Tyler Chou, founder and CEO of Tyler Chou Law for Creators, is leveraging her 16-year Hollywood legal career to champion the rights of online content creators.

Her resume includes stints at major players like Disney, Skydance, and Buzzfeed, where she headed the creators’ program. She’s also been on the A-list talent teams of Tom Hanks and Marisa Tomei, as well as high-profile directors and producers like Robert Rodriguez and Ryan Murphy.

Tyler’s pivot to focusing on creators came after what she describes as a “midlife crisis.” Despite her successful career, she felt a pull towards her creative ambitions. 

“For almost 18 years, I was helping creatives achieve their visions and dreams, and I kind of put mine aside,” she explains.

This initially led Tyler to start a YouTube channel as a side project. Her channel gained traction unexpectedly when she posted videos analyzing a controversy involving the popular YouTube group The Try Guys.

This experience deepened Tyler’s understanding of the creator economy. Her law firm for creators emerged during the Hollywood strikes of 2023 when she saw an opportunity after being laid off from her position at a private equity fund. 

“I decided to start my own law firm. What better time than to try now,” Tyler recounts.

Her firm has since expanded into multiple verticals. In addition to legal services, Tyler offers creator management, fractional COO work for large creators, speaking engagements, and advisory services for private equity funds looking to invest in the creator space. 

Her expertise has led to her giving keynotes at VidCon, CreatorFest, and VidSummit this year, and she was one of only two speakers at Sony’s private-invite-only Kando event. 

Tyler has recently been hired to prepare an expert witness opinion report on the lifetime earning potential of a young creator whose life was cut short during a motor vehicle accident in Tennessee. As creators can make up to seven or eight figures in their lifetimes, this is an important report for the industry.

The industry veteran is also a formidable advocate for creator rights in an industry where predatory deals and IP theft are commonplace.

“I have so many creators coming to me telling me about how their IP is getting stolen or six-figure brand deals not getting paid,” Tyler says, highlighting the need for her services.

She has witnessed firsthand the transformation of social media influencers into full-fledged media companies and is determined to equip them with the legal tools they need to thrive.

Tyler dives into the industry’s legal intricacies, discussing everything from contract pitfalls and IP protection to emerging trends in creator-brand agreements and the future of digital content ownership.

Legal Challenges in the Maturing Creator Economy

Tyler identifies the top three legal challenges, or pain points, facing content creators: not getting paid, YouTube channel issues, and stolen IP.

The progress of platforms and influencer marketing has shifted the issues creators encounter.

“We’re seeing the maturing of many creators right now,” Tyler notes. “Many creators started during the pandemic, and they’re five years in, so many are starting to get burnt out. Solely being reliant on AdSense and brand deals is a recipe for burnout in my mind.”

Tyler advocates for creators to diversify their revenue streams and think of themselves as businesses. “Your YouTube channel is not your business. It’s the marketing arm of your business… you are the business, you are the media company,” she points out.

The entrepreneur sees opportunities for creators to build more valuable enterprises as the industry moves forward. 

“I’m seeing a maturing of the space where people are realizing, ‘Okay, I want to exit one day,’” Tyler says. However, she notes that many creators aren’t yet prepared for acquisition.

Tyler’s work focuses on helping creators build sustainable businesses and protect their intellectual property. She highlights trademarks and proper business structures, especially for those aiming for eventual exits or acquisitions.

“We’re seeing a growing pain period,” Tyler observes, as the industry adjusts to changing market conditions and creators seek more stable business models.

Legal Foundations for Creator Businesses

Tyler believes creators should establish formal legal structures around their personal brands and content creation businesses.

“If you own any assets, like a home or 401k from your last job or anything that can be touched in a litigation, you should have an LLC,” Tyler advises. She explains that an LLC can protect personal assets in the event of a lawsuit.

Tyler recommends several basic legal and financial steps for creators:

1. Form an LLC
2. Obtain general liability insurance
3. Secure contracts for contractors and employees
4. Register trademarks
5. Pay taxes regularly

“The answer is sooner than creators think,” Tyler says regarding when to prioritize these steps. She suggests monetized YouTubers earning around $2,000 a year should consider setting up an LLC and obtaining general liability insurance.

For creators producing reaction videos or reviews, Tyler stresses the importance of media insurance covering defamation. She cites the Logan Paul and Coffeezilla situation as an example of the potential pitfalls of inadequate coverage.

Tyler also highlights the growing scrutiny from tax authorities. “The IRS is starting to realize that this is an economy, a space where the creators are making a lot of money, and they’re like, ‘We haven’t seen taxes coming in from the creators,’” she notes.

