Courthouse Steps
Recently filed cases in entertainment law, straight from the steps of the Los Angeles Superior Court.
Bit Parts
Recent developments in entertainment law.
Determining the Rights of Heirs In Copyright-Renewal Interests
The digital age and widespread, unauthorized Internet downloading have raised doubts about the strength of copyright protection. But the durability of entertainment content has nevertheless kept renewal interests in copyrights alive. It is often the children and spouses of deceased artists who are involved in fights over the economic promise of these copyright renewals. <br>Primary issues in cases claiming renewal-interest rights include the limitations period for filing a claim and how the renewal interests should be divided among an artist's heirs. Two recent cases demonstrate how these claims play out.
Taping Or Filming A Stage Production
Forty years ago, it was next to impossible to tape or film a stage production on Broadway or Off-Broadway in New York City. The various unions hadn't crystallized their demands, but for the most part, they didn't want to see it done. The feeling was that any taping of a play would shorten the run.<br>But it was inevitable that arrangements would be made so that stage productions could be taped and filmed for archival purposes, for teaching purposes and for commercial presentations in other media. It was also inevitable that there would be a price to pay for this.
Counsel Concerns
Attorney-Client Privilege<br>Personal Jurisdiction Over Lawyers
Clause & Effect
Comic-Book Characters/Profit Particpation <br>Merchandising Licenses/Scope Of Rights Granted
FASB to Change Leveraged Lease Accounting Rules: LILO Settlements to Trigger Rerunning the Earnings
The Financial Accounting Standards Board met on Nov. 17, 2005 on the subject of the accounting impact of IRS settlements of Lease-In-Lease-Out ("LILO") and Lease-To-Service Contracts (aka "SILO"). To the surprise of the leasing industry, the FASB reached tentative conclusions that a change in the timing of cash flows requires a recalculation of the leveraged lease earnings and the lease classification should be re-examined. The recalculation of earnings results in a large, negative catch up adjustment and a positive adjustment to future earnings, but spread over the life of the lease. The lease classification issue should not be a problem.
A Senior Secured Lender's Guide to the Risks Posed By Junior Secured Debt
In theory, a borrower's issuance of junior secured debt is a boon for its senior secured lender. The borrower obtains additional capital, and the claims of the junior lender against shared collateral, since "subordinated," don't diminish the senior lender's prospects for repayment. In practice, however, a senior secured lender should view proposed junior secured financing skeptically because the existence of such debt can become highly problematic for the senior lender. The key to protecting the senior lender lies in properly negotiating and documenting the intercreditor agreement with the junior lender to eliminate, or at least minimize, the myriad ways in which the junior lender's rights may, in practice, limit — or even trump — those of the senior lender.
