tag:blogger.com,1999:blog-21232282359863784782024-03-13T22:06:01.728-07:00Auditrix, Inc.The Power of KnowledgeCedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comBlogger130125tag:blogger.com,1999:blog-2123228235986378478.post-59718999110537133072024-02-18T18:32:00.000-08:002024-02-19T11:28:57.260-08:00How AI Impacts the Valuation of IP Assets: Betas<p>Watching NYU Professor Aswath Damodaran's recent video, <a href="https://www.youtube.com/watch?v=m_wVCnkLn-U">Catastrophic Risks in Business and Investing</a>, reminded me of a music investors' conference I attended last summer in New York.</p><p>At the conference, every panel discussion among music investment experts dedicated a few minutes to the looming elephant in the room - artificial intelligence (AI) - and whether it poses a catastrophic threat to music earnings in the future and, thus, catalog values today.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi06BPOBrJEbMa5Ncod8AaiUjBSWHH2LZohVxwZ32o7jBBk_CbOJRCh-1FVjWjmmG5LPNTwixeLOxJ-_Z64PvmBxN4bBGg3R983LYqkrjcVww3LPXydAKio_XpZMmNBaqrzpcx0B6xMFe2QMdmTYS-xI5B1beXR3lo0kovjFiL4rbfae3S8FSFDIooUYQSg/s903/silver%20scale%20weighing%20musical%20notes%20because%20we%20conduct%20music%20rights%20valuations%20at%20Boschan%20Corp..png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="903" data-original-width="903" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi06BPOBrJEbMa5Ncod8AaiUjBSWHH2LZohVxwZ32o7jBBk_CbOJRCh-1FVjWjmmG5LPNTwixeLOxJ-_Z64PvmBxN4bBGg3R983LYqkrjcVww3LPXydAKio_XpZMmNBaqrzpcx0B6xMFe2QMdmTYS-xI5B1beXR3lo0kovjFiL4rbfae3S8FSFDIooUYQSg/s320/silver%20scale%20weighing%20musical%20notes%20because%20we%20conduct%20music%20rights%20valuations%20at%20Boschan%20Corp..png" width="320" /></a></div><br /><p>There is a <a href="https://www.fool.com/terms/s/swot-analysis/#:~:text=SWOT%20analysis%20stands%20for%20strengths,their%20potential%20on%20multiple%20levels.">business tool called SWOT analysis</a>, which identifies a subject's strengths, weaknesses, opportunities and threats. It was as if all of the conference speakers - music investing experts - had reached SWOT consensus on talking points that AI was an "opportunity," not a threat. </p><p>However, beneath this facade of optimism, perhaps there was denial? A psychologically predictable reluctance to confront the existential threat posed by AI to the music industry? None of the speakers delved into the tangible impacts of low-probability catastrophic AI risk on the valuation of music rights interests.</p><p>Yet, markets were already adapting based on perceived greater-than-zero risks and opportunities created when AI increases the supply of music at less cost to users than human-made sources (i.e., composers and performers). The largest music companies and some individual artists were already hedging by investing in AI initiatives. Investors were already reassessing portfolio allocations, seeking to invest in AI to balance their portfolios, leaving less cash available for human made music investments. And my firm was already incorporating in valuation projects the music sector's relatively high exposure to AI-related risk in two respects:</p><p></p><ol style="text-align: left;"><li>Decreased prices (buyers/investors required greater return to compensate for greater relative risk)</li><li>Increased costs of equity for firms (since investors demand greater returns) </li></ol><p></p><p>As an astute expert on the value of music rights, I recognize the imperative of recalibrating risk premiums to reflect the evolving landscape. Therefore, I can not overlook the imminent specter of AI-induced disruption in the music industry, even if the probability is very low that the market for human-made music might erode catastrophically someday. </p><p>Drawing from the insights I gleaned years ago from Professor Damodaran's teachings at NYU, sector-wide risk is coalesced in the "beta" component of risk premiums in the discount rates we use to value income streams. The beta is where we should ideally adjust for the risk to a sector relative to the entire market for all sectors. The average beta across all investments is equal to one. For sectors with above-average risk, the beta will be greater than one. For below-average risk sectors, the beta will be less than one. </p><p>While my firm Boschan Corp.'s music sector research and beta calculations are confidential, <a href="https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/Betas.html">here are Betas by Sector</a> as well as a <a href="https://www.youtube.com/watch?v=XOKIkHQWpDM">video</a> from the Professor himself. Keep in mind, these betas might be used only for investors:</p><p></p><p></p><ul><ul><li>Using the capital asset pricing model</li><li>With diversified portfolios </li></ul></ul><p>Unfortunately, conventional methods for estimating betas remain rooted in historical data. Thus, they fall short in capturing the forward-looking nature of catastrophic risks. Hence, the need for a nuanced approach—one that accounts for the interplay between AI and the music industry, leveraging industry expertise and stakeholder insights to inform risk assessment.