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Sunday, February 8, 2015

Negotiating Win-Win Contracts


In this podcast, the author shows the specific ways to wriggle out of a dramatic negotiation and create a win-win outcome. In the video he describes how to separate the people from the problem, invent options for mutual benefit, and insist on using objective criteria. These same principles are explained in the book Getting to Yes, which the author cites in his video description. In learning how to separate the people from the problem, the podcast demonstrates how to express feelings and interests and avoid blaming the other.

In learning how to protect oneself from dirty tricks, the video first explains the three most common dirty tricks negotiators can use: deliberate deception, psychological warfare, and positional pressure. When dealing with deliberate deception, it is best to separate the people from the problem by not blaming or being intimidated, but don’t trust the other, and verify their information by doing your research. When a party tries to use psychological warfare, such as scheduling the meeting on “their turf”, the author recommends that you accept their invitation as this may encourage them to listen to you more, plus it allows you to walk out easier. If they’re using personal attacks, such as calling your ignorant for example, he suggests you “raise the issue” directly instead of letting it go. In the third dirty trick most frequently used in negotiations, positional pressure, the author says to see the tactic of a refusal to negotiate (for example) as an actual negotiation ploy. Don’t attack them for not negotiating, and instead find out their reasons (interests) for not wanting to negotiate, and then suggest some other negotiation methods (BATNA), such as using a third-party to mediate.


In this valuable video, Caleb Prochnow confesses that negotiating contracts are “about the scariest thing” he has ever had to do as an artist. He explains the value of negotiating your pay by reminding the audience that their work is valuable, and that “your art is worth money to the client”. The type of work they are getting from the artist is unique. He states, “You’ve got the winning hand” because “they want what you have.” He then goes on to say that the best thing you have in negotiation is “awkward silence”. He says that if you break the awkward silence, you lose the negotiation. The next person that talks is the one that loses”. This is specifically against what we’ve learned in the book, Getting to Yes, which emphasizes separating the people from the problem and focusing on interests. So his suggestion most applies to the suggestion of what to do if someone tries to say “take it or leave it” in a dirty-trick negotiation tactic. Ignoring them and continuing on as if you haven’t heard them is the best plan. So in this sense, he provides good advice.

In his discussion of copyrighting your material in a negotiated contract, he states “you can negotiate full rights and full buy-out of your original work, but get paid for it…because they will be making money on your work. You are transferring authorship to someone else in a work-for-hire contract.” This is also an interesting correlation to the principle of insisting on using objective criteria. Being prepared prior to this meeting, and knowing what the industry standards are, an artist can avoid having their art stolen or exploited. If they don’t want to give full ownership of their work, they need to negotiate royalties in the contract. As an artist manager and entertainment company CEO, this presentation was incredibly valuable.



In this podcast, Hollywood Entertainment Attorneys Eric Weissmann and Paul Levine do a mock negotiation at the Sherwood Oaks All Access to Hollywood Screenwriters' Event on February 9, 2008. They are negotiating a mock contract between a studio executive and the manager of a script-writer. This podcast was valuable because it demonstrated the necessity of doing one's research prior to negotiating a contract. Finding out the industry standards, a background on invested interests, as well as other objective criteria, and a BATNA is a prerequisite to dealing with an executive at a studio. Since this is my line of entertainment business, this video was invaluable. What they demonstrate in this mock negotiation shows the specifics of entertainment negotiations…which tend to be more informal than usual business negotiations. They also illustrate how studios try to get as much from the writer as possible before they will even pay the writer. They discuss how "the writer’s guild rules" are imperative in negotiating these types of contracts. The studios will always try to give the minimum of what is legal. In this presentation they also stress how the royalties and/or payment for your work is an important aspect of the contract negotiation. One’s “writing” can be viewed as their artwork, and so the copyrighting of ownership is thus paramount to any contract negotiations. Knowing the standards, as well as what you will and won't accept prior to the meeting is necessary.