e-Commerce Slows Again
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'
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
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.…
IRS Regulations For Song Sales Tax Treatment
The Internal Revenue Service (IRS) has issued proposed and temporary regulations specifying the time and manner for electing to treat the sale or exchange of "self-created" musical compositions or copyrights as the sale or the exchange of a capital asset resulting in a potential capital gain.
Advances to Talent
In yet another example of the lunacy of the tax laws as they apply to compensation for personal services, it is possible that the advance payment made to talent might be subject to a 40% penalty ' 20% under Sec. 409A of the Internal Revenue Code of 1986, as amended (IRC), and 20% under the laws of those states, such as California, that have conformed to Sec. 409A. This could push the effective marginal tax rate on the advance to over 80%. Needless to say, this result is disastrous, and extreme care must be taken not to run afoul of the rules.
Revised PhRMA Code Provides a New Roadmap
Providing physicians with up-to-date, accurate information about the medicines they prescribe clearly improves patient care and advances health care in general. Nonetheless, the public health need for informed and educated HCPs may, at times, create tension with the pharmaceutical industry's perceived drive for profits.