</p><p>At Boschan Corp. we undertake rigorous analysis to gauge the extent of AI integration within music companies (i.e., how much music companies are hedging with investments in AI), how much AI companies are investing in music, and we solicit diverse perspectives to ascertain the likelihood and magnitude of AI-induced disruptions ("How likely is it that half of all music consumed by consumers is not artist created by humans in the next ten years?"). </p><p>Also, we can explore the merits of an alternate approach to address catastrophic risk on an asset or company-specific basis (not on a sector-wide basis) with valuations based on two or more cash flow forecasts:</p><p></p><ol style="text-align: left;"><li>Assuming no catastrophe and</li><li>Assuming catastrophic outcome(s)</li></ol><p></p><p>Then, we apply the buyer/investors' risk probability to each scenario and sum the results.</p><p>In this case, how shall an investor estimate probability of the risk posed to the music industry by AI?</p><p>Whether through sector-wide adjustments or asset-specific valuations, the weakness of both methods is the same: How to determine the temporal and qualitative dimensions of catastrophic risk (i.e., probability over time and magnitude of the catastrophe).</p><p>In either case, in confronting the specter of catastrophic AI risks, human expertise remains our most potent weapon in mitigating uncertainty and seizing opportunity amidst disruption.</p><p>For investors navigating the labyrinth of uncertainty, Professor Damodaran's comprehensive resources on betas and risk dynamics serve as invaluable compasses, offering nuanced insights and practical frameworks to navigate uncharted terrain. He and NYU also have made available the following resources:</p><ul style="text-align: left;"><ul><ul><li>2014 (est.) <a href="https://pages.stern.nyu.edu/~adamodar/podcasts/cfspr20/session8slides.pdf">Slides - Beta Fundamentals</a></li><li>2013 (est.) <a href="https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/discrate2.pdf">Slides - Estimating Betas</a></li><li>2017 <a href="https://www.youtube.com/watch?v=Wy1B-ZuHsdA">Video - The Determinants of Betas</a></li><li>2017 <a href="https://www.youtube.com/watch?v=0W3bUiAHVbw">Video - Bottom-Up Betas</a></li><li>2020 <a href="https://www.youtube.com/watch?v=0W3bUiAHVbw">Video - Bottom-Up Betas</a></li><li>2022 <a href="https://www.youtube.com/watch?v=gkYXsuz05Ts">Video - Bottom-Up Betas & Beta Determinants</a></li><li>2022 <a href="https://www.youtube.com/watch?v=YsjrO2leLFI">Video - Regression Betas and Beyond</a></li></ul><ul><li>2019 <a href="https://www.youtube.com/watch?v=nI_vtGf5_Jc">Video - The Many Faces of Risk</a></li><li>2024 <a href="https://www.youtube.com/watch?v=m_wVCnkLn-U">Video - Catastrophic Risks in Business and Investing</a></li></ul></ul></ul><p></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.com10866 Washington Blvd Suite #1205, Culver City, CA 90232, USA34.0147822 -118.4081185.7045483638211536 -153.564368 62.325016036178845 -83.251868tag:blogger.com,1999:blog-2123228235986378478.post-68809644800520933472023-12-12T13:09:00.000-08:002023-12-12T13:09:17.357-08:00Apple Music Podcast: Cedar Boschan on Music Royalties<p>Thank you to "Riches and Rhythms," for having me guest on your podcast. It was a pleasure to speak with Stonebridge financial advisor Tyler Martin and Tristar business manager Peggy Stephens about music royalty audits, IP valuation and AI.</p><p>Link to podcast:<span class="css-1qaijid r-bcqeeo r-qvutc0 r-poiln3" style="background-color: rgba(0, 0, 0, 0.03); border: 0px solid black; box-sizing: border-box; color: #0f1419; display: inline; font-family: TwitterChirp, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif; font-feature-settings: inherit; font-kerning: inherit; font-optical-sizing: inherit; font-size: 15px; font-stretch: inherit; font-variant-alternates: inherit; font-variant-east-asian: inherit; font-variant-numeric: inherit; font-variant-position: inherit; font-variation-settings: inherit; line-height: inherit; list-style: none; margin: 0px; min-width: 0px; overflow-wrap: break-word; padding: 0px; text-overflow: unset; white-space-collapse: preserve;"> </span><a class="css-1qaijid r-bcqeeo r-qvutc0 r-poiln3 r-1loqt21" dir="ltr" href="https://t.co/vwvh69y17L" rel="noopener noreferrer nofollow" role="link" style="background-color: rgba(0, 0, 0, 0.03); border: 0px solid black; box-sizing: border-box; color: #1d9bf0; cursor: pointer; display: inline; font-family: TwitterChirp, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif; font-feature-settings: inherit; font-kerning: inherit; font-optical-sizing: inherit; font-size: 15px; font-stretch: inherit; font-variant-alternates: inherit; font-variant-east-asian: inherit; font-variant-numeric: inherit; font-variant-position: inherit; font-variation-settings: inherit; line-height: inherit; list-style: none; margin: 0px; min-width: 0px; overflow-wrap: break-word; padding: 0px; text-decoration-line: none; text-overflow: unset; white-space-collapse: preserve;" target="_blank"><span aria-hidden="true" class="css-1qaijid r-bcqeeo r-qvutc0 r-poiln3 r-hiw28u r-qvk6io" style="background-color: rgba(0, 0, 0, 0); border: 0px solid black; box-sizing: border-box; color: inherit; display: inline; font-family: inherit; font-feature-settings: inherit; font-kerning: inherit; font-optical-sizing: inherit; font-size: 0px; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-variation-settings: inherit; font-weight: inherit; line-height: 0px; list-style: none; margin: 0px; min-width: 0px; overflow-wrap: break-word; padding: 0px; text-align: inherit; text-overflow: unset; white-space: inherit;">https://</span>apple.co/3uL14Qu</a><span class="css-1qaijid r-bcqeeo r-qvutc0 r-poiln3" style="background-color: rgba(0, 0, 0, 0.03); border: 0px solid black; box-sizing: border-box; color: #0f1419; display: inline; font-family: TwitterChirp, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif; font-feature-settings: