Pro-Imaging

10 December 2008

In response to numerous inquiries:

In light of the crises in the financial world in general and in the stock industry in particular, there will likely be a wave of additional bankruptcy filings in the photography industry.  Indeed some have already taken place.  In the most recent one that we are aware of, Superstock, there were press reports that it plans to sell its assets, which includes contributor contracts, to Masterfile.  In bankruptcy this is a complex process that can require a number of evidentiary hearings and sometimes litigation.  Such a “sale” cannot take place without the contributors’ participation unless the contributors elect to do nothing.  Do not assume that merely because a company seeks protection under the Bankruptcy Law (files) that you are without a remedy and will “never see a dime”.

Our in house bankruptcy counsel, Randy Kornfeld, advises:  As licensors of copyrighted material, you have substantial rights in this process that will likely be ignored if you do not exercise them within certain time periods set forth by law and in certain notices you will receive.  These notices may come from a bankruptcy court itself, a bankruptcy trustee, the company filing for protection and/or a law firm.  Typically the sale cannot go forward without your approval and you may be entitled to be paid any and all outstanding royalties due to you before the contracts can be, in bankruptcy parlance, “assumed and assigned”. 

Many other issues including whether your imagery may be employed in manners against your wishes may also be in play.   Time is of the essence and you must act quickly.  Sloth will get you screwed.  Photographers are notoriously lazy when it comes to asserting their legal rights.  There is no margin for error here. The mathematical formula is: unnecessary delay equals zero.

You must promptly consult with an attorney familiar with bankruptcy practice in order to protect your rights.   The intricacies of bankruptcy law and practice frequently confound attorneys who do not specialize in bankruptcy matters. Lay people would be well to seek out seasoned bankruptcy professionals rather expose their livelihoods and imagery to total loss.  Simply put, unlike mowing your lawn or changing a flat tire, ventures into bankruptcy law are not a do-it-yourself operation. And one more thing, don’t seek advice regarding bankruptcy issues from another photographer.  See also, “blind leading blind”.

December 10, 2008

New York, NY

Edward C. Greenberg, PC

570 Lexington Ave.

17th Floor

New York, NY  10022

(212) 697-8777