Hollywood Writers: No Risk, No Royalties

Posted by Pheisty in November 11th, 2007

This writers strike has me very irritated, but it isn’t because I’m missing any TV shows. I don’t watch television. I’m angry at the writers, and the millions of people who believe that these entitlement-thinking individuals actually deserve what they are demanding, while others who depend on the production of these shows for jobs are losing their livelihood.

Let me explain my reasoning…

If I am employed by a company as an inventor, and my job is to dream up and design new products while getting paid by my employer to do so, I don’t assume any risk. My employer assumes all risk by investing in the company, and by assuming that I will create inventions that will make them money. They pay all of the necessary taxes to operate the business, pay for the patents for my inventions, and have to abide by industry rules and regulations according to the law. My employer assumes any and all legal liability for the company, which also is a huge risk. Because of this, I am owed nothing so far as profits are concerned, which my employer enjoys on account of my inventions. Since I didn’t assume any risk, and was getting paid for the job of inventing products with the company, I’m not owed any of the profits. Not a cent.

Now let’s turn the tables. If I am an independent inventor, and am not being paid by a company to invent products, I immediately assume all risk. I must pay for the patents on my inventions, pay for the marketing of my products, assume the legal risk for them, and attempt to find someone to buy them. When I find a person or company who wishes to purchase my products, I will more than likely get a one-time payment for the purchase of the invention, and will write into the purchasing contract the percentage of all sales as royalties for my intellectual property. Many inventors simply sell their product outright, without a contract that would include royalties off of future sales, but when you’re independent, you have the choice. You have assumed all risk.

Writers are no different than inventors. The writers who are currently on strike are (were) employed to write material. They have assumed no risk. They are paid to come to work every day and invent stories. Their inventions (the storylines) are designed through their employment, and under no assumption of economic loss or gain. If the writers were independent, they could demand a percentage of sales when selling their work.

So why aren’t the writers independent?

Because they don’t want to assume any risk. They want to be promised a paycheck every day, and they want the benefits that being gainfully employed offers them. I don’t blame the writers for wanting a steady income and benefits, but they need to understand that without assuming risk of selling their own work outright, they don’t deserve the profits gained from their work. These writers deserve no more royalties for their writing than a company’s paid widget inventor deserves royalties from the company’s sales of their widget.

When no risk is assumed, no royalties should be paid.

If these writers truly want a bigger piece of the pie, maybe they should consider taking the risk of becoming independent, where they aren’t promised a steady income, but trade off that guaranteed income for the opportunity to dictate their own pricing and have the opportunity to get a piece of the “profit pie”.

America is deeply entrenched in an entitlement culture. This culture believes that because certain individuals are becoming very wealthy, everyone below them should get a piece of the pie, as well. People expect extra from their wealthy employers simply because they are wealthy, and this is wrong. Nothing extra should be gained by employees, because they assume no risk at all.

Making money is a gamble. Every time a business owner opens their doors, they lay everything on the line. They invest their money, knowing that they could either succeed and make more money, or fail miserably and lose it all. When this risk isn’t assumed, the entitlement disappears. And so it is with the WGA.

So don’t listen to the simple-minded talk about this issue. Think a little deeper, beyond your own jealousy for those who have more than you, and your desire for “The Office” or “Desperate Housewives” to begin making new episodes. Also remember that other people whose livelihood depends on the production of these shows, are losing out completely, by no fault of their own. Think about what’s right and what’s wrong, and you just may find, like I have, that the writers’ strike is nothing short of immoral. It’s not about the amount of money that the networks are making from these shows, it’s all about the risk.

Cross-posted at Pheistyblog

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