inherit; font-kerning: inherit; font-optical-sizing: inherit; font-size: 15px; font-stretch: inherit; font-variant-alternates: inherit; font-variant-east-asian: inherit; font-variant-numeric: inherit; font-variant-position: inherit; font-variation-settings: inherit; line-height: inherit; list-style: none; margin: 0px; min-width: 0px; overflow-wrap: break-word; padding: 0px; text-overflow: unset; white-space-collapse: preserve;"> </span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://t.co/vwvh69y17L" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="474" data-original-width="359" height="517" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSG7pO9mtY73WiqDGoSF-GWakL9poxgmC8DhcmevRRYDoy8fr-3Bi2oIQjDUMBtnJ1WrTXgepSjO5d4gRjC1IWiU8wIWdu1oRXpk3VJcVxWmRe2myN9nSVrGccPF-hAXpv3vTueyVPmvgDWnauNekFtfBcdPbcfZo1ld0KV8Pw0ffCOtwFfNaXEsyoblky/w391-h517/Cedar%20Boschan%20Podcast%20Music%20Royalties.png" width="391" /></a></div><br /><p><br /></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.com10866 Washington Blvd Suite #1205, Culver City, CA 90232, USA34.0147822 -118.4081185.7045483638211536 -153.564368 62.325016036178845 -83.251868tag:blogger.com,1999:blog-2123228235986378478.post-40191075482313254792023-07-14T07:26:00.005-07:002023-07-14T07:26:55.730-07:00The Lien: A Last Resort to Collect on a Debt - Guest Post by Attorney Kevin Casini, Esq.<div class="separator" style="clear: both; text-align: center;"><a href="https://twitter.com/KCEsq" style="margin-left: 1em; margin-right: 1em;" target="_blank"><img alt="Kevin Casini, Esq." border="0" data-original-height="320" data-original-width="240" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhHAqrwjqzOHY0JELmpmVup3Ko5yq3K1gDx7gFR9jiri3TPfRV_kwurJRGh-LjJPV8G4R9uaAN4sPjWL7jbW6WvUOs49wjX75GVAylskbWoGOg_ZKUgbVcJhvJdsFtFMWqW9AyelA5gOuYG_zlLTTwKRaIqZjl3BSCHrZSlgh9DjIHxB7FlOMZPnD8crw/w240-h320/Top%20Attorney%20Kevin%20Casini%20Liens%20Copyright.jpg" title="Top Connecticut Attorney Kevin Casini" width="240" /></a></div><div style="text-align: left;"><i><br />Top Connecticut attorney Kevin Casini, Esq. helps us understand the concept of a lien in the guest post below:<br /><br /></i><span style="font-family: inherit;">Judgment liens are the
final step in collecting on a civil judgment. When a court issues a <a href="https://www.investopedia.com/terms/j/judgement.asp">judgment</a>,
whether by a judge or verdict b<span style="font-family: inherit;">y a jury, it doesn't</span> automatically force the <a href="https://www.investopedia.com/terms/d/debtor.asp">debtor</a> to pay. If the debtor doesn't
pay, it is the responsibility of the <a href=" https://www.investopedia.com/terms/c/creditor.asp">creditor</a> to enforce the
judgment. Most enforcement happens when a creditor finds assets belonging
to the debtor to be taken to satisfy the judgment. This
begins with a judgment lien.<br /></span><span style="font-family: inherit;"><br /></span><span style="font-family: inherit;">A judgment acts like a metaphorical cloud hovering over the
debtor's personal property in the state. A judgment is unenforceable against
personal property until it has been attached. The property can include
bank accounts, stocks, bonds, vehicles, or other equipment</span><span style="font-family: inherit;">.<br /><br /></span><span style="font-family: inherit;">Copyrights
that are registered with the <a href="https://www.copyright.gov/">United States Copyright Office</a> ("USCO") can be liened, through registration at the USCO
of the lien. Unregistered copyrights cannot.<br /></span><span style="font-family: inherit;"> <br /></span><span style="font-family: inherit;">There are different types of liens: consensual, statutory, and judicial. Consensual liens include mortgages and car loans, while <a href="https://www.investopedia.com/terms/m/mechanics-lien.asp">mechanic's liens</a> and judgment liens are examples of statutory and judicial liens. Once attached, they work similarly to consensual liens, allowing the creditor to seize the property to satisfy a judgment.</span></div><p style="text-align: left;"><span style="font-family: inherit;">Some liens can be <a href="https://www.dictionary.com/browse/discharge">discharged</a> too, depending on circumstances. </span></p><ul style="text-align: left;"><li><span style="font-family: inherit;"><a href="https://www.investopedia.com/terms/j/judgment-lien.asp">Judgment liens</a>: If there is no equity in the property to cover the lien, it may be discharged. </span></li></ul><ul style="text-align: left;"><li><span style="font-family: inherit;"><a href="https://www.thebankruptcysite.org/resources/types-liens.htm#:~:text=Like%20voluntary%20liens%2C%20a%20non,involuntarily%2C%20or%20without%20your%20agreement.">Nonconsensual liens</a>: Liens placed on the debtor's property without their consent, such as certain tax liens or mechanic's liens, may be eligible for <a href="https://www.investopedia.com/ask/answers/102814/what-debt-cannot-be-discharged-when-filing-bankruptcy.asp">discharge in bankruptcy</a>. </span></li></ul><ul style="text-align: left;"><li><span style="font-family: inherit;"><a href="https://www.investopedia.com/terms/v/voluntary-lien.asp">Voluntary liens</a>: In some cases, voluntary liens (mortgages, car loans), can be discharged through bankruptcy. The notes riding with these can also be written down pursuant to the <a href="https://www.investopedia.com/terms/f/fairmarketvalue.asp">fair market value ("FMV")</a> of the asset that is taken as <a href="https://www.investopedia.com/terms/c/collateral.asp">collateral</a>. </span></li></ul><span style="font-family: inherit;">
