The Creator of 'The Secret', Rhonda Byrne is being sued for $150 million by a former employee of her Company Prime Time, Drew Heriot. He claims that he co-wrote the screenplay on which the book is based and that when Rhonda first had her idea and pulled him into the project, she promised him a percentage of the profits.
Mmmm. I can totally believe that. I have seen this happen before, and I myself have a tendency towards generosity in these situations, when I should pull back and stake my full claim around an idea. Why do we do this? Probably because we don't stand in our own power enough and think that the only way we'll get traction on a project is to make people invested. As women, we're also quite maternal and think that if we're going to benefit greatly from an idea's outcome, then everyone involved should benefit like us too.
So let's assume (sorry Rhonda) that she did in fact promise a share of the profits. What did she do wrong that has brought about this legal issue? She didn't put the necessary agreement together that would have clearly outlined what each parties entitlements would be before moving forward with the project. Now she is faced with being sued for half of the estimated earnings of 'The Secret' book when she may have only ever intended to give this guy 2%. She should have backed herself, from the beginning and acted like this was going to be as big as it has become. If she had the benefit of hindsight (wouldn't it be nice!) then there would have been no way known that she would have left a detail like this hanging out there.
Now let's assume that she didn't in fact promise this guy any profits. What could she have done to prevent this lawsuit? I would think that an Employment Agreement that stated that her Company would own the Copyright but made a provision for a writers royalty would have done the trick!
Lets face it - when you become this hugely successful, there is a tendency to be seen by people from your past (or I guess, even your present) to delude themselves into thinking that they were an integral part of the wheel that rode you to riches. And if there is even a modicum of possibility that they have a claim, they'll go for it because you are quite likely to settle, rather than spend a fortune in legal fees defending the action. The only deterrent is a signed Agreement stating each parties rights and obligations - so the lesson here? Think with the end in mind and make sure you take care of this aspect of your business!