Legal Manuevers

I have been fascinated to read about several entertainment industry related cases and decided to share them with you. Technology, business practices, and other events are changing the industry and changing how the industry and those in it operate.

The first case involved actor Jared Leto and his band 30 Seconds to Mars being sued by their record company EMI/Virgin. The record company filed suit against the band for damages totaling $30 million dollars. Mike Masnick, who writes for Techdirt.com shared the following thoughts on the legal actions by the band and the record company.

"It's always fun to remember stories like the following one the next time you hear some RIAA exec claim that it represents musicians. The RIAA (Recording Industry Association of America) represents the record labels and record labels are continually at odds with musicians -- sometimes to extreme levels. Wired reported that EMI/Virgin Records had sued the band 30 Seconds To Mars for $30 million recently. Wired now points us to the response from 30 Seconds To Mars, where the band notes that the lawsuit appears to have a lot more to do with the band opting out of its contract. The band points out that, under California law, a contract of more than seven years is not valid -- and the contract EMI held with the band was for nine years.

So why opt out? Perhaps this has something to do with it:

If you think the fact that we have sold in excess of 2 million records and have never been paid a penny is pretty unbelievable, well, so do we. And the fact that EMI informed us that not only aren't they going to pay us AT ALL but that we are still 1.4 million dollars in debt to them is even crazier. That the next record we make will be used to pay off that old supposed debt just makes you start wondering what is going on. Shouldn't a record company be able to turn a profit from selling that many records? Or, at the very least, break even? We think so.

The RIAA itself will be the subject of future research for me but this article is interesting to all who are in the entertainment business and wish to be fully compensated for the work we have done. 30 Seconds to Mars cited the De Havilland Law that states "no service contract in California is valid after seven years" This is great to know for all parties before signing a deal. The record companies seem to be experts at not compensating artist. Does the law where the record company is based take prescendent over where the artist are based? I am not aware if a similar law is in place in New York but what if a NY label signed a California band, does the De Havilland Law protect the band in the same way? The De Havilland Law is named after actress Olivia De Havilland after a successful lawsuit on her behalf which set the prescendent. It has been challenged but no definitive understanding of exactly the application to record deals has emerged because both sides are attempting to muddy the waters.



"In 1987, the record companies lobbied legislators to pass an amendment to the Labor Code Section 2855, which applies only to recording artists and allows record companies to sue recording artists for damages if the artists do not fulfill their original contract.
After seven years, this amendment is no longer relevant, according to Cappello, and artists have the legal right to terminate a recording contract without repercussions, he said."

It is ridicoulous for a record company to sell 2 million records by an artist and claim that they have lost money. It would be almost impossible. Without reviewing the entire contract between the band and record label, we don't know if they provided tour support. Marketing, distribution, recording cost, and advance should have all been more then covered with 2 million units sold. It is true that record companies are masters at manipulating the books to control artist and minimize what they need to pay to the artist. Joe Strummer form the Clash said it was a form of child abuse. Many artist sign deals at a young age and without proper representation. They have no real idea what they are signing and what the contract language means. George Michael ended up spending millions to be freed from his record deal. Strummer decided to "bore them out" because he didn't want to waste millions to be released form an unfair deal. He limited his work to film scores, producing, and performing the 1-2 songs per other artist albums or soundtracks that his contract allowed for and a few tours fronting the Pogues. When he was released he got back to music after signing a deal with Hellcat & Epitath Records. He selected them because of his managements experience with the label and the fact that Hellcat Founder Rancid's Tim Armstrong was a huge fan of Strummer's and he knew he would be treated well and fairly.

I believe artist should write into the language of their record deal that they have full rights to oversee all cost and review all accounting documents related to their business with the label. If the label is claiming to have spent $18 million on marketing for the band then they should need to produce detailed documents of where and how the money was spent. It would be wise for the artist to need to approve any spending on their behalf before it occurs. It will help keep the artist cost under control. Artist must act as an active participant in business decisions made involving their business! I know many artist don't like to think of their art as a business but it is! The artist who don't treat it as such usually end up broke and at the mercy of their record label.

Masnick, concluded his article with a very strong statement against the RIAA, that I felt was worth sharing. "So, at what point will the press and politicians stop buying the RIAA's claims that it's looking out for the musicians and trying to get them paid? The RIAA has always been in the business of not paying musicians."

In 2009, 30 Seconds to Mars and their record label settled their dispute and continue to work together. The exact terms and conditions of the settlement agreement remain unkown.