A judgment lien typically extinguishes after 20 years.</span><p></p><p class="MsoNormal" style="text-align: left;"><span style="font-family: inherit;"><o:p></o:p></span></p><p class="MsoNormal" style="text-align: left;"><span style="font-family: inherit;"><o:p></o:p></span></p><p style="text-align: left;"></p><div style="text-align: left;"><span style="font-family: inherit;">To establish a lien on real estate, it must be recorded on the land
records, but the process varies by state. If a judgment lien is
attached to real estate, the judgment continues to accumulate interest at
a higher statutory rate (e.g., 17.5% in the state of Connecticut in the United States) than market savings or mortgage rates,
and the property's value usually increases over time. The lien is either
satisfied through refinance, sale or the property to which it is attached,
or by satisfaction. <br /><br /></span></div><div style="text-align: left;">In some places, the order in which liens are recorded determines their priority. In other cases, certain creditors always have priority, and the government always has priority. The same principles apply to <a href="https://www.investopedia.com/terms/s/security-interest.asp">security interests</a> in personal property. The creditor who perfects their security interest first usually has the highest priority. To perfect a judgment lien, it needs to be attached to property.</div><p style="text-align: left;"></p><div style="text-align: left;"><span style="font-family: inherit;">The way of attachment varies depending on the type of personal
property. The way a judgment attaches to personal property is different from
how a lien attaches to real estate. Real estate is immovable, and
ownership is determined by land records. A judgment lien attaches as
soon as it is recorded in the land records. Personal
property, however, is movable, and there is usually no central registry
for ownership except for automobiles.<br /><br /></span></div><div style="text-align: left;"><span style="font-family: inherit;">Check with an attorney in your state to understand your rights and
responsibilities when it comes to judgment liens. <br /><br /></span><u><span style="font-family: inherit;">Abo</span>ut The Author</u></div><div style="text-align: left;"><i>Kevin Casini Kevin is an attorney and consultant in New Haven where he’s been recognized by New England SuperLawyers™ for his work in civil litigation, copyright, and trademarks, and a music business consultant with his company Ecco Artist Services.</i></div><div style="text-align: left;"><i><br />Kevin is VP of Business and Legal Affairs for RME, (<a href="http://www.rme.com">www.rme.com</a>) the digital-first, modern rights organization that enables fair and accurate payments for creators and rightsholders.<br /></i><i><br />In practice, Kevin has boasted a talented client roster of award-winning, Grammy nominated, gold and platinum certified artists, writers, producers, & DJs, and he teaches copyrights, music law, and entertainment law at Quinnipiac University School of Law. <br /></i><i><br />He has been speaker, moderator, and panelist at conferences from Austin to Boston, and has advised companies, firms, and governmental agencies on case law, new legislation and proposed legislation, and best practices.<br /></i><i><br />Kevin is a member of the Recording Academy, Copyright Alliance, the Americana Music Association and serves on the advisory board of SONA and on the nominating committee of the Boston Music Awards.<br /></i><i><br />He is a graduate of the Berklee College of Music. </i></div><p style="text-align: left;"><i><a href="https://twitter.com/KCEsq">Follow Kevin on Twitter @KCEsq</a></i></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comtag:blogger.com,1999:blog-2123228235986378478.post-38452579227244670082023-06-05T10:02:00.047-07:002023-06-05T10:02:00.137-07:00Bold Journey Magazine Interviews Cedar Boschan<p>I enjoyed recently <a href="https://boldjourney.com/meet-cedar-boschan/" target="_blank">being interviewed by Bold Journey magazine</a>, because it gave me time to reflect on one of the key skills needed to be a top forensic accountant: communication. </p><div class="separator" style="clear: both; text-align: center;"><a href="https://boldjourney.com/meet-cedar-boschan/" style="margin-left: 1em; margin-right: 1em;" target="_blank"><img border="0" data-original-height="430" data-original-width="486" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhvhoBZocxIX4sjDqL7kAmkrJq9YQRS1c8AUxe_RUtC0BgblwKZ9C4HE7mSVWN6457C-H77wyLdtxIsnmVB-CIhCExhC8VrVmMCWZ98cbojbtFkmY4Y67KzDwZUl9OnuAQaH2F6zJ0QYh9kEULH1w9zN4x3JP4mAYtQJuyOfe1ZBsIIyPaPY1qMVXOQbg/w320-h283/Interview%20With%20Expert%20Witness%20Accountant%20Cedar%20Boschan.png" title="Interview of Top Expert Witness Cedar Boschan" width="320" /></a></div><br /><p>I truly appreciate the mentors and consultants who helped me on my journey to be a better communicator, especially Fred Wolinsky, CPA, Jennifer Wilson, and David Zyla.</p><p>If you are interested in joining my team at Boschan Corp., or engaging our firm, you will find that we accord greater emphasis on communication than other accounting firms. <a href="https://www.boschan.com/jobs" target="_blank">Click here to apply</a>.</p><p>To all readers: What communication techniques, tactics and skills do you think are under-or-over-rated when it comes to accounting services?