Artificial Misconduct: Morals Clauses In The Age Of AI

One of the key considerations when engaging with talent (a celebrity, actor, singer, or other public figure) is that the value of the association between a company or person and that talent is wholly dependent on the talent's reputation. Of course, when entering into an agreement, one's reputation can be vetted and appear intact. It is what might happen later, over the course of the relationship, that can be a cause for concern. To shield against that risk, talent agreements of all kinds (endorsement, co-branding, license, and sponsorship agreements), especially since the MeToo era, will typically include a "Morals" or "Conduct" clause (the "Morals Clause").

The Morals Clause's purpose is to provide an express remedy against talent whose conduct adversely affects the association with the relevant talent and, accordingly, the potential success of a motion picture, television series, marketing campaign, or product (thus jeopardizing the value of the accompanying