Even if you are a Japanese artist or creator who is confident in reading contracts and understanding English, the U.S. entertainment industry has many unique rules and customs. Knowing these can make a significant difference. Here are some points that Japanese creators often overlook.
The Difference Between Japanese and American Contract Culture
In Japan, a contract is often seen as a document to “confirm mutual understanding,” where trust and the relationship take priority over every detail. In the United States, however, the contract is everything. Verbal promises (“I said / you said”) generally have no legal weight. Once you sign, you are bound by the written terms. The mindset of “Let’s sign first and adjust later” does not work in America.
1. U.S. Unions Are Completely Different from Japanese Labor Unions
In the American entertainment industry — especially in California — powerful labor unions (Unions) dominate. Actors and voice actors belong to SAG-AFTRA, writers to the WGA, musicians to the AFM, and crew members (camera, lighting, etc.) to IATSE. These unions are far stronger than Japanese unions. If you work on a union-covered project, you must follow their strict rules regarding minimum pay, working hours, breaks, and overtime — even as a Japanese national. Violating these rules can result in heavy penalties for the production company. Importantly, a Union Consultation Letter or Advisory Opinion is often required when applying for an artist visa. In other words, the Union serves as both a gatekeeper and protector.
2. Three Critical Points to Watch in Contracts
a. Copyright Ownership – “Work for Hire”
In the U.S., the rules for “Work for Hire” differ significantly depending on your relationship with the client.
- If you are classified as an employee, copyright automatically belongs to the employer (even without explicit wording).
- If you are an independent contractor, copyright usually remains with you unless the contract clearly states it is a Work for Hire and falls into specific categories allowed by law.
Ambiguous contract language can cause you to unintentionally lose your rights.
b. Governing Law and Jurisdiction
Clauses such as “This agreement shall be governed by the laws of the State of California” or “Any dispute shall be resolved in the courts of Los Angeles County” are very common — and very unfavorable for Japanese creators. Litigation in the U.S. is extremely expensive and time-consuming. Always try to negotiate these terms, or at least fully understand the risks before signing.
c. Royalties and Payment Terms
The definition of “sales” makes a huge difference. Is it Gross Revenue or Net Profit? The actual amount you receive can vary by tens of times depending on the definition. Payment timing, reporting obligations, and audit rights should also be clearly defined.
3. Visas Required for Artistic Activities in the U.S.
To work legally as an artist in America, you need an appropriate work visa. The main options are:
- P Visa (Performance Visa)
Sponsored by a U.S. promoter or employer. Suitable for group performances, tours, and events. Requires a consultation letter from the relevant Union. - O-1B Visa (Extraordinary Ability)
For artists with “extraordinary ability.” Requires substantial evidence (awards, media coverage, letters of recommendation) plus an Advisory Opinion from the Union. The bar is high, but it allows more flexible individual activities.
Note on Influencers: Those with large social media followings often cannot use the P Visa (since it is for “performances”) and may struggle to qualify for O-1B. Careful legal planning from the beginning is essential.Contract terms and visa strategy are closely linked. Signing a contract first and thinking about the visa later can make visa approval impossible.
Summary
Even if you can read English contracts, you can still miss major risks without knowledge of U.S. law and industry practices. If you are seriously considering activities in the United States, please consult with us before signing any contracts. We can help you navigate both Japanese and American legal perspectives.
Consultations are available in-person at our Century City office or online. Feel free to reach out.