</p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.com10866 Washington Blvd Suite #1205, Culver City, CA 90232, USA34.0147822 -118.4081185.7045483638211536 -153.564368 62.325016036178845 -83.251868tag:blogger.com,1999:blog-2123228235986378478.post-67612981874447269492023-06-03T20:38:00.010-07:002023-06-04T10:59:26.114-07:00Exploring the Delayed Discovery Doctrine, Doctrine of Estoppel, and their Implications on Contesting and Objecting to Incoming Profit Participation Accountings and Royalty Statements<p><br /></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="327" src="https://www.youtube.com/embed/6GcGjMNspoc" width="484" youtube-src-id="6GcGjMNspoc"></iframe></div><br /><p><br /></p><p><span style="background-color: #f7f7f8; font-family: inherit;">Your favorite royalty auditor and forensic accountant is here to make sure California attorneys know of the </span><span style="background-color: #f7f7f8; color: #374151; font-family: inherit; white-space-collapse: preserve;">potential application of the delayed discovery doctrine and the doctrine of estoppel in contesting incoming profit participation accountings or royalty statements, notwithstanding contractual or statutory limitations. I believe such legal doctrines, along with the relevant cases I will highlight, provide compelling grounds for certain creative and licensor clients to challenge such accountings or statements.</span></p><ol style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: #f7f7f8; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; color: #374151; counter-reset: item 0; display: flex; flex-direction: column; list-style-image: initial; list-style-position: initial; margin: 1.25em 0px; padding: 0px 0px 0px 1rem; white-space-collapse: preserve;"><li style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; margin: 0px; padding-left: 0.375em;"><span style="font-family: inherit;">Delayed Discovery Doctrine:
The delayed discovery doctrine allows for the tolling or extension of limitations periods when a plaintiff could not have reasonably discovered the existence of a claim. It recognizes that in certain situations, a plaintiff may be unaware of the facts giving rise to a cause of action until a later date.</span></li></ol><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: #f7f7f8; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; color: #374151; margin: 1.25em 0px; white-space-collapse: preserve;"><span style="font-family: inherit;">By applying the delayed discovery doctrine, our clients may be able to argue that they were not reasonably aware of the inaccurate or improper profit participation accountings/statements until a later point, beyond the contractual or statutory limitations. This would provide them with an opportunity to contest and seek redress for the extended period covered by the accountings or statements.</span></p><ol start="2" style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: #f7f7f8; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; color: #374151; counter-reset: item 0; display: flex; flex-direction: column; list-style-image: initial; list-style-position: initial; margin: 1.25em 0px; padding: 0px 0px 0px 1rem; white-space-collapse: preserve;"><li style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; margin: 0px; padding-left: 0.375em;"><span style="font-family: inherit;">Doctrine of Estoppel:
The doctrine of estoppel, in the context of profit participation accountings and/or royalty statements, can block entertainment companies and licensees from imposing statutory or contractual limitations on audit or other damages claims, if they have previously acted in a manner inconsistent with the position that such claims shall be limited. Estoppel arises when a party's prior conduct or representations reasonably induced another party to rely on those actions to their detriment.</span></li></ol><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: #f7f7f8; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; color: #374151; margin: 1.25em 0px; white-space-collapse: preserve;"><span style="font-family: inherit;">Applying the doctrine of estoppel, our clients may argue that a company's past conduct, representations, or acceptance of actions misled them into believing their rights were being properly accounted for, and as a result, they refrained from auditing or taking legal action within the contractual or statutory limitations periods. This would potentially estop the other party from invoking those limitations to shield themselves from our clients' challenges.</span></p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: #f7f7f8; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; color: #374151; margin: 1.25em 0px; white-space-collapse: preserve;"><span style="font-family: inherit;">Relevant Cases:
I would like to draw your attention to two notable cases that support certain arguments for delayed discovery and motions to estop a company from imposing limitations on your clients audit and damages claims:</span></p><ol style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: #f7f7f8; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; color: #374151; counter-reset: item 0; display: flex; flex-direction: column; list-style-image: initial; list-style-position: initial; margin: 1.25em 0px; padding: 0px 0px 0px 1rem; white-space-collapse: preserve;"><li style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; margin: 0px; padding-left: 0.375em;"><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; margin: 0px;"><span style="font-family: inherit;">Weatherly v. Universal Music Pub. Group, 23 Cal. Rptr. 3d 157, 125 Cal. App. 4th 913 (Ct. App. 2004).
