'360' Agreements Reflect Industry's Economic Shift
September 29, 2008
During the last few years, recording artists have been entering into so-called "360 agreements" with record companies and entertainment corporations in increasing numbers, changing the relationship that existed for decades among artists and major labels. Instead of focusing solely on sales of recorded music, the record companies now are sharing, through these agreements, in performers' income from a 360-degree range of professional activities. These developments reflect the difficulties encountered in the music industry as electronic transmission of recordings has become dominant and piracy rampant, making the financial returns from sales of records insufficient to justify the cost of creating, marketing and promoting recorded music.
Decision of Note
September 29, 2008
The U.S. Court of Appeals for the Seventh Circuit decided that NBC didn't breach the employment contract of a producer for the investigative TV series "Dateline" when it fired the producer at the end of a contract cycle.
Right-of-Publicity Amendments Extend Protections, But Marilyn Monroe LLC Suffers New Setback
September 29, 2008
Los Angeles entertainment attorney Robert A. Finkelstein accompanied Nancy Sinatra to Washington, DC, last summer for a U.S. Congressional hearing on a proposal for terrestrial radio stations to pay performance royalties to air sound recordings. Sinatra was a key artist-rights witness before the House Subcommittee on Courts, the Internet and Intellectual Property. Finkelstein praised a recent change in Washington state's right-of-publicity statute. The amendment, which took effect in June 2008, eliminated a personality's domicile as a bar to bringing a right-of-publicity suit.
e-Commerce Slows Again
August 28, 2008
For this year's second quarter, preliminary estimated e-commerce spending was 3.3% of total estimated retail spending of $1.034 trillion. In a likely reflection of a recently slowing economy, that percentage of e-commerce of all sales was the same for the third consecutive quarter ' something that's happened only once, in 2001, when the percentage of e-commerce sales was 1.1% for the first through third quarters.
LLC Interests May Constitute 'Securities'
August 27, 2008
Recently, the Second Circuit Court of Appeals, in affirming convictions for securities fraud and conspiracy to commit securities and mail fraud, ruled in <i>U.S. v. Leonard</i>, that interests in various limited liability companies ("LLCs") onstituted "securities" for purposes of the federal securities laws. The Leonard analysis is instructive of the process that a court will follow in considering the status of non-traditional securities, such as LLC interests, under the federal securities laws.
Upcoming Events
August 27, 2008
Texas Bar 18th Annual Entertainment Law Institute: Legal and Business Aspects of Film, Music, Sports and Digital Media, Austin, Oct. 2-3. For further information: 800-204-2222 Ext. 1574 or 512-427-1574; www.TexasBarCLE.com. American Bar Association Annual Forum on the Entertainment and Sports Industries 2008 Annual Meeting, Los Angeles, Oct. 16-18. For further information: 312-988-5658; www.abanet.org/forums/entsports.…
