set up a survey to test the market and see if conditions were favorable for launching such a venture (See The Great Independent Comics Survey). Now that New York Comic Con is just around the corner, I’d like to share the results with you. While they don’t support my business model, I still think there are some important lessons that independent artists can take from the survey. This post intends to share both the results of the survey and my interpretation of those results.

 Methodology

Keep in mind that I am not a statistician. I don’t have a degree in marketing or any background in analytics. I simply asked ten questions to determine the current size and scope of the independent comics market. My questions might not have been ideally worded to generate optimum results. My sample size (based on the Facebook, Linked In and Google + groups I belong to) might not be representative of the overall US market. I just tried to work with the resources I had available. This is what I got.

I broke the survey into three parts; sales, distribution and merchandise rights.

Sales

Question 1: How many creator owned titles do you release per year?

Answer: 75% of the group releases 1 or 2 titles per year. This makes sense since creator owned projects are often passion projects that have to take a back seat to day jobs and paying work for hire gigs that up and coming artists need to gain recognition (See Entertainment Contracts 101). The reality from a retail standpoint is that more titles in the market provide more chances for readers to find a title and a story they like. If the one title available doesn’t suit them, the reader has to move on to another book.

Answer Choices	Responses
1-2	76.67%
3-4	10%
4-5	3.33%
5+	10%

Question 2: How many issues do you release for each title per year?

Answer: 87% of the group releases 1-4 four issues of each title per year. This reduces the market entry points for independent artists even further, because readers used to monthly offerings in the mainstream comics market are more likely to turn away from or forget a book that comes out quarterly or annually. While it might not be realistic given the time constraints, more issues of a title can raise the profile of the title as a whole.

Answer Choices	Responses
1-4	86.67%
4-8	6.67%
8-12	3.33%
12+	3.33%

Question 3: How many copies per year do you sell for each creator owned title?

Answer: 53% sell less than 100 copies, 23% sell less than 250 copies. This could be the result of many factors, but depending on the price point of each book, this suggests that many creator owned books lose money and do not recoup their initial investment.

Answer Choices	Responses
0-100	53.33%
101-250	23.33%
251-500	10%
501-750	6.67%
750-1,000	6.67%
1000-3,000	0%
3,000+	0%

Question 4: What is the average number of copies that you sell per month?

Answer: 83% stated that they sold an average of less than 50 copies per month. This question is an elaboration of question 3 that reinforces the idea that the overall sales of independent books have a lot of room for growth.

Answer Choices	Responses
0-50	82.76%
100-150	3.45%
150-200	3.45%
200+	0%
51-75	10.34%
76-100	0%

My next post will look at the distribution and merchandise aspects of the survey.

Have fun.
Gamal

The Great Independent Comic Market Survey

If you went to SDCC (or to any major convention) you know that merchandise is a major factor in the mystique of comics (See Making Comics Isn’t Really About making Comics Anymore). This is true because the lure of comics creates fans hungry for increased identification and connection to the characters they love (See The Magic in a Batman T-Shirt) Readers of this page know that I think independent comic creators deserve their own merchandise lines, just like the major players (See Do you Want Merchandise for your Comics). I think I'm close to a solution, but I need to find out if it makes sense for creators to get involved in the business.

That's where you come in.

I've developed a short survey to study the sales patterns of independent comics to test the viability of my model. It's short and sweet and if you take five minutes to answer the questions, there's a free gift in it for you.

Readers of my other page (See http://gamalhennessy.com/) know that I am also a published author. If you take the independent comic survey, I'll send you a free digital copy of my short story A Special Request as a thank you. Just send me an email after you finish the survey and I'll send it to you.

The survey is designed to benefit you and the book will (hopefully) be a classic one day so you win coming and going. I plan to keep the voting opened until August 20th. Make your voice heard.

Thanks in advance.

Have fun.
Gamal

Click Here to take the Great Independent Comic Market Survey

Deal with the Devil (How Comic Creators Get Their Rights Stolen)

When I started consulting private clients about licensing issues (See Client List), I thought it was going to be a low impact, secondary service. 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 a few 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 blatant attempt to hijack intellectual property from unsuspecting artists.

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, but the major ones are:

• You agree to give the publisher complete control of the property, not just the actual comics, but the underlying intellectual property (See Image and Story: Copyright and Trademark)
• You agree to give the publisher control of the property in all media ever created, not just in digital and printed comics (See Addition by Division: Separating Rights in Creator Owned Deals)
• You agree to financial terms that are designed to keep you from ever being paid for your work (See Your Slice of the Pie Parts 1 and Part 2)
• You agree to give up your rights without being paid for them (See Get What You Give: Rights and Revenue for Creators)
• You agree to never get back the rights to your property (See Eternity is a Long Time in Comics)

Of course, not every contract is written this way. Not every publisher is a demon attempting to steal your life's work. Some relationships between creators and publishers are much more balanced and fair in reality than they appear in the contract. But the history of comics is littered with famous stories of iconic characters being given away by their creators for little or no money. The current litigation concerning Ghost Rider is simply the latest chapter in a long line of cases. 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 (See David and Goliath: Negotiating Comic Contracts). Both of those concepts are true. I get it.

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 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. 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.

Have fun.
Gamal

PLEASE NOTE: THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF YOU HAVE A LICENSEING OR INTELLECTUAL PROPERTY ISSUE, DISCUSS IT WITH YOUR LEGAL ADVISOR OR CONTACT C3 AT gamalhennessy@gmail.com FOR A FREE CONSULTATION.

