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Developers of video games, CD-ROMs, or other multimedia products that incorporate the images and likenesses of celebrities should take note of the increased incidence of entertainers, athletes and other notable personalities who appear on police blotters and scandal sheets. The ability to quickly disassociate a multimedia product from a celebrity should be considered by developers of such products before they enter into any arrangement to license the image or likeness of a celebrity. One possibility is a “morals clause,” pursuant to which a developer may be able to terminate its obligation to make any fixed payments to include the celebrity’s image or likeness in its products, or its obligations to make any fixed payments, in the event the celebrity commits an immoral act or otherwise engages in acts or omissions that the developer believes will diminish the value of the celebrity association. SAMPLE CLAUSE Right to Terminate — Morals Clause.Developer shall have the right, upon written notice, and without limiting its other rights or remedies hereunder at law or in equity, to terminate its obligations under this Agreement immediately, including any fixed royalty payments, without incurring any liability at law or in equity, if Celebrity has committed any act involving moral turpitude, or has become involved in any situation or occurrence including, but not limited to, the use of or other association with drugs or alcohol, or otherwise tending to bring himself into public disrepute, contempt, scandal, or ridicule, or tending to shock, insult, or offend the people of this nation or any class or group thereof, or reflecting unfavorably upon Developer’s reputation or products. Developer’s decision on all matters arising under this paragraph shall be conclusive. Robert Freeman is a senior associate in the New York office of Brown Raysman Millstein Felder & Steiner ( www.brownraysman.com). For information on subscribing to the newsletter “e-commerce Law & Strategy,” please click here).

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