The next case I was drawn to is Courtney Love being sued by the parent company of her record label Vivendi Universal and her countersuit against the same label. This case has numerous similarities to the 30 Seconds to Mars case. The record company filed lawsuit because it claims that Love did not deliver the 5 albums that the contract called for. Love claims that the terms of the contract are unfair to artist, is an industry practice by record labels that operate under unfair contracts, terms, and work conditions.

According to ABC News, {"Labels, nevertheless, continue to intimidate artists who try to end contracts after seven years by suing them for lost profits, the attorney added. Cappello said this suit "will shake the very core of the way business is conducted in the music industry, and it will give countless musicians the financial and artistic freedom they do not currently enjoy."
"I'm one in a long line of artists who have tried to break free since the [Universal/PolyGram] merger," Love said. "Beck, Garbage, Sheryl Crow, and others have tried to leave or sue that company and they've all been shut down or threatened."
Crow's attorney, Jay Cooper, said, "Sheryl expressed some unhappiness but never threatened to sue, and eventually, we renegotiated the contract."}

Courtney Love's band Hole Celebrity Skin

 The De Havilland Law appears to be best used not to be freed from a record deal but to renegotiate the deal. That is what 30 Seconds to Mars did and that is what Sheryl Crow did. It appears the labels can be pressured into striking a more fair agreement but if an artist wants to be free to sign with a competitor label they will fight it until the bitter end.

Perhaps labels should be more fair in the contracts they sign an artist to and their business practices. Yes, the record industry and those who work for it have become enormously wealthy operating the way they have but it has always been unfair. Now artist and their representation are becoming aware and informed enough to fight back. These battles going on are reshaping the industry even if it takes a long time. I do not expect the industry to start being fair because a few artist have managed to renegotiate or get out of their deals. However, continued pressure, loss or revenue and artist simply starting their own labels may force them to do so in the future. If you are an artist reading this you have been warned to be very cautious in your business relationships within the entertainment industry. Hole: Malibu

The final case I wanted to discuss involves Joel Osteen and Lakewood Church. I enjoy listening to Joel's televised sermon's every week. They help focus my brain on the positive and it is often needed in these challenging times. This case is interesting because the two parties had signed a licensing agreement for use of the song Signaling Through The Flames. What has sparked the lawsuit is disagreement of when the agreement ended or will end.

Brenda Sapino Jeffreys writes that, "The plaintiffs allege in the complaint that the defendants entered into a “limited licensing agreement” to use “Signaling Through the Flames” on their website and in certain venues, but that agreement expired on Feb. 1, 2011, after one year, and the defendants did not renew it. Lakewood spokesman Donald Iloff writes, “The music in question is 1 minute of background music which Lakewood Church had a license to use. The plaintiff is apparently confused about the scope of the license, and are now demanding $3 million for uses that are authorized. We think this is unreasonable.” This appears to be the main issue because both parties agree that Lakewood did at some point have the proper licensing agreement for the song. Is it still in force or has it expired. Did one or both sides not fully understand the terms of the agreement. It appears clear there has not been an intentional  unauthorized use of the song. It seems that a fair agreement on compensation can be reached easily when there is a ruling on what the terms licensing agreement are.

The lesson in the above case and all of the cases is to fully understand the law, rights, & responsibilities. Hire quality experts to guide and approve any deal you are involved in. One of the best lessons I have heard from many legal experts over the years is that what a contract does not say can be more important then when the contract does say. If you are being recruited by a company for a record deal, film deal or any thing else and they are treating you well, being very kind to you, giving you gifts, taking you to expensive dinners, and telling you how much they love you. Understand that all those good feelings will not help you if you enter a dispute with the company. The only thing that will help you is to have handled your business like a true professional.
Joel Osteen "Don't Lose Your Joy"

Writing on these three cases made hear The Clash's Complete Control in my head while typing, so I decided to post it as the relevant record of the week. It is the Clash's response to their record label releasing their song "Remote Control" as the next single instead of the track the band felt was best and overall their feelings of mistreatment and manipulation by their record label and management. The song came to fruition when their manager Bernie Rhodes and Sex Pistols manager Malcom McLaren called the two bands together for a meeting and stated that they "Demand Complete Control". The meeting ended at that moment with both bands laughing hysterically as they stumbled out into the streets of London repeating the phrase "Complete Control" as the two bands headed off in different directions. The Clash's "Know Your Rights" may have been a relevant recording as well but I'll save it for another time.

