Key Standards for Influencer Marketing Agreements

From Music to Law

Casey Handy-Smith's journey to becoming a lawyer is as unique as her specialization. Growing up in a creative, musical family, Casey initially pursued a career in music. Her curiosity about the business side of the industry led her to study music business in college, where she was introduced to the legal aspects of the creative space, sparking her interest in intellectual property law. After graduating law school and passing the bar, Casey became an Entertainment & IP Attorney and the Founding Manager at C. Handy Law, PLLC, specializing in helping brands and creators collaborate with clear expectations and protected rights.  

The Booming Influencer Marketing Landscape

The influencer marketing industry has experienced explosive growth, projected to reach $24 billion by the end of 2024. This represents a significant increase from $21 billion in 2023 and $1.7 billion in 2016. The space is populated by millions of influencers across various platforms, with Instagram being a dominant force and TikTok rapidly gaining ground, with 69% of brands now using it for influencer marketing efforts. YouTube also remains a powerhouse, boasting 2.5 billion users and high engagement rates.

Critical Standards in Influencer Marketing Contracts

Services agreements play a pivotal role in the influencer marketing landscape. "There are core areas in brand contracts that are important for influencers like intellectual property ownership, making sure that they own those rights”, says Handy-Smith. Key elements often include:

• Intellectual Property Ownership:
  • Clarifies who owns the content created by influencers, preventing disputes over rights to valuable creative assets
  • Allows brands to potentially repurpose content across different marketing channels

• Usage Rights:
  • Defines how, where, and for how long brands can use influencer-created content
  • Prevents unauthorized use of influencer content in ways that could damage their personal brand
  • Allows for negotiation of additional compensation if brands want to extend usage beyond initial terms

• Indemnification:
  • Protects parties from financial liability arising from the other party's actions or negligence, particularly important for influencers who could face legal issues from content created at a brand's direction
  • Helps maintain professional relationships by clearly defining responsibilities in case of legal disputes

• Limitation of Liability:
  • Caps potential financial damages for both parties in case of contract breaches or other issues
  • Especially crucial for influencers who are often small business owners and could face bankruptcy from unlimited liability
  • Encourages collaboration by reducing risk for both brands and influencers

Impact of AI-powered Contract Review

Casey was introduced to Screens.ai through her involvement with Contract Nerds, where she had written an article about influencer brand deals. Screens.ai, an AI-powered contract review tool, allowed Casey to transform her expertise in influencer contracts into AI-powered contract playbooks she could use over and over, enhancing her ability to serve her clients efficiently.

The impact of using Screens.ai on Casey's work has been transformative, particularly in supporting her members of The Contract Collective: "Screens has allowed me to provide these managers with an affordable option to get the legal support to better understand influencer contracts and how to enforce them.”

Feedback from members has been overwhelmingly positive: "The feedback that I've gotten from my members is that they love using Screens! It saves them a lot of time, and gives them the assurance that they aren't missing important terms." For Casey personally, the benefits are clear: "It saves me time when answering their questions, and it allows me to support them at scale while also educating them on these contracts."

Embracing AI in Contract Review

Casey exemplifies how legal professionals can leverage innovative tools to enhance their practice, provide more value to clients, and stay ahead in a rapidly changing legal environment. Casey describes Screens as "a platform that allows you to redline and review contracts through the power of AI, and that, unlike competitors, enables you to create your own playbooks that you can utilize yourself."

By integrating AI into her legal practice, Casey has not only streamlined her own work but also provided her clients with more efficient and cost-effective legal support, demonstrating the transformative potential of AI in the legal and influencer marketing industries. 

To learn more about Casey and her influencer marketing contracts expertise, visit The Contract Collective, connect with her on LinkedIn, and check out her article, How to Negotiate Influencer-Brand Collaboration Deals.