Building compliant partnerships in the content creator economy

The content creator economy, now valued over $500 billion globally, is creating a unique legal landscape within the entertainment industry. Unlike traditional entertainment clients who operate through established gatekeepers, today's creators are building personal brands, monetizing cross-platform audiences, and entering direct-to-brand deals -- sometimes without the involvement of studios, agents or standard frameworks. This shift has created an influx of legal needs worth exploring in more detail.

Because content creator deals typically lack standard terms or precedent, every deal is bespoke. In addition to negotiating influencer agreements and drafting custom licensing deals, attorneys are guiding clients on IP ownership, FTC disclosure compliance, and monetization strategies involving affiliate links, brand ambassadorships and white-labeled products. In other words, they are looking to attorneys to help build and grow their businesses.

Expanding monetization -- looking beyond the "influencer" box

As the content creator economy matures, the most forward-thinking creators are no longer limiting themselves to one-off influencer campaigns or static sponsorship posts. Instead, they are pursuing deeper brand relationships -- joint product lines, co-branded experiences and even equity partnerships. These ventures allow creators to leverage their audience into long-term, scalable revenue streams.

For example, MrBeast launched Feastables, his own snack brand, built in partnership with established food manufacturers and retail distributors. This venture gives him equity, brand control and recurring revenue well beyond a sponsored post. Other examples include Charli D'Amelio's collaboration with Dunkin' -- which evolved from a signature drink to a multi-product line -- and Rihanna's Fenty Beauty, co-owned with LVMH, which has transformed a celebrity endorsement into a billion-dollar brand built on inclusivity.

These ventures transform creators from advertisers into true strategic partners, with vested stakes in the product's success -- where creators are not hired talent, but co-architects of the brand experience. However, with greater opportunity comes greater need for sharper negotiations.

Legal challenges for creators -- key contract and IP pitfalls

Creators frequently enter into brand deals with vague scopes, unclear deliverables and insufficient IP protections, which makes the contractual relationship ripe for disputes.

One common source of friction is usage rights. Brands often overreach, repurposing content across channels without clear permission. Attorneys must watch for broad or perpetual licensing language, especially when the creator retains copyright ownership.

Exclusivity clauses also create tension. Without precise language, creators may inadvertently restrict themselves from working with multiple brands. Terms must be platform-specific, time-bound and industry-limited. Approval rights are another overlooked area. The creator's content may be rejected or edited unreasonably post-creation, and therefore agreements should define approval windows, edit limits and cancellation consequences.

Another area of challenge is disputes over jointly created content when creators collaborate with editors, videographers or brands who add creative contributions. Without a written agreement defining ownership or licensing, disputes can delay or derail content releases.

Infringement issues are another area of caution. Creators often incorporate third-party content such as trending songs, video clips, memes, or background art without understanding the limitations of "fair use" or the licensing requirements imposed by platforms. This becomes especially problematic when content is used as sponsored posts or brand campaigns. Attorneys should help establish clear guidelines for content clearance and encourage the use of royalty-free or properly licensed media.

Artificial Intelligence (AI) is also playing a significant role in the creator economy. From AI-generated images to auto-edited videos, creators use these tools to scale content and optimize workflows. But with this innovation comes regulatory scrutiny. The Federal Trade Commission (FTC) has made clear that any "material connection" between a brand and an endorser, human or synthetic, must be disclosed. This includes payments, free products, affiliate commissions, discount codes, or any incentive that could affect the endorser's objectivity.

By negotiating these terms, creators can protect their intellectual property, maintain creative integrity and secure equitable compensation. Key deal points to prioritize include:

• Exclusivity - Narrow scope by category, platform and geography

• Clear usage rights - Define exactly how, where and for how long the brand may use the content. Avoid "in perpetuity" language unless properly compensated

• Payment terms - Ensure clear timelines, milestone-based payments and late-payment remedies

• Indemnity provisions - Limit the creator's liability to claims arising from brand-provided materials or instructions

• Termination clauses - Set reasonable notice periods and clarify obligations if the partnership ends early

Case study examples -- lessons from the courts

Although the creator economy is relatively new, courts have provided guidance on many issues. In fact, several recent cases demonstrate how both brands and content creators can quickly find themselves on the wrong side of the law, especially as it relates to disclosure.

One example is the Lord & Taylor case (In the Matter of Lord & Taylor, LLC, File Number 152 3181 C4576, 2016) where the fashion brand paid influencers to promote a dress on Instagram. However, none of the influencers disclosed the posts were sponsored. The FTC ruled this deceptive, placing liability squarely on the brand, not the individual influencers involved. From this case, a key takeaway is that any time value, whether payment, gifts or perks is exchanged for promotion, a clear disclosure is required.

In Teami, LLC (FTC v. Teami, 8:20-cv-00518 M.D. Fla. 2020), the FTC went further. The wellness brand made unsubstantiated health claims and paid celebrities like Cardi B and Adrienne Bailon to promote its products, again, without clear disclosures. The FTC issued warnings and required the company to reform its marketing practices. This shows that even top-tier talent isn't immune from enforcement if disclosures aren't properly made.

Most recently, in Sydney Nicole LLC v. Sheil (Gifford v. Sheil, 1:24-cv-00423, W.D. Tex. 2024), an influencer sued another for copying her promotional style across 60+ posts. Claims of copyright infringement and misappropriation of likeness were allowed to proceed, highlighting that even mimicking someone's aesthetic can trigger legal consequences.

Conclusion

The content creator economy demands that attorneys treat brand partnerships and monetization opportunities as sophisticated IP and commercial transactions, not casual marketing deals. Precise drafting on exclusivity, usage rights, payment terms, indemnification and termination clauses is essential. Equally critical is ensuring FTC disclosure compliance and clear copyright ownership. With regulators increasing enforcement and brands pushing for expansive rights, counsel who apply the same rigor here as in any high-stakes contract will safeguard clients from disputes and position them to maximize the long-term value of their creative assets.