Photo 1: Copyright@Sanderbaks.com
Mike Masnick's full article can be found here: http://www.techdirt.com/articles/20080820/0204472040.shtml
Hellcat Logo: Copyright@Hellcat Records
Photo 2: Copyright@JaredLeto
The full ABC News presentation on Courtney Love can be found here: http://abcnews.go.com/Entertainment/story?id=108872&page=1
Photo 3: Copyright@Courntey Love
Photo 4: Copyright@Joel Osteen
Brenda Sapino Jeffreys' full article can be found here: http://texaslawyer.typepad.com/texas_lawyer_blog/2011/08/recording-artists-and-record-company-owners-sue-lakewood-church-pastor-joel-osteen-and-co-pastor-vic.html

PROVOKING INSPIRATION

I watched a fantastic and inspiring speech by J.K. Rowling and wanted to share my insights on her insight. J.K. Rowling is best known for being the author and creator of the Harry Potter series of books. Her books are some of the best-selling of all time and have been turned into a immensely valuable movie & merchandise franchise.

Rowling grew up in a family of little financial wealth and after college graduation would fall to "lowest level of poverty one could endure in Great Britain without being homeless". In her, June 2008 speech at Harvard University Rowling details her life post-college and prior to mega success in a speech she entitled The Fringe Benefits of Failure. She is a enjoyable public speaker. She immediately won the audience by telling them of the weeks of anxiety she had over giving the speech but that it "helped her to lose weight and now all that I have to do is squint at the red banners in the back and pretend that I am at the world's largest Gryffindor convention". She threw in a gay wizard joke and also maintains a enjoyable pace and remains on topic while entertaining her audience.

It is provocative to go to a world renowned university where so many Presidents, Congress people, business leaders, and other titans of numerous fields have graduated from and speak about failure and how it can be beneficial. Harvard sells the success of its university and those who have graduated from it. They don't focus on failure they focus on success. Harvard invited J.K. Rowling to speak because she is so successful and wealthy. The graduates are eager to get our in the world and make their mark and yet she is going to come there and tell them that failure can be a good thing? She did and it may have been the most valuable lesson they learned during their entire tenure at Harvard. She pointed out that although Harvard does not insulate people from life and its ups-and-downs that by the fact they were Harvard graduates they probably had not yet truly come to know failure.

She discusses the importance of following your passion and ambition and not the ambitions and goals that others have for you. Her parents never wanted her to become a writer, they felt it would lead only to a live of unhappiness and poverty yet when she finally began to follow her own passion it led to nearly unmatched wealth in the world, fulfillment, and happiness. Her and her parents both wanted the same things for her but they had different ideas of how she should obtain those goals. After following a path that was her parents and not her own for 7 years after graduation she found herself on government assistance, was diagnosed with clinical depression, contemplated suicide, divorced, a single parent, and directionless.

During her Harvard speech she said "Failure meant a stripping away of the inessential. I stopped pretending to myself that I was anything than what I was, and began to direct all my energy to finishing the only work that mattered to me. Had I really succeeded at anything else, I might never have found the determination to succeed in the one area where I truly belonged. I was set free, because my greatest fear had been realized, and I was still alive, and I still had a daughter whom I adored, and I had an old typewriter, and a big idea. And so rock bottom became a solid foundation on which I rebuilt my life."

While living on welfare and odd jobs she began writing her first Harry Potter book. She knew before she ever attended college she desired to write novels but her parents pushed her towards a different path that was not her own.What has she gained from her failure and the insight and perspective to finally follow her own passion?

"As of March 2011, when its latest world billionaires list was published, Forbes estimated Rowling's net worth to be US$1 billion.^[9] The 2008 Sunday Times Rich List estimated Rowling's fortune at £560 million ($798 million), ranking her as the twelfth richest woman in Great Britain.^[10] Forbes ranked Rowling as the forty-eighth most powerful celebrity of 2007,^[11] and Time magazine named her as a runner-up for its 2007 Person of the Year, noting the social, moral, and political inspiration she has given her fandom.^[12] In October 2010, J. K. Rowling was named 'Most Influential Woman in Britain' by leading magazine editors.^[13] She has become a notable philanthropist, supporting such charities as Comic Relief, One Parent Families, Multiple Sclerosis Society of Great Britain, and Lumos (formerly the Children's High Level Group)."-Sourced from Wikipedia.org

