how do you use the most vapor Nations Clauses in your contracts to not get screwed over or better yet to negotiate a better deal [Music] welcome to my third series of videos focusing on common causes you will likely come across in the entertainment industry no matter what your title is in this first part of the series I'd like to talk about the most Favored Nations clause and what it actually means [Music] most Favored Nations causes can be found in many entertainment contracts from music to film at its core this Clause basically ensures that you and everyone else in a specified group will get the same deal terms if someone else gets better deal terms than you then your terms must be improved to match however the cause is not a guarantee and it is not required meaning they are negotiable the negotiations on a most favored nation's cause may also include specifics on what part of the contract is on that basis meaning will the cause govern your compensation your perks your credits let's say you're a background actor in a phone your contract will most likely not include deal terms on a most Favored Nations basis with the two laid actors but it may prevent Bride for all the background actors as a group this is because the deal terms that lead actors and mega Stars can negotiate for are likely not included for every single actor in the film this would result in an insane budget for the production but if you could definitely negotiate to be on a most Favored Nations basis with the other background actors or maybe for actors playing smaller roles that would be fantastic an advantage of this Clause can also come from the other side of the coin if you're a top talent but are passionate about this project and want it to move forward you may be willing to take a pay cut to make it happen having your deal be on a most favorable Nations basis is a way to ensure that this pay cut won't affect your quote on other projects and is easily explainable and presented as a one-time thing for a passion project if you're a producer employing a most favorite nation's Clause means you might be able to get better Talent than you would otherwise be able to afford on a limited budget it's simply by promising not to give anyone in one group substantially better treatment than anyone else in that group the favor nation's cause can be a useful device for both parties to a contract though it comes weighted with risks make sure you have an experienced entertainment attorney review your contract to help you get the best deal you can no matter what side of the contract you're on [Music] thank you