Hollywood studios are adding morality clauses to contracts in support of the hashtag “MeToo” due to the growing list of alleged sexual abusers within the entertainment industry, according to a report Wednesday.
Studios are trying to circumvent the multitude of sexual predators by using morality clauses to protect studios whose projects worth millions get smudged overnight from victims’ accusations, reported the New York Post.
This clause also protects distributors, such as Netflix, whose company lost $39 million due to “the societal reset around sexual harassment,” said Netflix’s Chief Finance Officer David Wells. Both former Netflix stars Kevin Spacey from “House of Cards” and Danny Masterson from “The Ranch” are accused of sexual misconduct.
Due to not including a morality contract, Spacey will continue to receive paychecks for the rest of season six of “House of Cards” despite being fired for sexual abuse, added the Hollywood Reporter.
“All you have to do is define what will trigger the clause, who determines if it has been triggered and what happens as a result,” said Sky Moore, an entertainment lawyer and a partner at Greenberg Glusker.
The first Hollywood morality clause dates back to 1921 after a woman died from injuries at a party hosted by an actor from Paramount Pictures.
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