I found her speech empowering, moving, and 100% similar to my own life journey. My parents, especially my Father often had different goals for me then I did for myself. I have always been drawn to creativity, music, film, writing, reading, sports, communication, animals, history, travel, leadership, innovation, and excitement, etc.. The first job I accepted after graduation was OK but the company was not honest and was constantly trying to rewrite agreements to avoid paying me the agreed compensation as the goals were reached. I quit and formed my own business producing sports related seminars. I organized, sold, promoted the first one in 2.5 months and earned a significant 5-figure profit. I went to my parents house following the event and when asked informed my Dad how much I earned and he replied "that is great now go get a job". He'd often call me up to tell me about the assistant manager he met while shopping that wasn't earning half-annually of what I made in 2.5 months. I had plenty of other people that wanted to offer me low-expectations because that is where their comfort so is but it has never been where mine is. I am a high-achiever and need to be in order to be at my happiest.


I went on to greater success in sports, music, and business consulting. However, I haven't yet achieved the levels I am meant for. The reason is because like J.K.'s parents I had people placing their low expectations, goals, and fears upon me. Often when an opportunity for greater success would be presented it would frighten or overwhelm me because of the programming I allowed to occur over the years. I was leading a good life nonetheless when due to a manufactures defect my Toyota 4Runner lost control, flipped over, and spun around on the roof several times before finally coming to a stop on one of the busiest roads in Gainesville, FL during rush hour. I barely was able to keep my beloved Golden Retriever Dakota in the vehicle by placing my hands on him every time I saw red flash before me. When we came to a stop I was hanging upside-down by my seat belt and he was standing on the roof just above the windshield.  He ran off when they pried the doors open and I was worried I'd lose him after just saving him. Thankfully he came out of the bushes he hid himself in to avoid capture by the good Samaritans that were chasing him. I stood there holding him on the median after the EMT's, witnesses, and most of the police had left, the rain pouring down upon us, my paid off vehicle being totaled and assessing where I was and what I needed to do to make it better. I figured I would just go out and make even more money to again drive a new vehicle without payments, to cover the increased insurance, and to regain my life via the physical therapy I would obviously need. I had no idea of where my life was headed. I spent the next 4 years in physical therapy, working sporadically because of the pain. I faced unsteady income but at times still every substantial.

I was pushed into new lines of work, I would meet my hero about a month later and by the end of the year Joe Strummer would have been dead. My Father passed away in October after a battle with Parkinson's. Reading about J.K.'s Mother battling Multiple-Sclerosis reminded me of my Father and I know how that disease effected her and her Mother even before her passing. I'd have other episodes of very bad fortune, identity theft more then once, numerous friends, dogs, loved ones, and clients dying unexpectedly. Each one a new trauma and brought back the pain of the previous ones. I decided that everyone with low expectations must be right and that was the way to have a good and safe life. It wasn't it was a way to become miserable, unhappy, and directionless. All the life was sapped out of me and I allowed it. Thank God I had my dog Dakota to love and inspire me! I do not know what I would have done with out him, he took care of me during the worst years of my life and often was my only direct companionship and source of love as my family did not live nearby.

What I hope anyone reading gets out of J.K. and my story is the minute you start pursuing those things in life that you are passionate about you become happier and lighter. J.K. is extra inspiring to me because like her I am a writer, work in the entertainment industry, and as it turns out we are both huge Clash fans. Joe Strummer often repeated "What one person can do another can do" and listening to J.K. and the Clash connection it made me think of Joe.


When you start following your life's passions life become significantly easier for you in all areas. It isn't always perfect but it is 100% better. J.K. rightfully states that "achievable goals are the first step to self-improvement."

If you are reading this and unfulfilled be a good student and take to heart the lessons J.K. and I learned the hard way. She passionately implored you to discover your true ambitions and pursue them without delay and I can tell you it is the best lesson you will ever learn and you don't have to go to Harvard to get it.


In Loving Memory of Dakota Oberon Baldacchino June 22, 1999-January 7th, 2011. If I can live my life the way he lived his, I will have a extroadinary and happy life.

What a bunch of hacks!

I always had a natural talent for writing and often fantasized about what it would be like to have one of the screen plays, books, songs, or TV show ideas I write in my spare time be produced. I spend most of my time managing the affairs of others and helping to bring their projects and dreams to fruition.

This past week, I began to establish goals, deadlines, and research the resources I will need to begin having my projects completed. I decided to move my projects as near the top of the list as possible. I do enjoy helping others reach new levels but those great attributes and talents I have can become a detriment to me if I do not use them to fulfill my life long dreams.

