Re: Liability when re-selling movies that may have illegal copyrighted materials

You could be potentially liable if you knew or should have known that they were using infringing material -- e.g., some type of notice.

On question two, you can shift liability to the producers via contract and you seem to be trying to draft an indemnification clause combined with a assurance. I can help you with the drafting project as well as other things I think.

Contact me if you think so, too.

Re: Liability when re-selling movies that may have illegal copyrighted materials

Question 1: The technical answer is yes which is why you need a properly drafted agreement which addresses this issue. Even blockbuster faces these kind of issues but as long as you are contractually protected you will be in good shape.

Question 2: Again, you have the right idea but you need to have a properly drafted contract so that there is no question about the indie company's warranties, representations, and agreement to indemnify (be responsible) if an infringement did occur.

I could help you with this if you would like. Regardless, do not try to draft this kind of contract yourself. You need to have an entertainment attorney draft the agreement. The small price you will pay for the contract far outweighs getting caught up in a law suit for copyright infringement.

Thank you.

Re: Liability when re-selling movies that may have illegal copyrighted materials

You could be liable for copyright infringement under some circumstances. But, regardless, you could be sued for copyright infringement, and that costs money whether you are "guilty" or not. To protect yourself, you should require your suppliers to indemnify you via a contractual indemnity clause. This would allow you to hold them responsible for any attorney's fees that you incurred defending yourself in a law suit related to their product, or for any damages awarded against you. A proper indemnification clause can help protect you - although only to the extent you can get the money from the other party!