This article is part of a series monitoring developments with regard to California Assembly Bill 5 and its impact on the entertainment industry. See our first post here.

The Talking Heads repeat the words, “same as it ever was” in their famous song, “Once in a Lifetime.” Echoing that sentiment, we have learned that all the major studios (and some of the streaming platforms) have agreed to continue to respect the use of loan-out companies after January 1, 2020, the effective date of new California Assembly Bill 5 (AB5). Consensus in the legal community is one of relief that the status quo will remain in place and loan-out viability will continue in accordance with past custom and practice. This outcome is consistent with the position of the various guilds, which issued a rare joint pronouncement in September solidifying their stance that loan-outs will not be affected by AB5.

As a reminder, AB5 is the newly signed law that redefines the distinction between an employee and an independent contractor. With the leadership of the major studios and streamers, we are expecting that other studios and production companies will follow the same policy, and business will continue as usual. Or will be the “same as it ever was.”

Photo of Lee S. Brenner Lee S. Brenner

Lee Brenner, chair of Venable’s Entertainment and Media Litigation Group, is a trial attorney and business litigator. With numerous published decisions throughout his career, Lee has deep experience in the media and entertainment industry, particularly in the areas of defamation, copyright law, idea…

Lee Brenner, chair of Venable’s Entertainment and Media Litigation Group, is a trial attorney and business litigator. With numerous published decisions throughout his career, Lee has deep experience in the media and entertainment industry, particularly in the areas of defamation, copyright law, idea theft, credit disputes, privacy, intellectual property, and right of publicity. A recognized leader among his peers, Lee is also co-editor of Communications Lawyer, the American Bar Association’s publication on media and First Amendment law.

Lee’s legal achievements have been recognized by numerous leading industry associations and publications. He was named a Leader in Law nominee by the Los Angeles Business Journal; an Intellectual Property Trailblazer by the National Law Journal; and a Local Litigation Star by Benchmark Litigation. Lee has also been listed in Chambers USA, in The Best Lawyers in America, as a Top Intellectual Property Lawyer in the Daily Journal, and as 2020’s Entertainment Lawyer of the Year by the Century City Bar Association.