Often people make a goal harder to achieve in their own mind then it is in reality. The Great Joe Strummer often said "What one man can do another can do!", and he was 100% correct! Most people never try because they simply think, I don't have the right connections, I don't have the time to write (mostly because they are watching too much TV), I'll do it later etc.

@Pennie Smith

When I think about the amount of hacks & loons that have published a book, a song, written a movie, or a TV show it gives me a sense of, I can do it to! Most of these people are not as creative as I am but they did focus on the task at hand and I focused on other people's projects and at times surviving and rebuilding.

I began watching Modern Family this year. It is in it's second season on ABC and was created by Christopher Lloyd & Stevan Levitan. It is an enjoyable, wholesome, funny and award winning show. It has won numerous awards, several for Lloyd and Levitan. The show is shot Mockumentary style, which means using a single camera and pretending a documentary crew is filming it. Hardly an original idea as shows like The Office, Parks & Recreation, and others have already used it successfully. What has helped create so much enthusiasm for the show and so many accolades for the creators is the characters. This 'Modern Family' to most is not like any family we have seen on TV before. The praised heaped on the writers for creating these characters could make aspiring writers think they may not be able to do it. "It is such an original concept"the media exclaims! Hollywood is not known for it's original ideas that is why when a show or movie comes along that is fans, media and entertainment insiders all take notice. The series Lost, Married with Children (for comedy, how they pushed the envelope, topics, etc), and the original Battlestar Galactica (Hollywood ran out of ideas so had to recreate it) are perfect examples.

I enjoy the show and watch it every week. The acting, camera work, lighting and overall production of the show is excellent! There has always been something so familiar about show, like an old friend or the sights and smell of home. Then one day while playing fetch with my Golden Retrievers, with my mind clear, it became obvious that Modern Family is not the creation of creative geniuses but the continuation of my favorite show of all time Married with Children!

@ShareTV

Apparently Lloyd and Levitan are as big of fans of Married with Children as I am. They cast Married with Children star Ed O'Neil in the lead role of Jay Pritchett. Ed's performance as Al Bundy was brilliant and will be remembered as one of TV's all-time best characters.

@ShareTV

Al Bundy was a man who in high school lived the high-life. He was a football star (he once scored 4 touchdowns in a single game), was in great shape, tough and a winner! Then he met the "red headed monster" named Peggy Wanker. She would entice Al into marrying her and they'd soon have their two children Kelly, who was a beautiful blond and Bud (who was a troll). Al had to give up his dreams and work at the shoe store. He thought it only temporary but he worked at the shoe store for decades. He tried many schemes, scams, and honest efforts to improve his and his families lives but his efforts were always foiled (usually by his family and friends).

It is clear that Al managed to change his luck and strike it rich! Al often would speak his dreams out loud during the numerous seasons of the show. He would move "to the land of huge man made hooters (California)". Modern Family is set in California. Check!

@Getty Images

He would marry a tall, young, beautiful, large breasted woman who couldn't speak any English. Have you seen Sofia Vergara? She plays Gloria Pritchett the wife of Jay Pritchett. Check!

He had various scenarios of what would become of Peggy Bundy but apparently he sold her to a biker gang. How did I come to this conclusion? Katey Segal who played Peggy Bundy is the ole' lady of the leader of a biker gang on the show Sons of Anarchy. That show is also set in California so apparently he dropped her off on the way to Los Angeles.

Jay Pritchett apparently owns a business but in all the episodes I have seen I have only seen him at work once. Al & Jay both are classic manly men and share a love for classic music like Frankie Valley & The Four Seasons.

@ShareTV

@DailyCeleb.com

What became of Al & Peggy's children? He still has a beautiful blond daughter, her name was changed from Kelly to Claire Pritchett-Dunphy. She married a duffus, like Al always feared, named Phil Dunphy(he is seriously funny).

@ShareTV

 What about Bud Bundy? On Married with Children, Bud was always trying to prove he wasn't gay but apparently he finally admitted he was. Jay Pritchett has a gay son named Mitchell (Mitch) Pritchett. Bud did well academically in school and apparently became a lawyer and changed his name to Mitch. The actors who play Bud (David Faustino) and Mitch (Jesse Tyler Ferguson) are both small in stature.

@Getty Images

 I guess Lloyd and Levitan wondered what ever became of the characters on Married with Children and thanks to them we all know, they are living well in California and still have adventures filled with fun and laughter. Well, not Peggy but she had it coming!
 

screenshots@silvestris