How A Scrappy Entrepreneur Walked Into A Boardroom Of Sharks… And Walked Out With A Big Fat Payday
From The Desk Of Victor Phala
RE: Buried Deep In Their “Friendly” Contract Was...
A Ticking Legal TIMEBOMB...
... That Would Have Stolen His Life’s Work—Here’s How We Defused It In Real Time:
Client walks into my office like a man on the brink of a champagne shower.
"Big company wants to partner with me,” he says…
“...They’ll bring capital, scale the product, and make me filthy rich.
“Can I see the contract?” I asked.
He slides it across my desk.
I scanned it and I made....
A Jaw-Dropping
Discorvery!
Buried in clause 7:
In the occurrence of any juridical contention or adversarial proceeding, all proprietary intellectual entitlements shall revert and be reassigned to Party B (them) irrespective of prior assignments or understandings
And in clause 11:
Termination requires 90 days notice, however, such cessation shall in no manner abrogate, diminish, or impair extant or continuing licensure prerogatives previously conferred."
Translation:
They were planning to own his product, use his brand, and keep licensing his work even if they kicked him out.
He was about to sign his entire business away.
And this is a common tactic in high-stakes legal warfare:
Wrap The Bomb
As A Gift!
It’s one I’ve seen used too many times.
And you don't have to step in the boadroom to witness it too...
Just ask Emtee... The South African hip-hop phenom.
Chart-topper. Award-winner. And the voice of young generation.
He signed with Ambitiouz Entertainment.
And thought he was getting a launchpad.
What he got was a trapdoor.
➵ They owned his masters.
➵ Controlled his music.
➵ Dragged his name through contracts and courts.
When he left, they kept EVERYTHING.
His legacy. His records. And his money.
They fed him fame and starved him of freedom.
These are traps you need to be aware of before signing a contract.
When client handed that agreement, it looked legit with fancy lawyer language...
The Kind of languege designed to...
Lull You Into A
False Sense of Safety
They’ll say “partner”—but mean “hostile takeover with a hug.”
I ripped that contract apart.
Redrafted it from the ground up. Every clause rewritten. Every loophole closed and renegotiated.
Now he owns his product, controls the deal—and still secured the bag.
You can win in these rooms too.
But you better not walk in unarmed, or you’ll get eaten ALIVE.
Until next time,
– Victor, LLB