This case showed that conducting an audit is not necessary to reach the level of diligence required to make delayed discovery claims.
</span></p></li><li style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; margin: 0px; padding-left: 0.375em;"><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; margin: 0px;"><span style="font-family: inherit;">Wind Dancer Production Group v. Walt Disney Pictures, 10 Cal. App. 5th 56, 215 Cal. Rptr. 3d 835 (Ct. App. 2017):
This case involves a dispute over profit participation accountings and the application of the doctrine of estoppel. It establishes that a party's acceptance, authorization, or prior conduct can estop them from using contestability clauses and written amendment clauses to defend against claims challenging the accuracy of profit participation statements, thereby allowing for a longer contestability period.</span></p></li></ol><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: #f7f7f8; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; color: #374151; margin: 1.25em 0px; white-space-collapse: preserve;"><span style="font-family: inherit;">Conclusion:
Given the potential application of the delayed discovery doctrine and the doctrine of estoppel, along with the persuasive precedent set by the mentioned cases, it is crucial that you, as counsel to profit participants or royalty recipients, thoroughly explore these legal doctrines to contest the incoming profit participation accountings/statements for periods longer than the contractual or statutory limitations allow. By leveraging these arguments, we can effectively advocate for our clients' rights and pursue a fair resolution.</span></p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: #f7f7f8; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; color: #374151; margin: 1.25em 0px; white-space-collapse: preserve;"><span style="font-family: inherit;">I would greatly appreciate the opportunity to discuss these matters further with you. Call my office to clear conflicts for a consultation (424) 248-8866.</span></p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: #f7f7f8; border: 0px solid rgb(217, 217, 227); box-sizing: border-box; color: #374151; margin: 1.25em 0px; white-space-collapse: preserve;">And, if you know of other important cases, please comment!</p><p><i style="background-color: white; color: #222222;"><span style="font-family: inherit;"><br /></span></i></p><p><span style="font-family: inherit;"><br /></span></p><p><br /></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.com10866 Washington Blvd Suite #1205, Culver City, CA 90232, USA34.0147822 -118.4081185.7045483638211536 -153.564368 62.325016036178845 -83.251868tag:blogger.com,1999:blog-2123228235986378478.post-15139746026651842922023-05-29T15:14:00.005-07:002023-06-04T11:01:38.054-07:00Understanding Cumulative Profit Participation Accountings<p></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dwDZ6gXMVeZRLsGAXSyMoQsDco2EQ8_TVc3hum3E90jMgx2jrXnJdEfojBU4ZRvBzCmGubi-WdSYp7tDVc2_Q' class='b-hbp-video b-uploaded' frameborder='0'></iframe></div><br /><span face="Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"" style="background-color: #f7f7f8; color: #374151; font-size: 16px; white-space: pre-wrap;"><br /></span><p></p><p><span style="background-color: #f7f7f8; color: #374151; font-size: 16px; white-space-collapse: preserve;">Cumulative accountings refer to a method of calculating financial transactions that spans over an extended period. Instead of treating each individual transaction separately, cumulative accountings aggregate various transactions, creating a comprehensive record. This approach is commonly employed in situations where it is impractical or inefficient to account for each transaction individually.</span></p><p><span face="Söhne, ui-sans-serif, system-ui, -apple-system, "Segoe UI", Roboto, Ubuntu, Cantarell, "Noto Sans", sans-serif, "Helvetica Neue", Arial, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"" style="background-color: #f7f7f8; color: #374151; font-size: 16px; white-space: pre-wrap;">It is the traditional approach for film and TV industry profit participation accountings as well as joint venture, certain merchandise statements and/or 360-degree accountings in the music and games industries.