A Reality Check for Content Creators With YouTube Channels

It's no secret that YouTube has effectively replaced television and the radio in terms of the distribution of content.  For my clients who have YouTube Channels, and use that revenue as part of their business strategy, there is a recent study from Offenberg University in Germany that holds that the average YouTube channel owner can't generate enough cash to crack the poverty line in the United States.

The language of the write up in Bloomberg I've linked to is bleak, but it is a bit overly glum in my opinion. 

While YouTube's payment rates are a bit opaque, to be kind, my advice to budding entrepreneurs and creators out there is that revenue from a YouTube channel should be part of your strategy, but not your entire strategy.  Every stable business is stable because it has multiple revenue streams, and that concept certainly applies in the new economy. 

Announcing Legal Boot Camp for Creatives

On January 24th, in partnership with ArtsQuest, I present Legal Boot Camp for Creatives, a one hour session where small business owners and creators can learn what steps they should take in order to protect their assets, organize their business and limit their liability when entering into business transactions.  If you are a freelancer and/or creator, this session is for you! 

Tickets are ON SALE NOW HERE. 

This is the first in a  monthly series with ArtsQuest that will continue through June 2018.  More details on the next sessions will be available soon. 

Selling Your Business? Here are Three Things to Know...

Selling your business can be one of the largest and most financially important transactions of your life. In almost 20 years as a transactional lawyer, I've learned a few rules of thumb that can help ensure you have a smooth sales process.

You can subscribe to my video series, Tuk's Rules, on iTunes or YouTube for free!

When Video Game Makers Sue Users for Broadcasting Cheat Codes

The video gaming industry is a massive, multi billion dollar business in the United States.  It is also a business that is almost totally intangible (with the exception of merchandise sales that carry the branding of individual companies or game titles.

Computer code is copyrightable, and before any major titles are released, that software is in fact protected by trademarks and/or copyrights.  

As one would expect, the video game developers protect their intellectual property through the use of copyrights, patents, trademarks, all of which are enforceable.  If they can't protect their IP, then they don't have a product to sell. 

There are a couple of new concepts at play in this legal update, but the basis for litigation described below is traditional copyright law. 

If you have a child or young person in your life who is under the age of 18, you know that one of the most widely watched type of YouTube videos are gaming videos, where a video gamer has recorded (or has livestreamed) his or her gameplay, and provided commentary of what he or she is doing. The actual online environment of the game is broadcast via YouTube.  

One thing that gamers tend to publish on YouTube are cheat codes for certain video games.  What is a cheat code?  A cheat code is just what it sounds like they are: pieces of software that can be downloaded that give the cheat code user special powers or abilities within the game that other players do not have.  With the rise of multiplayer games, there is an expectation in the game player community that the playing field (no matter how virtual) is level, and that all players are operating within the same online environment without unfair advantage.  More on that later. 

It's not surprising then that a company like Epic Games would file suit in federal court alleging a copyright infringement claim, among other claims, against an individual who admitted to using cheat codes on his YouTube channel.  Why?  The plaintiff alleges that the defendant violated Epic's End User Licensing Agreement ("EULA") by using and broadcasting the cheat and refusing to take down the YouTube video, among other copyright infringement claims.  It is important to note two things: 1) the original game was free, and apparently there was no consideration paid for the initial game, and 2) the defendant is a minor. 

There are many questions before the court in this case.  Is a cheat code a violation of copyright law?  Is an EULA enforceable against a minor?  Did the plaintiff violate the defendant's privacy by publishing his name?

While this case is in the beginning stages, there will be additional updates as it progresses. 

A Guide for Nonprofit Leaders During Election Season

Whether you are an executive director of an art museum, dance company, a faith based organization or sports league, if you run a nonprofit organization, election season presents some challenges. The federal primary elections are heating up, and this is a great time to revisit the rules for nonprofit organizations regarding political activity. 

Under the Internal Revenue Code (the “Code”), public charities are wholly prohibited from participating in any political campaign on behalf of - or in opposition to - a specific candidate for office.  This prohibition is against direct or indirect activity.  Also, it should be noted that these rules do not pertain only to federal elections, state and municipal elections and candidates are also covered by this rule. 

Participation can mean the contribution of political campaign funds, or any public statement or advocacy specific to any candidate for public office.  Violation of this rule may result in the revocation of the nonprofit’s tax exempt status. 

Certain activities are permitted, however:

1. Voter education activities in a nonpartisan manner;
2. Voter registration drives;
3. Get out the vote drives; 

However, if any of the above activities are undertaken with evidence of bias in favor of - or against  - a particular candidate, then such activity would arguably constitute campaign intervention and thus be prohibited activity. 

Specifically of interest for nonprofit executive directors and CEOs, the prohibition against campaign intervention is not intended to restrict your first amendment rights as a private citizen.  Best practices in this circumstance are to preface any comments you make publicly (whether verbal or in print) that they are your personal beliefs and not intended to represent the views of your organization.  Nonprofit leaders should avoid, however, making any partisan statements at official organization events. 

If you have any questions about political campaign activity and your nonprofit, please contact us today.