Jul 07, 2025
Intellectual property (IP) is the lifeblood of the entertainment industry. In Hollywood, where creative content drives enormous commercial value, protecting IP rights is not just essential, it is fundamental to survival. Yet, despite clear contractual obligations, infringements still occur, leaving rights holders unpaid and forced to navigate complex legal landscapes.
At Payfor, we are proud to support clients in the entertainment sector by recovering six-figure sums when IP rights are violated. This case study demonstrates how our expertise in cross-border debt recovery, legal escalation, and negotiation helped one such client achieve a successful outcome.
Our client, a prominent independent production company based in Los Angeles, had entered into a licensing agreement with an international media distributor. The agreement granted the distributor the rights to use original film content across multiple streaming platforms in Europe and Asia.
Under the terms of the licensing deal, the distributor was required to pay royalties and licensing fees amounting to over $850,000 within a fixed payment schedule. However, once the content had been distributed and monetised, the payments stalled. Despite repeated requests, only partial payments were made, and ultimately the distributor ceased communication entirely.
The complexities of this case were numerous. The licensing agreement was governed by Californian law, but the distributor was headquartered in Singapore, with content actively being broadcast in multiple countries. Jurisdictional challenges, differing IP enforcement standards, and the risk of reputational damage made the situation extremely delicate.
Our client had already expended time and resources attempting to engage the distributor directly. With the balance unpaid and the prospect of litigation looming, Payfor was brought in to take over the matter.
From the outset, our team conducted a detailed review of the licensing agreement, including payment schedules, breach clauses, and governing law provisions. We identified immediate grounds for legal action, including copyright infringement and breach of contract.
Our 30-Day Chase Campaign commenced, combining daily legal-grade emails and phone communications with the distributor. Rather than relying on aggressive posturing, we applied strategic pressure by clearly outlining the legal position, highlighting the potential reputational fallout, and offering the opportunity for "without prejudice" discussions to find a resolution.
Simultaneously, we liaised with an international law firm to prepare for legal escalation should the distributor continue to ignore the matter.
When no satisfactory response was received after the chase period, legal action was initiated in the Californian courts. The prospect of public litigation, coupled with potential injunctions to prevent further use of the IP, quickly shifted the dynamics.
Faced with mounting legal exposure, the distributor re-engaged with our team. Drawing on our negotiation experience and understanding of the entertainment industry, Payfor guided both parties toward a confidential settlement agreement. The client recovered $825,000 in damages and unpaid licensing fees without proceeding to full trial, preserving valuable business relationships and avoiding negative press.
Cases like this demonstrate that successful recovery is rarely about aggression alone. It requires a careful blend of legal expertise, cultural sensitivity, and the ability to apply pressure without destroying potential commercial relationships.
Payfor's team understands the nuances of the entertainment sector and the need for discretion, speed, and commercial realism. Our clients know that when they face unpaid royalties, infringements, or broken licensing agreements, they can rely on us to protect their interests through every stage of recovery.
If the recovery process requires legal escalation, we can introduce you to the most qualified law firms in the relevant jurisdiction, at no initial cost for appraisal. Our team manages the entire process seamlessly, ensuring you remain informed, protected, and positioned for success.
Contact Payfor today to discuss how we can help you recover what you are rightfully owed.
Disclaimer:
This blog post is intended for informational purposes only and should not be construed as legal advice. The information provided in this post is based on general principles and may not apply to specific legal situations. Laws and regulations vary by jurisdiction and can change over time. Readers are advised to seek professional legal counsel before making any decisions based on the information provided in this blog post. Payfor Ltd is not a law firm and does not provide legal services. The company disclaims any liability for actions taken based on the contents of this blog post.
More Blogs & Insights