As influencers continue to dominate the social media market, we hope to help expand your knowledge of critical ways to protect yourself while still benefiting from your unique opportunities. One important term to be aware of is: Indemnification. Those who understand Indemnification can use it as a shield to protect their image and professional relationships. In this blog we will address what Indemnification is and why it is a vital shield influencers should be utilizing.
What is Indemnification?
Indemnification is a legal concept that typically appears as a contract clause. An Indemnification clause essentially outlines the responsibilities and liabilities between parties in the event that legal claims or losses arise from the partnership. When used in this context, Indemnification will show up in the brand ambassador agreement between an influencer and a brand. It will specify whether the influencer or brand is responsible if something goes wrong; thus acting as a protective shield.
Why Does Indemnification Matter to Influencers?
- Protection Against Legal Claims. Indemnification clauses can be utilized to protect influencers from legal claims, such as copyright issues with content created or disagreement regarding product promotion, that may arise during their fulfillment of the brand ambassador agreement. For example, an influencer who includes an indemnification clause in their agreement will benefit from terms that state the brand indemnifies the influencer against any and all liability that arises in connection with the agreement.
- Clarifying Responsibilities. Influencers who use indemnification clauses have an opportunity to explicitly detail who is responsible for legal fees, settlements, or damages in the event of a lawsuit. This benefits influencers since it establishes boundaries and clarifies expectations, leading to a more professional relationship with the brand.
- Preserving Relationships. Contracts that include indemnification clauses ensure that if legal issues arise, they're addressed in a structured manner. This minimizes the risk of damaging the influencer and brand’s professional relationship, and increases the likelihood they’ll want to work together again in the future.
How Does Indemnification Apply in Real Life?
Famous influencer/actress Molly Sims found herself in hot water when Petunia Products sued both her and Rodan & Fields over a post she made promoting Rodan & Fields’ “Brow Defining Boost” product. Petunia Products felt that her post and the product name infringed on their registered trademark for “Brow Boost.” Molly Sims attempted to get herself removed from the lawsuit since she was directed to use the potentially infringing mark at the direction of a third-party brand. Unfortunately for Molly, the Court did not dismiss her from the suit.
This is a prime example of where a strong indemnification guarantee would have benefitted the influencer. If the sponsorship agreement between Molly and Rodan & Fields had addressed indemnification, the company would have been legally required to protect Molly when this suit arose. If there was no indemnification provision, the influencer would be legally responsible for the entirety of court costs, attorney's fees, etc. to defend the claim, as well as any damages in the event the lawsuit was lost.
Conclusion
In the world of influencer marketing, where collaborations bloom, understanding the nuances of indemnification is of utmost importance. This legal safeguard ensures that while you focus on creative partnerships and content creation, you and your image are also protected from potential legal pitfalls.
Contact Venustas Law if you have any questions about indemnification or want to know if your current agreements address this and protect you.
