1. Disputes in the Entertainment Industry

The entertainment industry today is everywhere. Music, film, live shows, podcasts, influencer content, branded events – these are no longer the exclusive domain of major studios or international stars. Companies work with entertainers, sponsor events, commission video content, and collaborate with social media personalities to promote their brands. In short, business and entertainment are closer than ever.

Disagreements about intellectual property, missed deadlines, unclear licensing rights, or disputes with performers or producers can quickly turn costly, time-consuming, and frustrating – especially when publicity is involved. Many of these situations involve cross-border issues, reputational risk, or highly specialized content, such as conflicts over cancellation and non-performance in live events, royalty accounting disputes in long-term licensing agreements or uncertainty regarding ownership, usage rights, and control of co-created influencer content. Disputes in the entertainment world arise from a mix of creative complexity and commercial expectations. Whether it is a film production involving multiple rights holders, a music video commissioned by a brand, or an influencer campaign that has gone wrong, the legal pitfalls are similar.

Unclear ownership of intellectual property is a common source of disagreement. Who owns the final product – the client, the agency, or the artist? Contracts do not always clearly define usage rights across platforms, countries, or formats. This becomes even more problematic when content goes viral or is reused outside the original scope.

Licensing is another common area of tension. A company may assume they have full rights to use music or visuals in a campaign, only to find out that certain rights were never properly cleared. This affects not only artists, record labels, and production studios, but also companies using third-party content for events, product launches, or social media.

Collaborations can also lead to disputes. Joint projects often suffer from vague agreements around responsibilities, deadlines, and creative control. For example, a brand working with an influencer may expect professional-quality content within a short timeframe, while the influencer assumes full editorial freedom. Misaligned expectations quickly turn into conflict.

Entertainment-specific compensation structures add another layer of complexity. Disputes may arise over royalties, revenue shares, or the scope of buyout agreements. These arrangements can sometimes be difficult to interpret or are insufficiently documented – especially when a project involves multiple contributors across jurisdictions.

Event planning also carries legal risk. A company hiring a performer or content creator for a live event must consider cancellation terms, liability, and technical requirements.

When these conflicts arise, court proceedings may not be the best option. Rather, arbitration represents an efficient alternative that players in the entertainment industry should consider, for the reasons explained below. 

2. Arbitration Can Be a Better Fit for Entertainment Disputes

Creative projects are fast-paced, often international, and involve sensitive reputational issues. Arbitration offers an efficient alternative to court litigation to solve entertainment-related disputes. 

Party autonomy. Parties can choose the applicable law, the language of the proceedings, the seat of the arbitration, and even procedural standards. In some cases, parties may opt to resolve disputes not under a specific national law but based on general principles or industry practice, or even on equity. 

Specialized expertise. Parties can select arbitrators with a background in media, intellectual property, or entertainment law. This is especially valuable when contracts involve complex licensing structures, royalty agreements, or multi-party productions. Institutions such as the World Intellectual Property Organization (WIPO) offer arbitration rules specifically designed for disputes involving intellectual property and creative content.

Flexibility. Arbitration rules allow the procedure to be tailored to the needs of the parties. This gives both sides more control and helps avoid unnecessary delays.

Confidentiality. Arbitration is private, and institutional rules usually support strict confidentiality. Still, it is important to ensure this is explicitly agreed or covered by the applicable rules. For both SMEs and entertainment professionals, the ability to handle a dispute discreetly can be crucial.

Fast resolution. Arbitral procedures are usually fasts and the main arbitration rules provide for an expedited procedure depending on the value of the dispute, according to which the final award must be rendered within 6 months. The main arbitration rules also provide for emergency arbitration, granting parties the possibility to ask for interim measures prior to the constitution of the arbitral tribunal. 

Costs and efficiency. Because the cornerstone of arbitration is parties’ autonomy, parties are free to reach an agreement regarding the allocation of the costs of the arbitration. Parties can typically agree that both parties bear their own legal costs, so to avoid additional costs in the event of an adverse outcome. Failing an agreement between the parties, the arbitral tribunal enjoys broad discretion and full recoverability of the winning party’s costs in the arbitration is not uncommon. 

Electronic format. Submissions are filed electronically, and hearings may be held by video conference. In general, arbitration is usually more digital and may also be seen as more sustainable from that point of view. 

Enforceability. Under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (NYC) arbitral awards can be recognized and enforced in over 170 countries. This makes arbitration a particularly attractive choice for cross-border projects, where enforceability is essential. 

Last but not least, Swiss arbitration law endorses the parties’ autonomy as the cornerstone of arbitration and limits the intervention of state courts, providing for a particularly arbitration-friendly legal framework, which is traditionally considered at the forefront of international arbitration worldwide. 

In conclusion, arbitration offers a structured, flexible, and internationally effective way to manage conflicts in the entertainment industry.

It is, therefore, important to accurately draft and review the relevant contractual provisions, including the dispute resolution clause. 

Setting out the applicable rules, venue, and procedural details from the outset helps ensure clarity and reduces uncertainty. Whether in a sponsorship agreement, a music licensing deal, a co-production, an influencer partnership or a digital content collaboration, having the right framework in place provides legal security on all sides.

Our team at Bratschi can assist with both contract design and dispute resolution in entertainment-related matters.