Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Protecting Record Producer's Interest In Music-Royalty Audit Scenarios
An unfortunate fact in the recording industry is that successful records result in audits by royalty participants. This is partly due to the entrenched distrust that artists have for record companies and partly to simple prudent business practices. If an artist sells hundreds of thousands or millions of units around the world, it would be the rare company that could move that many pieces of product without making a mistake. Sometimes the mistakes are just mistakes, and sometimes an audit holds up a mirror that reveals what happens under the record company hood – warts and all. And the “all” category can be very interesting.
An audit is usually conducted by an accountant to verify the books and records of the record company that back up accounting statements. From the record company's point of view, audits are a necessary evil. At major labels, the administrative cost associated with an audit is usually much more burdensome than dealing with any subsequent payments generated by the audit itself. In fact, fiscally sound record companies will reserve funds on the contingent-liability side of their financials to deal with audits that they know are in progress or are likely to occur. This reserve includes an unsegregated amount to cover artist, producer, mixer and remixer royalty payments.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
Coverage Issues Stemming from Dry Cleaner Contamination Suits
In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.