Wednesday, December 11, 2013

10 Legal Questions


10 legal questions

Lawyer:     David M. Brown, Esq.
                     Moran Law Firm LLC
Civil Litigation
Business Litigation
Insurance Defense
Premises Liability

Recipient: Marc Guerrero

1: How would I go about creating and securing my company name?

You would have to figure out the kind of business I wanted if I wanted to have a LLC, a partnership, or incorporate, it depends on what legal protections you wanted.  Most people go with LLC, which is a Limited Liability Company

2. How would I get a LLC?

You would have to find a name that is available in this state. Then file the formal paperwork and pay the state-filling fee, create an operating agreement for your company, and then obtain permits and licensing that your company would need

3. How long would I have the rights to that company name?

In Nevada one would pay a yearly fee to be a company a licensed business. If you don’t you could be looking at thousands of dollars in accumulative fees and penalties and you should look to dissolve your company

4. How would I go about paying or getting the rights to use someone else’s song?

You would find and contact the person who owns the song or the company who owns the licensing. And get the licensee from them to use any of the original material

5. How would I protect my intellectual property?

Easy, once you have or created your intellectual property like a song, book or  image, copyright it immediately. Have all the right copyright forms from the Copyright offices and the Library of Congress and may pay some fees then you sill solely own the rights to that material

6. Are there different types of music royalties?

Yes, I know there are a few. The ones I know is the Mechanical royalty, which is, based on for use of CD’s, DVD’s, tapes for any public distribution. The live performance royalty, which would allow an artist or company to use it in a live setting.  Print royalty, which is used for books and downloads. Foreign royalties. Which is obviously any usage outside the US. I know there are a few more but those are the basic ones. Some are getting a lot trickier with the advancement of technology.

7. How are Royalties calculated?

Royalties are very complex and circumstantial. It depends on the licensing deal and agreement. It depends if you are the soul owner. Most music and songs have many songwriters, producers, performers, and distributors. So it depends on how many songs were sold and played. So every time that song is played or used. You and the people involved with ownership to the rights would get a small percentage. Its usually just pennies per use but if it used or sold a lot it would equal up to millions and millions of dollars. That is why there are so many cases of artists and companies suing for not paying the right amount of royalties or using the song illegally.

8. If working or hired by an outside company what would I legally  want to make sure happened?

Say if a company like MGM hired you. They would have a contract drawn up for you. Make sure the contract is what would you and them agreed upon. I would honestly say, Come See ME! Just because there are many different kinds of contracts. Some for long lasting projects, single events and so forth. So you would want to make sure everything was legit before signing anything. So I would maybe take it to someone like me or your lawyer to look over everything!

9. How would I hire new employees for my new small business to make sure everything was legal?

A few steps one would have to do. Have to get an Employee identification number or the employee tax ID. You would have to get the correct identification and proper work cards. Have the licensing to work certain equipment or operate certain machinery. Make sure you have the right employee paperwork, this must include  W-4 or 10-99 tax forms so the all the  taxes are reported correctly. Draw up a contract for compensation and all other work related details. Set up the right payroll system for your company.

10. What are the most common mistakes people do while opening up a new small business?

I would say one of the biggest mistakes people make is not doing all the legal paperwork and filling for a new business and trying to cut corners because one thinks your saving money. In the end it will come back to haunt you and you will end up paying more in fees and other penalties and your company will go bankrupt. Hire a lawyer to look at all your legal documents and paperwork and have the right financial team so you know your budget. When people try to save money that’s when the illegal activities tend to happen and they end up getting sued or bankrupt.  

Legal Authority


Legal Authority

I made contact with David Brown. He is part of the law firm the Moran Law Firm LLC. To be honest I actually have known Dave for awhile. I knew him since he was in Law School. I knew he would be a good choice, one, he has studied in Intellectual Property and also in Business Law. And those are both topics that I would need to know to start a business.
“Business methods changed quickly during the first half of the last century. Transportation speeded up. Corporations routinely conducted business across state borders and around the world. These developments presented a problem. Common law principles, whether related to contracts, torts, or anything else, sometimes vary from one state to another.” Also I thought it would be easy and great to talk to someone I knew. He knows I am in entertainment and I have asked him questions before.  “Contracts: is a promise that the law will enforce. As we look more closely at the elements of contract law, we will encounter some intricate issues, but remember that we are usually interested in answering three basic questions of common sense, all relating to promises.”  So over all I thought choosing David as my legal adviser was a great choice. I also use him as my regular lawyer. He works with my legal documents and looks all over all my contracts. Agency is the fiduciary relationship that arises when one person (a principal) manifests assent to another person (an agent) that the agent shall act on the principal's behalf and subject to the principal's control, and the agent manifests assent or otherwise consents so to act.

