Multi-Channel Networks often promise creators revenue optimization, brand deals, and production support. When MCNs fail to deliver, withhold payments, or trap creators in unfair contracts, a demand letter can recover owed revenue and secure channel release.
Common MCN Contract Disputes
Dispute Type
MCN Conduct
Creator Impact
Revenue Withholding
Delayed or missing payments, hidden deductions
Lost income, cash flow disruption
Unfulfilled Promises
No brand deals, production support, or channel growth
MCNs handle hundreds of creators and prioritize those who escalate.
Formal legal notice triggers internal review by compliance teams.
Creates documentation for arbitration or court if needed.
Demonstrates you understand your rights and will enforce them.
Realistic Outcomes
Back payments for withheld or miscalculated revenue shares.
Early release from unfair or expired contracts.
Channel transfer within YouTube's MCN system.
Settlement for material breaches without litigation.
California Talent Agencies Act: If your MCN procured brand deals or employment without a talent agency license, the entire contract may be voidable. You could recover all commissions paid.
Legal Framework for MCN Disputes
Contract Law Basics
MCN agreements are standard commercial contracts subject to breach, unconscionability, and misrepresentation claims.
One-sided terms may be unenforceable, especially for creators who signed as minors or without legal review.
Material breach by the MCN entitles creators to terminate and seek damages.
California Talent Agencies Act (TAA)
Under Labor Code Section 1700.5, anyone who procures employment must be licensed as a talent agency.
MCNs that promise and deliver brand deals may be acting as unlicensed talent agencies.
Contracts with unlicensed talent agencies are voidable, and creators can recover commissions paid.
Statute of limitations is one year from the date of the last act of procurement.
YouTube Partner Program Terms
YouTube's MCN policies require networks to release channels within 30 days of contract termination.
MCNs cannot claim ownership of channels or content unless explicitly assigned in writing.
Creators can report MCN violations to YouTube Partner Support for intervention.
Arbitration Considerations
Most MCN contracts contain mandatory arbitration clauses (AAA or JAMS).
Arbitration can be expensive, but some clauses require the MCN to pay filing fees.
Small claims court may be available for disputes under $10,000 in many states.
Class action waivers in MCN contracts have faced scrutiny in California.
Leverage point: Many MCNs settle quickly when faced with California TAA claims because a finding of unlicensed agency activity can expose them to liability across all their creator contracts.
Documentation Checklist
Contract Documents
Original MCN agreement and any amendments.
Email confirmations of contract terms or promises.
Recruitment materials, pitch decks, or verbal promises.
Contract termination notices sent or received.
Revenue Records
YouTube Analytics showing views, CPM, and estimated revenue.
MCN payment statements and invoices.
Bank records of actual payments received.
Discrepancy calculations with supporting data.
Performance Evidence
Correspondence about promised brand deals that never materialized.
Evidence of services promised but not delivered (production, promotion, etc.).
Communications showing MCN acknowledged your complaints.
Timeline of your attempts to resolve issues before legal action.
Channel Ownership Proof
Channel creation date and original ownership records.
Content creation evidence (raw footage, scripts, production files).
Subscriber and view growth before MCN association.
Any documentation showing the channel was yours before joining the MCN.
Letter Strategy
Tone & Approach
Professional and firm. Avoid emotional language or accusations.
Focus on specific contractual obligations the MCN failed to meet.
Quantify damages where possible (exact dollar amounts owed).
Reference applicable law without making legal threats you cannot back up.
Deadline: Reasonable timeframe (14-30 days) for response.
Escalation Notice: Arbitration filing, regulatory complaints, or litigation if no response.
Before sending: Screenshot all YouTube Analytics data and download your MCN dashboard information. MCNs have been known to restrict access after receiving demand letters.
California creators: Include a reference to Labor Code Section 1700.5 if the MCN procured or promised to procure brand deals or sponsorships. This creates significant leverage.
Sample MCN Breach Demand Letter
[Date]
Legal Department
[MCN Name]
[Address]
Re: Breach of MCN Agreement - Channel: [Channel Name]
Contract Dated: [Date] / Creator Account: [ID]
Dear Counsel:
I represent [Creator Name], operator of the YouTube channel "[Channel Name]" ([Subscriber Count] subscribers). [Creator] entered an MCN agreement with [MCN Name] on [Contract Date], which provided for a [X]% revenue share in exchange for [stated services].
MATERIAL BREACHES
1. Revenue Withholding: [MCN] has failed to remit $[Amount] in revenue shares for the period [Date Range]. YouTube Analytics shows gross revenue of $[Amount], of which [Creator]'s [X]% share equals $[Amount]. Only $[Amount] has been paid.
2. Unfulfilled Service Promises: The agreement and recruitment materials promised [specific services: brand deal procurement, production support, channel optimization]. To date, [MCN] has provided none of these services despite [Creator]'s repeated requests documented in emails dated [Dates].
3. Contract Extension Dispute: [MCN] claims the contract auto-renewed on [Date], but proper notice was not provided as required by Section [X] of the agreement. [Creator] terminated in writing on [Date].
LEGAL CONCERNS
We note that [MCN]'s procurement of brand deals may constitute talent agency activity requiring licensure under California Labor Code Section 1700.5. [MCN] does not appear on the California Labor Commissioner's list of licensed talent agencies. Contracts with unlicensed agencies are voidable, and commissions paid are recoverable.
DEMANDS
Within fourteen (14) days of this letter, we require:
1. Payment of $[Amount] representing all unpaid revenue shares with detailed accounting;
2. Immediate release of the channel "[Channel Name]" from [MCN]'s YouTube network;
3. Written confirmation that the contract is terminated and [Creator] has no further obligations;
4. Return of any content, assets, or materials belonging to [Creator].
If these demands are not met, [Creator] will pursue arbitration under the agreement, file a petition with the California Labor Commissioner regarding unlicensed talent agency activity, and report the channel holding violation to YouTube Partner Support.
Contact owner@terms.law to discuss resolution.
Sincerely,
Sergei Tokmakov
Attorney for [Creator Name]
If the MCN is based in California or does substantial business there, California law may apply regardless of your location. Many MCNs are California companies. Consult with an attorney about choice of law provisions in your contract.
Review your contract for provisions about chargebacks, content ID disputes, or advances. Request detailed accounting for any amounts they claim you owe. If the claims are illegitimate, address them directly in your letter and dispute specific line items.
Attorney Services & Contact
MCN Contract Dispute Representation
I represent YouTube creators in disputes with Multi-Channel Networks, including revenue recovery, contract termination, channel release, and California Talent Agencies Act claims.
Email owner@terms.law or schedule a paid strategy session.