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Hollywood Adventures in GenAI
Guest: Louise Nemschoff - Entertainment Lawyer
The entertainment industry in the US, with revenues in 2022 of about 8.5 billion dollars, is only three hundredths of one percent of the 23.3 trillion dollar US economy. However, entertainment is far more important to society as a whole than the industry’s financials might suggest.
In 2022 when large language models like OpenAI’s ChatGPT and Google’s Gemini began to show signs of prodigious capabilities in the entertainment domain, studios began to experiment with using AI in lieu of actors and writers. In response to the refusal by the studios to negotiate guardrails for the use of AI, the unions representing the writers and actors went out on strike and forced negotiations.
The agreements concerning the status of generative AI that were instrumental in settling the strikes are a tremendously important step in establishing governance of AI in operational practice, at least for one industry. These agreements may hold important lessons for other industries.
We are fortunate to have as our guest for this episode Louise Nemschoff, who practices entertainment and copyright law in Los Angeles. She represents a wide variety of parties in both domestic and international transactions.
Recorded: 2024-04-01
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To Read Further
Louise Nemschoff’s website: https://www.nemschofflaw.com/
Size of the US entertainment industry: https://www.statista.com/outlook/dmo/app/entertainment/united-states
Glossary
Content
Adapted script
A script adapted from a previously published literary work (a book, short story, theatrical script, or other literary source).
Literary material
Some original written work - book, story, script, or other form.
Original script
A script originally written for a movie or TV production.
Treatment
A short summary of a proposed script to be written for a movie or TV production. The proposed script may be an original work or an adapted work.
Rewrite
A revised script. Generally a rewrite involves major changes to the previous script.
Polish
A minor revision to a script. Generally polish involve minor changes to the previous script.
Compensation
Direct compensation
Guild Minimums (Scale) as set forth in rate cards
Residuals
New Streaming Success Bonus
Other Contingent Compensation (in individual talent contracts
Gross Profits (often paid in the form of an advance)
Adjusted Gross Profits
Net Profits (Art Buchwald’s “monkey points”)
Screen Credit
Organizations
DGA
Directors Guild of America
I.A.T.S.E (pronounced eye-ott-see)
International Alliance of Theatrical Stage Employees. Sometimes also known as the I.A. It is actually a group of local unions representing different types of crew members in live stage, film, and television productions (e.g. art directors, cinematographers, editors, grips, costumers, make-up and hair stylists, animators, and set painters / sign writers). Other unions represent or are organizing other crew categories including the Teamsters and the CWA (Communications Workers of America).
MPA
Motion Picture Association
Formerly known as: MPAA, Motion Picture Association of America
A studio trade association. Its primary activities are its rating board and piracy prevention. Sometimes also referred to as “the Studios.”
AMPTP
Alliance of Motion Picture and Television Producers
Represents over 350 producer members.
Often referred to as ‘The Studios’
This dates from when the major Hollywood studios were the lead negotiators for the AMPTP
More recently the AMPTP have been joined by the new production giants, the streamers (Netflix, Apple, Amazon / MGM)
SAG-AFTRA
Screen Actors Guild-American Federation of Television and Radio Artists
Studio
Sometimes a synonym for AMPTP in the context of collective bargaining negotiations
WGA
Writers Guild of America
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