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Home»AI»‘We need an AI clause’: AI craze prompts rethinking influencer name, image and likeness rights contracts
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‘We need an AI clause’: AI craze prompts rethinking influencer name, image and likeness rights contracts

5gantennas.orgBy 5gantennas.orgAugust 19, 2024No Comments6 Mins Read
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The hype around generative AI seems to be seeping into every sector, including influencer marketing. In response, influencers and content creators are taking a closer look at their contracts with brands, ultimately looking to future-proof their intellectual property and content usage rights.

“It makes me feel a little paranoid because my voice is everywhere,” says Joy Ofodou, a full-time creator and voice actor. In light of the AI ​​boom, Ofodou has started including AI-related riders in her speaking engagements, asking clients not to train, adapt or modify her voice with any AI system.

“I’m very open to sending this offer and wanting my customers to consider it, and fortunately most of my customers have,” she said.

AI has transformed influencer marketing, with marketers commissioning content from creators using generative AI in whole or in part, leading to a resurgence in virtual influencers and AI-generated content creators. And last week, SAG-AFTRA inked a deal with Narrativ, an online platform that allows performers to license digital voice replicas for use in audio ads. The deal allows advertisers to use AI to replicate actors’ voices, while allowing performers to choose which brands they want to work with and at what price.

That hasn’t meant there’s been no backlash: SAG-AFTRA’s video game performer members have staged walkouts against major companies over AI use and consent, and last month, AI video generator Runway came under fire for training thousands of YouTube videos from news organizations, entertainment companies, and creators without permission.

While AI clauses in influencer and brand contracts aren’t yet standard, the topic is getting influencers thinking, said Steven Sharpe, who has more than 24,000 followers across TikTok and Instagram and is founder of Novius Creative Studios, a creative shop and talent agency.

“My view is that as things move into the AI ​​space and AI starts scouring all content, there will be questions about who owns what,” he said. He added that questions are swirling about how that content is being used by AI and who is making money off the likeness of creators. Sharp hasn’t included AI provisions in his contracts because he “doesn’t want to act prematurely,” but he added that he is taking a closer look at contractual content usage rights as a precaution.

A larger content conversation

The debate around AI and influencer marketing is rooted in a larger debate about content usage rights – the legal permissions that govern how and when brands can use creators’ content.

Influencer marketing is maturing rapidly. To maximize its impact, marketers are paying for creators’ content and spreading it across a brand’s own social and digital channels, streaming platforms, and even retail media networks. In response, creators and influencers have become more adamant about setting a precedent for usage rights of their names, images, likenesses, and content. AI just adds another layer to all of this, says Lindsay Calabrese, director of brand partnerships and culture at ad agency Team One.

“The situation is changing so quickly that there needs to be an AI clause and creators need to make sure it’s there,” Calabrese said, adding that they’re still trying to understand how quickly AI is advancing.

Historically, brands had free reign over usage rights for their content, she added, which ranged from six months to perpetual (also known as forever). As influencers and creators have become more savvy about contracts, the standard has changed to 30 days. This not only gives influencers more control over how and when their content appears both online and in the real world, it also means increased payouts for creators.

“Currently, intellectual property usage rights are arguably the biggest factor enabling creators to charge higher fees for working with brands,” said Neil Waller, co-founder and co-CEO of creator company Whaler Group. By adding usage rights to influencer and brand contracts, Waller said, creators can increase their pay by two to ten times while putting out the same amount of content, and brands can continue to use that content for the agreed-upon period.

Increased rewards for creators

For example, Sharp charges $300 per asset per month for content usage rights and issues brands a recurring invoice. So if a brand wants to leverage four social posts over the life of a particular campaign, it would cost the brand $1,200 per month. However, Sharp avoids full usage rights, allowing them to ultimately own not only their content, but their name, likeness, and image as well.

“The reason people buy the rights to use content is because they want to profit from it,” he said. “I know how the industry works, and it’s my way of presenting myself as a very knowledgeable person as a brand partner.”

Meanwhile, the rights to use Ofodu’s content are discussed during client onboarding meetings, she said, and fees for use on a brand’s website can run more than $1,000.

In the big picture of social media marketing, brands need a nearly limitless amount of content to keep up with how consumers spend their time. For example, according to Gallup, more than half of U.S. teens spend at least four hours per day on social media. So it’s no surprise that many brands are turning to influencers and content creators to build their content libraries.

“By not investing in creator content and getting the most out of it, you’re not only wasting money, you’re overspending in other areas,” Waller said.

He added that the industry is still far from standardizing on how each player approaches content usage rights, especially as the influencer economy and AI hype cycle continues. Needless to say, in the upcoming election season, political candidates are expected to turn to influencers for organic reach. At the same time, the next US president will need to consider things like AI regulation as AI continues to be integrated into more technologies. (You can read more about where Vice President Kamala Harris and former President Donald Trump stand on big tech issues here.)

Still, creators are trying to set a precedent, Ofodou said, pointing to the SAG-AFTRA agreement and other legislation she and other creators are advocating for to protect themselves as AI continues to evolve.

“If we do not insist on the necessary legislation this year regarding the rights of way for the project, it will not become law for the next few years because it is unprecedented,” Ofodou said. “This is a historic time.”



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