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Celebrity endorsements: what they are and why they matter
Celebrity endorsement is a key type of brand marketing. But it is often confused with adjacent models. A brand ambassador relationship is typically longer-term and more immersive, with the individual more closely aligned to the brand’s identity. Collaborations usually involve joint creative input, such as co-designed products or collections. Influencers, by contrast, derive their value primarily from their audience reach and engagement rather than broader public profile, and are often engaged on a more transactional, short-form basis.
A celebrity endorsement is different. The celebrity is not necessarily expected to design, create or embed themselves into the brand’s operations. Instead, the celebrity endorses the brand and the value lies in the association between the celebrity and the brand. An iconic example of an endorsement includes Kendall Jenner a highly visible endorser for Calvin Klein. That association, however, carries legal and reputational risk if not carefully controlled.
The IP at the heart of the deal
From an intellectual property perspective, celebrity endorsement contracts are deceptively complex. The most obvious asset is the celebrity’s name, image and likeness (“NIL”) which often extends to include their signature, voice and personal indicia. In the UK, there is no standalone “image right”, so protection is typically achieved through a combination of contractual provisions, along with an array of IP rights covering trade marks, the tort of passing off, and copyright.
Brands will usually seek broad rights to use the celebrity’s NIL across multiple channels, territories and formats. Celebrities, understandably, want control. Over-licensing for the celebrity can dilute personal brand value or create conflicts with other commercial relationships. Under-licensing for the brand may leave it exposed, particularly when campaigns are repurposed across digital platforms or rolled out internationally.
Copyright is another frequent flashpoint. Promotional photographs, video content and advertising copy may involve multiple rights holders, including photographers, agencies and production companies. Without the creators of such content contractually assigning their IP rights to the brands in question , brands can find themselves unable to reuse high-value assets once the initial campaign ends.
Many celebrities have registered trade marks for their name or logo, but others may overlook this. Ideally all relevant trade marks should be in place before an endorsement takes place as this helps avoid issues over the enforcement of the celebrity’s trade mark rights.
Common pitfalls
Disputes often arise when endorsements outlive their welcome. Continued use of imagery after termination, social media posts that remain live, or AI-generated adaptations of a celebrity’s NIL can all trigger claims.
Reputational risk also cuts both ways. A celebrity scandal can damage brand value overnight, while overly restrictive morality clauses can create friction with the celebrity.
For C-suite teams, the key takeaway is that celebrity endorsements are not just marketing exercises. They are IP-heavy transactions that require careful structuring from the outset to protect brand value, flexibility and reputation.
Control without damaging authenticity
The contract should specify in detail the scope of representation. The celebrity’s obligations should be clear with details of what is being endorsed, the number and format of shoots, appearances, interviews, product wear moments, and any social media requirements.
Brands buy association, but the association still needs control. That typically means prior approval of scripts, captions and brand claims, clear guidelines on prohibited topics, and a fast takedown mechanism for content that breaches approvals or law. Many contracts will aim to restrict the celebrity from endorsing competing brand or products during certain periods. However, the more control the brand exercises, however, the less organic the endorsement appears. Brands must balance legal and reputational protection against the commercial value of authenticity.
Some celebrities will also want creative input – perhaps releasing a limited-edition range or a special collection bearing their name. Giving a celebrity this kind of involvement can resonate strongly with their fanbase and boost sales, but brands should ensure that such input operates within defined parameters. A celebrity-led product line that strays too far from the brand’s core identity risks diluting brand equity and confusing consumers.
Over time, an endorsement may start to resemble an ambassador, collaboration or influencer arrangement, especially as social posting, product input and event attendance accumulate. The contract should anticipate that drift and set out what is in scope, what is optional, and what triggers a new agreement.
Reputational risk and exit planning
Celebrity endorsements carry inherent reputational risk. Public figures can become embroiled in scandals, criminal matters, or even unfavourable conduct, which the brand may wish to distance itself from
Brands need appropriate contractual “morality” provisions to enable them to respond promptly. Live content may be pulled immediately, but other campaigns might be slowly wound down. Another consideration concerns what will happen with content and products that are ready to be launched. Suspension and termination rights should be considered. If the launch does not go ahead who will bear the cost of withdrawal and replacement, and any further financial fall out.
If the celebrity’s personal brand forms part of the bargain, they may seek reciprocal exit rights if the company suffers a scandal or adopts messaging that makes the endorsement toxic by association.
For global campaigns, local termination rights can be valuable. Conduct that is controversial in one jurisdiction may be unremarkable in another. The ability to end or adjust the relationship in a specific market, without unravelling the entire deal, gives brands flexibility to respond proportionately.
Exclusivity
If a celebrity endorses hundreds of brands, the value of any single endorsement is diluted. Worse still, an association with a rival or an unfavourable brand can actively damage the partnership. Exclusivity provisions protect against both risks.
A blanket prohibition on “competing brands” is easy to draft, but difficult to enforce. Contracts work better when exclusivity is broken into component parts: category (running shoes or sportswear); channels (personal social media or public appearances); territory; and exceptions for existing contracts, personal use, and charity activity.
Specific competitors or product categories that would dilute or damage the brand should be expressly named. Clarity upfront avoids disputes later and ensures both parties understand the boundaries of the relationship.
The final point
Celebrity endorsements are structured transfers of value. The brand borrows recognition, reputation and reach. In return the celebrity gains financially. Get it right and the association benefits both parties. Get it wrong and the same borrowed thunder becomes a lightning strike.
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Authors
Lucy Marlow
Partner
Benedict Sharrock-Harris
Associate
Ashkon Camyab
Associate
Stephen Sidkin
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