Legal Question in Entertainment Law in New York

Re: GoKart Racer

The actual compensation for that can take many forms, the most common of which is a royalty for sales of the endorsed product. However, lump sums are often heard of as well. There is a sliding scale to each concession you make. For example, the longer the term or the greater the scope of the company's permitted display and use of such display (e.g., to the extent they may use actual footage of your son's car for television or internet broadcast advertisements versus only still photographs, or merely having their logo displayed on the car without reproduction rights), the more compensation you should receive. Depending on your son's marketplace recognition and the sophistication of the parties, the agreement may be more detailed on what the company can and cannot use, in what mediums, and for how long.

If you require any assistance or require the review of such contracts, please feel free to contact us.

Best of Luck,

Kaiser

Re: GoKart Racer

It is generally desirable to have a sponsorship agreement executed that spells out how your son will be compensated in return for agreeing to display the corporate insignia/logos on his vehicle and otherwise to promote the sponsors' trademarks. Ask the businesses that approached you to send you a draft of their sponsorship agreement and take it to an entertainment attorney to review.