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It can sometimes be tricky pinning down exactly what the concern is when discussing risk on Film and TV Productions. While it can be super handy to think "what would be the complaint here", it's often a bit more subtle than that. Sometimes the commercial risk to the production is the thing to avoid - even if the situation seems low risk
What actually is the difference between Legal & Commercial Risk?
What actually is the difference between Legal & Commercial Risk?
Legal risk is about law, liability and enforceability.
Commercial risk is about money, relationships, reputation and business consequences.
A really good understanding of the Production companies preferences along with a bullet proof knowledge of the distributors deliverables is what is needed to help figure out which risk is "legal" and which is "commercial". Once you have that articulated clearly (pun intended) it's much easier to find a solution.
Legal Risk
Legal Risk
These are the situations where there is a real risk that something breaches a law. That's things like
Copyright Infringement - Have you used a creative work without permission?
Defamation or Libel - have you said
Regulatory breach - have you glamourised children eating sweets?
Contract violation - have you presented a prop placed item in a way specifically detailed against in a contract
Commercial Risk
Commercial Risk
This risk is something that causes production company harm - financially or reputationally. It usually covers things like -
Distributor/Platform refusal - Are there item in your edit that don't have verified licences?
Insurance problems - Have the underwriters objected to a hero company name as the research isn't robust enough?
Reputation damage - Have prop placed iPhones been used in contravention of the agreement?
Delays - Have uncleared items been dressed in and need VFX fixes?
Have mistaks been made with uncleared items that push the schedule and the budget?
Case Studies
Case Studies
Background Artwork Not Cleared
Background Artwork Not Cleared
Legal Risk
Legal Risk
Possible copyright infringement claim
Potential damages
Injunction risk
Commercial Risk:
Commercial Risk:
E&O insurer refuses coverage
Distributor won’t accept delivery / requests removal or blurring
Costly re-edit / Release delay
Even if no one sues, the commercial damage may already be done.
Case Studies
Case Studies
A Branded Product in a Scene
A Branded Product in a Scene
Legal Risk
Legal Risk
Usually low if incidental and no trademark misuse
A conflict with the cast member's contractural endorsements outside the production
Commercial Risk:
Commercial Risk:
Negative portrayal concerns and the Brand objects
Sales territory complications
A conflict with the cast member's contractural endorsements outside the production
In Summary
In Summary
In clearance you will often be juggling both but usually commercial risk crops up more than legal risk.
A lawyer may say “It’s low risk.” But the distributor may say “We won’t take it like that.” And the insurer may say “We won’t cover it.”
Which means it can't safely go on set
More to Read on Clearance Risk
More to Read on Clearance Risk
These links and suggestion may change over time. Always recheck the copyright status with your lawyer or clearance person. This page was last updated in Feb 2026
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