LJN Newsletters

Major L.A. Firms Face Fallout From Reshuffling
Cooley-Alschuler Merger Talks Ended
Loeb's Base Expands To Media, Internet

The U.S. District Court for the Eastern District of Michigan dismissed claims against Kid Rock's attorney William Horton and manager Edward Andrews by parties who lost two previous suits over contracts Kid Rock had signed early in his career. EB-Bran Productions v. Ritchie.

The producers of music-driven television programs, such as variety specials and music-based TV series, typically must negotiate with several key parties to obtain the rights to use the music and the services of the artists in the show. These parties include: music publishers that own, control and/or administrate the music compositions performed 'live and in concert' and/or on sound-recording masters included in the program; the record labels that own, control and/or administrate the masters; and the labels that are entitled to the exclusive recording services of the artists performing the music in the TV show. The program producer, who will likely have created the concept and format for the TV production, usually undertakes all of the production's associated risks and is responsible for the program's financing.
In the following interview coordinated by Entertainment Law & Finance Editor-in-Chief, Stan Soocher, Santa Monica, CA-based entertainment-attorney Henry Root discusses key aspects of the clearance process involved in music-driven TV productions, as well as producer/label negotiations and how they may affect the artist. Root has over 25 years of experience in the music and TV industries.

Highlights of the latest equipment leasing news from around the country.

Part One of this series discussed special perfection rules for purchase money security interest in inventory and additional risks when leased goods are 'inventory.' This second installment addresses: buyer in ordinary course of business under revised Article '9-320(A); power to transfer and entrusting under '2-403; and rights of buyers and Sublessee in ordinary course under '2A-305.

Many U.S. financial institutions that have participated in equipment leasing transactions (particularly in the large-ticket and municipal markets) in the last 20 years will be keenly aware that as the structures grew ever more complicated, Congress and the federal regulatory agencies grew intensely interested. Whether the institution had a major role in the transaction or simply provided a service, some degree of scrutiny could be expected, often in conjunction with a tax audit of its client. The risks to financial institutions from participating in complex structured finance transactions of all types became a source for concern for banking and securities regulators. The principal federal regulators responded in 2004 with a proposal that financial institutions investigate, and bear responsibility for evaluating, the legal, tax, and accounting basis of their clients' complex structured finance transactions. The goal: to limit the institutions' own credit, legal, and reputational risk from such participation.

The federal government is stepping up its aggressive enforcement of anti-money laundering/combating the financing of terrorism ('AML/CFT'). Enforcement actions have already spread beyond 'traditional' financial institutions, such as banks. Regulations that are expected to be promulgated soon will likely embolden these enforcement actions against leasing companies, equipment vendors, finance companies, and other 'financial institutions.' These parties should reassess their compliance risk under the AML/CFT rules. The consequences of these risks are important. For example, the loss of reputation from being brushed with the taint of money laundering can sink a business.

Highlights of the latest intellectual property news from around the country.