</span></p><p><span face="Söhne, ui-sans-serif, system-ui, -apple-system, Segoe UI, Roboto, Ubuntu, Cantarell, Noto Sans, sans-serif, Helvetica Neue, Arial, Apple Color Emoji, Segoe UI Emoji, Segoe UI Symbol, Noto Color Emoji" style="color: #374151;"><span style="background-color: #f7f7f8; white-space: pre-wrap;">See the below Screenshot for an example of a cumulative accounting (for a film to a producer):</span></span></p><p><span face="Söhne, ui-sans-serif, system-ui, -apple-system, Segoe UI, Roboto, Ubuntu, Cantarell, Noto Sans, sans-serif, Helvetica Neue, Arial, Apple Color Emoji, Segoe UI Emoji, Segoe UI Symbol, Noto Color Emoji" style="color: #374151;"><span style="background-color: #f7f7f8; white-space: pre-wrap;"><br /></span></span></p><p><span face="Söhne, ui-sans-serif, system-ui, -apple-system, Segoe UI, Roboto, Ubuntu, Cantarell, Noto Sans, sans-serif, Helvetica Neue, Arial, Apple Color Emoji, Segoe UI Emoji, Segoe UI Symbol, Noto Color Emoji" style="color: #374151;"></span></p><div class="separator" style="clear: both; text-align: center;"><span face="Söhne, ui-sans-serif, system-ui, -apple-system, Segoe UI, Roboto, Ubuntu, Cantarell, Noto Sans, sans-serif, Helvetica Neue, Arial, Apple Color Emoji, Segoe UI Emoji, Segoe UI Symbol, Noto Color Emoji" style="color: #374151;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-l1YP_gL7QcwA12BKXB4fSCBFyUxKIKL9utwiLi-MT_ftLTc2H1PjiV1ixSF3wi0XFN3nJ2F5eNJgbdlmVfVDuSiTj3bUa9gcHX351zHn1Q7OQ4uuOto0l6xUG9_CPXtnitQ9lHIZ6zgkSoH_SagQkmvCCG6Qj4trRGh_PYAwAjldfYLoSO33bJJHUg/s411/SAMPLE%20CUMULATIVE%20FILM%20PROFIT%20PARTICIPATION%20STATEMENT%20FROM%20BOSCHAN%20CORP..png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="387" data-original-width="411" height="390" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-l1YP_gL7QcwA12BKXB4fSCBFyUxKIKL9utwiLi-MT_ftLTc2H1PjiV1ixSF3wi0XFN3nJ2F5eNJgbdlmVfVDuSiTj3bUa9gcHX351zHn1Q7OQ4uuOto0l6xUG9_CPXtnitQ9lHIZ6zgkSoH_SagQkmvCCG6Qj4trRGh_PYAwAjldfYLoSO33bJJHUg/w415-h390/SAMPLE%20CUMULATIVE%20FILM%20PROFIT%20PARTICIPATION%20STATEMENT%20FROM%20BOSCHAN%20CORP..png" width="415" /></a></span></div><span face="Söhne, ui-sans-serif, system-ui, -apple-system, Segoe UI, Roboto, Ubuntu, Cantarell, Noto Sans, sans-serif, Helvetica Neue, Arial, Apple Color Emoji, Segoe UI Emoji, Segoe UI Symbol, Noto Color Emoji" style="color: #374151;"><br /><span style="background-color: #f7f7f8; white-space: pre-wrap;">To learn about profit participation audits, <a href="https://www.boschan.com/profit-participation-audits">please click here</a>.</span></span><p></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.com10866 Washington Blvd Suite #1205, Culver City, CA 90232, USA34.0147822 -118.4081185.7045483638211536 -153.564368 62.325016036178845 -83.251868tag:blogger.com,1999:blog-2123228235986378478.post-85609909468953190242023-05-21T18:20:00.004-07:002023-06-04T11:04:04.159-07:00Audit and Objection Notices May Be Coming Due Due this Summer<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj4kFihW-MsH_FI7xbSiDVdp4tPWjzjYAbuMdKufkxSu8-rQoBpJ1QsukTxG-YsMFXx373nA_GCa0_nw9IcXs8EoRwOdVnnNq1X6UFohE5v6mLmEe9Iv_AQn60wetoO_hgQ2-nTzGPWYWbRNXnJSS7ZANT6r9H17RWRmVxzJwXlHjlhdRE2tHNdICSxlQ/s1500/2023%20Audit%20Objection%20Notices.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="500" data-original-width="1500" height="107" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj4kFihW-MsH_FI7xbSiDVdp4tPWjzjYAbuMdKufkxSu8-rQoBpJ1QsukTxG-YsMFXx373nA_GCa0_nw9IcXs8EoRwOdVnnNq1X6UFohE5v6mLmEe9Iv_AQn60wetoO_hgQ2-nTzGPWYWbRNXnJSS7ZANT6r9H17RWRmVxzJwXlHjlhdRE2tHNdICSxlQ/s320/2023%20Audit%20Objection%20Notices.png" width="320" /></a></div><p><br /></p>If your client's accountings are rendered 90 days following the end of the semiannual period ended June 30, 2023, you usually must render a notice of objection prior to September 30 in order to reserve your client's right to audit his/her/its 2020 H1 statement. Confusing? Yes, it is very confusing!<p></p><p>Call my firm Boschan Corp. for help at (424) 248-8866 or learn more about our royalty audits by <a href="https://www.boschan.com/royalty-audits">clicking here</a>. Please do not wait until September. Your client's rights could expire sooner, depending on the relevant contractual language and statutes.</p><p><br /></p><p><br /></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comtag:blogger.com,1999:blog-2123228235986378478.post-51434372797208425132022-09-11T11:20:00.002-07:002022-09-11T11:20:15.862-07:00Most Favored Nations Provisions & Damages<p>What is a "most favored nations" provision in a contract? Why are they important? What happens if they're violated? These are questions that many attorneys may be asking themselves, and for good reason. Most favored nation provisions can have a significant impact on royalty and profit participation calculations, especially in entertainment and intellectual property licensing deals, as well as investment deals and international treaties, to name a few examples. In this blog post, we'll take a closer look at what most favored nation provisions are and how they can lead to audit or other damages claims.</p><p><u><b>What is a "Most Favored Nations" Provision in a Contract?</b> </u></p><p>A "most favored nation" provision (also known as an "MFN") is a clause that is included in contracts to ensure that one party receives the same treatment as other parties which may have leverage to negotiate more favorable terms. The "most favored nations" provision in a contract is based on the principle of equality. It is designed to promote fairness and to prevent one party from taking advantage of parties that may not know the extent of the most favorable terms it can negotiate. MFNs are commonly used in international trade agreements, but can also be found in other types of contracts, such as investment agreements, licenses, and other agreements covering for musical works and sound recordings.