The Magic in a Batman T-Shirt: Why Licensing Works

Summer is comic book season in the entertainment world. Blockbuster movies pop up in theaters. Major video games debut at E3. Kids have their comic related clothing. Crossovers dominate the comics market, but mainstream media doesn't notice that unless Superman or Captain America die (again). The interest in the comic characters is arguably highest in the summer, but that interest is often focused on the 'secondary' market, not the source material.

Why? What makes a superhero based TV show or movie so popular? More importantly for our purposes, why does comic related merchandise sell so well every year? I originally explored this idea in an earlier post (See Making Comics Isn’t Really About Making Comics Anymore). Now I'd like to explore the social and emotional aspects of licensing, and those factors can help the independent comic creator.

Disclaimer: Most of my other posts have discussed the legal aspects of the comics industry, but this will be more of a pop culture analysis. While I don't have an anthropology or sociology background, these ideas come from the time that I've spent working and observing consumer behavior as it relates to licensed goods at Central Park Media, Marvel and as an independent consultant.

The Definition of Cool
There is no practical difference between a plain white t-shirt and a white t-shirt with a Batman logo on it. Both of them protect you from the elements and get you into restaurants that have a 'no shirt, no service' sign. But the Batman shirt can cost twice as much as a plain t-shirt. Why? Some might say 'because it's cooler than a plain old t-shirt.' That might be true, but what makes it cool?

A person who likes Batman and owns Batman merchandise gains three benefits that have nothing to do with the practical uses of the items. Those benefits are identity, community and nostalgia.

Personal Identitification: When a person relates to a character or a story, their connection to that brand increases. It could be Superman's morals, Wolverine's rebellion or Batman's determination that we aspire to. It could be the emotional impact of stories like Watchmen or Kick Ass or the wit of characters like Iron Man and Spider-Man. Wherever that connection comes from, a reader sees themselves (or wants to see themselves) in the characters they love. They emotionally identify with that character and on a certain level, the merchandise they wear is an expression of that identity.

Community Acceptance: Humans are social animals. We like to organize ourselves into groups based on some defined characteristic. We are also highly visual creatures. We make decisions about people based on what we see. When we see someone who we perceive to be similar to us, we are more likely to accept them and feel a sense of connection to them, however small that connection might be. This is easiest to see in children. Two boys meet for the first time in the park. Both are wearing Batman t-shirts. "You like Batman! I like Batman too! Let's play!" Now they're friends, very little additional interpersonal screening between them.

Emotional Nostalgia: Merchandise can be a subtle reminder of a past experience with, the power to evoke much of the initial emotions. If you have fond childhood memories of watching Batman cartoons, the Batman t-shirt can act as a kind of artifact. It can bring your mind back to a pleasant event in your life and impact your mood whenever you see it.

Not Just for Comics
It’s a mistake to think that the identity, community and nostalgia concepts are unique to comic geeks and unsophisticated children. Groups on every level of society share the same qualities. They just use different products. A man might express his wealth and status with his Mercedes or his Rolex. A woman can instantly accept or reject another woman because of her Prada handbag or Gucci shoes. A football fan has a connection to the jersey he wore when his team won the Superbowl. The baseball fan has his signed glove. In a larger sense, consumer products on every level use logos to evoke emotional responses in order to sell goods and services. Starbucks, Apple and Nike are universal examples of logo and merchandising power.

The Cure for Oversaturation
With all the merchandise, logos and product placement in our society, why would an independent artist want to add to the wall of noise by selling his own stuff? The answer is evolution.

There was a time when certain characters, logos and stories were popular with a small, but passionate audience. Success and mainstream over time acceptance elevated those properties into the icons that we have today. Now they have become diluted and altered. The sense of community they created has extended so far that it covers almost everyone. Ironically, the wide appeal of a character all but eliminates the original connection the first fans had to it. (See Ninja Turtles: From Parody to Property) People inevitably seek out new characters and icons to identify with. They look for smaller, more passionate communities to connect with. The independent artists of today can create the icons of tomorrow if they decide to extend their work beyond the page and into everyday life.

The Power of Story
How does an artist create an iconic character that translates into a successful licensing property? Two of the keys are appeal and evolution. Appeal comes from good stories. No matter how unique and merchandise ready your character might be, without great stories readers, won't identify with the character, connect with other readers or feel any nostalgia for the property. Evolution comes from a consistent relationship between the character and society. Comic book icons like Superman and Batman are more than 70 years old. Each one has changed with the popular culture, and target audiences, to create identification without losing the core concept of the character. The image is what goes on the item for sale, but it is the story that makes the property successful. (See Image and Story: The Role of Copyrights and Trademarks in Comics).

I'm planning to launch an on demand independent merchandise platform for comic creators this year (See Do You Want to Create Merchandise for Your Comics?). My most successful partners will be the ones who can capture the magic of merchandise in their characters and extend their popularity far beyond the comic book page.

Have fun.
Gamal

PLEASE NOTE: THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF YOU HAVE A LICENSEING OR INTELLECTUAL PROPERTY ISSUE, DISCUSS IT WITH YOUR LEGAL ADVISOR OR CONTACT C3 atgamalhennessy@gmail.com FOR A FREE CONSULTATION.