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Continuing To Use a Model In Advertising After Expiration of the Original License May Cost Millions
The cost of paying for forgiveness can be millions of dollars far more than the cost of the original license. In Olive v. General Nutrition Centers, one advertiser just learned this the hard way. GNC’s ad agency hired a model for a photo shoot at a cost of $4,800, which included one year of usage. The ad agency also negotiated an option for an additional year at the same price. GNC precipitously fired the ad agency (when the partners in the agency divorced, but that’s another story) and moved its advertising in-house. Unfortunately, that did not include establishing procedures for monitoring usage rights.
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