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