As for her predictions, Tyler sees the creator economy as a democratizing force in media. “It’s the best level playing field we can have,” she says, predicting that future Academy Award-winning directors may get their start on platforms like YouTube.  

“You no longer have to wait for a studio head to deem your story worthy of being told,” Tyler notes. “If you can write your story, record the video, and put it out on YouTube, millions of people can see it. That is the American Dream.”

Contract Pitfalls for Creators

Based on her insights from extensive experience representing creators in brand deals and other agreements, Tyler reveals common mistakes creators make in contract negotiations and offers advice on avoiding pitfalls.

A frequent issue she observes is creators undervaluing their work. “Creators don’t ask for enough money,” she notes. “Usually, when I step into a negotiation for a client, it’s two or four times that original number.”

Tyler also cautions creators about deals with companies offering loans or revenue-sharing arrangements. “There are these predatory companies out here just screwing creators,” she says, describing instances where clients faced onerous terms or unfulfilled promises.

“I recently talked to a new client who signed a deal, and they promised the back catalog they would only get like 15% taken, and they ended up taking about 85% of their AdSense,” Tyler reveals.  

Tyler outlines several key contractual protections creators should seek:

Cap on Liability

Tyler warns, “If you’re getting paid $5,000 for something and you get sued… if you don’t have a cap on liability, you do not want to be responsible for six figures of legal fees, that’s the biggest pitfall.” This protection limits a creator’s financial exposure in case of legal issues.

Mutual Indemnity

This clause protects the creator and the brand, not just the brand. It’s crucial for balanced risk distribution in the contract.

Mutual Morals Clause

This provision allows creators to exit deals if brands face scandals. It protects creators from being associated with brands that may damage their reputations.

Kill Fee

A kill fee protects creators if brands terminate projects after work is completed. This ensures creators are compensated for their time and effort, even if the final product isn’t used.

Emerging Trends in Creator-Brand Agreements

Tyler identifies a shift in the structure of legal agreements between creators and brands, with equity becoming an increasingly prominent feature.

“Equity is everywhere,” she observes, noting that she frequently receives inquiries about equity-based deals.

This trend reflects a growing sophistication among creators looking beyond immediate cash payments. “I think many creators are starting to wake up to the fact that they should be taking equity and diversifying their portfolio,” Tyler explains. 

She advises that the ideal arrangement often combines both cash and equity.

Offering equity can be an attractive option for brands. Equity is free, Tyler notes, though she cautions that creators should still negotiate for cash alongside equity stakes. 

This approach is particularly relevant for top-tier creators who may not need immediate cash but are interested in creating long-term value.

Tyler also highlights an emerging focus on exit strategies among creators. “How do I exit? How do I be attractive for an acquisition one day?” Tyler believes those questions are becoming more common among larger creators looking to build sustainable businesses.

Tyler is currently brokering the sale of the YouTube channel for one of her big creator clients with private equity funds, and the sale will likely be in the eight figures. “Creators are big and profitable businesses; they are no longer just kids making videos,” she says.

However, the law practitioner acknowledges that these trends may not apply to smaller creators yet. “The people I interact with and my clients tend to be bigger creators,” she says, suggesting that they will likely adopt these strategies as smaller creators grow.

Overall, Tyler sees a future where creators prioritize ownership—both equity in the brands they work with and their intellectual property.

Intellectual Property: The Cornerstone of Creator Economy Law

Tyler stresses the significance of IP law for young attorneys aiming to enter the creator economy space. 

“Intellectual property. They should be very good at copyright and trademark,” Tyler advises, referring to the growing demand for expertise in these areas.

According to Tyler, IP is fundamental to the entertainment industry and, by extension, the creator economy. 

“An entertainment attorney is an IP attorney because we’re trading in IP,” she explains. This encompasses various activities, from negotiating option purchase agreements for screenplays or books to securing movie actors’ rights by capturing their results and proceeds.

Tyler also touches on IP management for creators. She advises creators to capture their audience’s email addresses, viewing this data as valuable IP data. 

She believes this helps creators build a direct relationship with their audience and adds value to their brand when considering potential future acquisitions or product launches. 

Creators should be building their portfolio of IP, including videos, trademarks, copyrights, logos, slogans, branding, merchandise designs, course materials, e-books, apps, games, software, and, most importantly, licensing agreements with production companies, studios, or networks.

Furthermore, the seasoned attorney recommends aspiring creator economy lawyers have a strong foundation in IP law, supplemented by knowledge of employment law. 

Tyler notes that these two areas are crucial for in-house legal teams at companies in the space, making them valuable skills for attorneys looking to specialize in this growing field.