The Questions


The Questions

I came up with my questions because I want to eventually start a business dealing with Audio Production. So I was interested in laws that had to do with starting a new business and what documents I had to file to make everything legal. Limited Liability Shareholders of a corporation have limited liability, which means that if a corporation cannot pay its bills, shareholders lose their investment in the company, but not their other assets. Be aware, however, that individuals are always responsible for their own acts. Suppose that a careless employee who is also a company shareholder causes an accident at work. Being a shareholder does not protect him from liability for his own misdeeds. Both he and the company would be liable.” I would also need to know about copyright laws. What I would need to do to  protect my music. The rights that I would have to have to use  someone else’s music etc.. “The holder of a copyright owns the particular expression of an idea, but not the underlying idea or method of operation. Abner Doubleday could have copyrighted a book setting out his particular version of the rules of baseball, but he could not have copyrighted the rules themselves, nor could he have required players to pay him a royalty.” So all my questions were based on Audio and Business information. How to start one? What are some of the biggest mistakes? How to protect my intellectual property and all the legal papers I needed to start and continue a successful business. “Infringement: Anyone who uses copyrighted material without permission is violating the Copyright Act. To prove a violation, the plaintiff must present evidence that the work was original and that either.”

Reasoning of the Law


Reasoning of the Law

The reasoning that Mr. Brown was using was all legal talk. When talking to him he obviously knew that some of the issues were outdated and really odd, but he was talking to me about all the legal issues and all the red tape that I would have to do when starting a new business or any of the copyright laws that I would have to deal with. “If an individual runs a business without taking any formal steps to create an organization, she automatically has a sole proprietorship. It is, if you will, the default option. She is not required to hire a lawyer or register with the government. The company is not even required to file a separate tax return—all profits and losses flow through to the owner and are reported on her personal return.”  Dave is my  friend but during the interview he was answering as strictly my lawyer.  He was giving me advice, but making sure I took correct legal steps so I would have all the proper licensing. “When a sole proprietor dies, legally so does the business. But corporations have perpetual existence: they can continue without their founders.”

“Ownership interests in a partnership are not transferable without the permission of the other partners, whereas corporate stock can be easily bought and sold.”

Rule Of Law


 

Rule of Law

The rule of laws on some of the topics were a little complex but they are set so everyone follows the rules and does the same thing. They are there to protect the rights of your company and the rights of your intellectual property. Property: means all tangible property other than real property.” All the laws that we discussed are there for a reason.  If they were not there people could just steal all your property, like your songs, your images, and make a profit from it. “If a person is intent on lying, cheating, and stealing his way through a career, then he is unlikely to be dissuaded by anything in this or any other course. But for the large majority of people who want to do the right thing, it will be useful to study new ways of approaching difficult problems.”

“Unethical behavior is a risky business strategy—it may lead to disaster. An engaged couple made a reservation, and put down a $1,500 deposit, to hold their wedding reception at a New Hampshire restaurant. Tragically, the bride died four months before the wedding. Invoking the terms of the contract, the restaurant owner refused to return the couple's deposit. In a letter to the groom, he admitted, “Morally, I would of course agree that the deposit should be returned.” When newspapers reported this story, customers deserted the restaurant and it was forced into bankruptcy—over a $1,500 disagreement.5 Unethical behavior does not always damage a business, but it certainly has the potential of destroying a company overnight. So why take the risk?”

Own Arguments and Opinions


Your Own Arguments and Opinions

I agreed with almost everything Dave was talking about. I understand it’s the law and you have to pay the right amount of licensing fees and registration fees to start a new business. I think that the copyright laws are great. They are there to protect everyone that has created something original. If you want to use someones original work you should pay them. Yes, I wish that some of the laws weren’t so complex. It feels hard just to do a simple task, but that is how it is always going to be. Overall I think that they are there for a great reason. I liked learning about them because I know I will need to use them in the future. “Fair Use Doctrine Permits limited use of copyrighted material without permission of the author.”

“It is illegal to delete copyright information, such as the name of the author or the title of the article. It is also illegal to distribute false copyright information. Thus, anyone who emailed Tom Tomorrow's cartoon without his name on it, or who claimed it was his own work, would be violating the law.”

"International Copyright Treaties: The Berne Convention requires member countries to provide automatic copyright protection to any works created in another member country. The protection expires 50 years after the death of the author.”



Used Cars


1.     Theft of personal property
2.     Theft of intellectual property
3.     Tamper with property
4.     False advertisement
5.     Tax evasion
6.     Jury tampering
7.     Drugs smuggling
8.     Bribery
9.     No seatbelt
10.  Reckless driving
11.  Assault of a=officer
12.  Hit and run
13.  Driving on wrong side of road
14.  Over speed limit
15.  Broken property
16.  Lied under oath
17.  Breaking and entering
18.  No license plates
19.  False evidence
20.  Assault
21.  Gun possession
22.  Man slaughter
23.  Sexual assault
24.  Criminal activity in news station
25.  Paid off jury
26.  Driving with no instructor
27.  Theft
28.  Driving in construction zone
29.  Inside information
30.  Compromised video
31.  Stole paper from the truck
32.  Disturbing the peace
33.  Destruction of private property
34.  Drug smuggling
35.  False advertisement
36.  False representation
37.  Jay walking
38.  Perjury
39.  Concealed weapons
 Tampering

Thursday, December 5, 2013

Week 10: Lawyer Jokes




The Honest Lawyer
Q; When do you know a lawyer is telling the truth?

A: When his lips are shut.

Deathbed Lawyer
Q: Why was the lawyer skimming the Bible right before he died?

A: He was looking for loopholes!

Bad Lawyer
Q: What do you call a lawyer who has gone bad?

A: Senator.

Tuesday, December 3, 2013

Bratz Brawl


Bratz Brawl

The court battle that has been going on for the past 9 years has been between the popular Mattel known for Barbie and MGA the rival Bratz dolls. The legal issue is about who owns the intellectual property right to the Bratz franchise. The girls fashion doll that was worth $400 Million per year at the heights of its popularity. The original concept of the Bratz doll was from designer Carter Bryant. Bryant was working as an employee of Mattel at the time but soon after moved to MGA. Mattel soon then sued MGA claiming copyright infringement and theft of trade secrets. "From Mattel's perspective, it was very important for them to send a message," http://www.marketplace.org/topics/business/barbie-v-bratz-never-ending-court-battle
In 2008 a federal jury found the Bryant developed the idea and concept while being employed for Mattel. They awarded Mattel $100 million dollars. The verdict was quickly appealed and overturned and made to retrial. On the retrial the jury decided to in favor of MGA and rejected Mattel arguments. MGA counter claimed that Mattel did not develop the concept, but instead used employees with fake business cards to spy on MGA’s unreleased concepts and marketing plans, thereby stealing its trade secrets. The judge awarded $85 million dollars to MGA. Each side has spent over $100 milion dollars in legal fees at this point. We will do whatever it takes, to protect our intellectual property. "You can bet that anyone working for Mattel that's thinking of freelancing and coming up with a product of their own is going to think twice about how they do it," http://www.marketplace.org/topics/business/barbie-v-bratz-never-ending-court-battle
On Aug 4, 2011 the court denied Mattel’s motion for a new trial. It found that the recorded supported the jury’s verdict that MGA used viable efforts to protect its trade secrets. It ordered Mattel to pay an additional $139.9 million in attorney fees and costs. Now most recently Mattel asked a federal court of appeals to reverse the $310 million in damages and attorney fees. So the battle of the Brats brawl continues! The dispute holds an important lesson about the significance of well-drafted employment agreements. If Mr. Bryant’s employment contract had been more precise, the case might not have ballooned to such proportions or included claims for trade secret misappropriation. The two obvious problems with the agreement were failures to include 1) an express assignment of ideas; and 2) clear language defining the scope of “at any time during my employment.” Practically speaking, Mattel could have ensured all the employee agreements assigning rights were identical and created and communicated clear guidelines for employees, to reduce confusion as to where Mattel's ownership rights stopped and where the employees' began. As illustrated by this case, for businesses that thrive on their IP assets, carefully drafted employment agreements can make the difference between millions gained or lost.