</p><p>With respect to licensing transactions, the MFN clause protects a licensor from receiving less favorable terms than other licensors. For example, if Licensor A has an MFN clause in its contract with Licensee B, and Licensee B separately gives Licensor C more favorable terms, then Licensor A is entitled to receive the same, more favorable terms as Licensor C. The same principles can be applied to other sorts of transactions including investment agreements and treaties between nations (from where the term "Most Favored Nations" originates).</p><p><u><b>Why are Most Favored Nations Clauses Important?</b></u></p><p>By requiring that all parties be treated equally, the most favored nation provision helps to level the playing field and to protect the interests of all involved.</p><p>The purpose of most favored nation provisions is to encourage free and fair trade - and encourage parties to feel comfortable signing off on a license or other contract - by ensuring that all trading partners are treated equally and by mitigating the risk that a more favorable deal could have been negotiated. Most favored nations clauses can also be used as a tool to pressure licensors to lower their royalty rates (or pressure countries to lower their trade barriers, such as tariffs, and improve their labor and environmental standards). Most favored nation provisions are an important part of the global trading system and help to promote free and fair trade.</p><p><u style="font-weight: bold;">What Happens if The MFN Clause is Violated? </u><br /><br />When a most favored nations clause is contravened, it can have a number of serious consequences. First, it can damage the relationship between the parties involved, creating an atmosphere of suspicion and mistrust, making future agreements more difficult to negotiate. It can even lead to economic retaliation. As an example concerning treaties between nations, countries who discover a counterparty failed to honor the MFN provision in a treaty may impose punitive tariffs or other trade barriers in response to such breach. As another example, music publishers may refuse to grant reduced rate licenses - or any licenses - to a licensee who is found to have double crossed the licensor by failing to increase royalty rates in accordance with the terms of the MFN clause.</p><p>Second, when a "most favored nation" provision is contravened, the party (e.g., a licensor or country) which suffered less favorable terms than agreed is damaged and can bring a law suit, enforce contractual trade sanctions, or take other enforcement measures to claim actual and possibly penalize the licensee or other party that did not honor the MFN agreement. (Actual damages are amounts to make a party "whole" for the injuries it sustained as a result of a contractual violation. In addition, sometimes courts award punitive damages to punish or penalize the party responsible for the violation, and many contracts provide for penalties in the event of a breach).</p><p><b><u>How to Enforce "Most Favored Nations" Provisions<br /></u></b><br />MFN clauses are typically identified through an audit process (one reason why it is important to carefully negotiate the audit clauses in your agreements), although violations can be disclosed in other ways. For example, if two parties are in litigation, as part of the discovery process documents produced by a party may disclose the terms of its agreements with other parties, allowing MFN clause compliance to be evaluated. As another example applicable to international trade agreements between nations, a government official or designated third party reviews individual countries' customs data to ensure that it is providing the same benefits to all trading partners with MFN status. </p><p>If an audit finds non-compliance with an MFN provision, or such non-compliance is disclosed in another way, I find in my experience working with legal counsel that the best approach is to first try to settle the claims through diplomacy and/or the audit and breach notice provisions set forth in the agreement. For example, as an auditor, my audit report will disclose my findings and the legal team will demand payment for the damages I identify in the audit report. Given that may failures to comply with most favored nations clauses are the result of inadequate royalty reporting systems, non-compliance is often unintended, and this gives the parties a chance to fix the problem and maintain a business relationship.</p><p>However, if the party that failed to comply with an MFN clause is uncooperative, enforcement can be challenging. Generally, the damaged party will need to pursue legal action such as arbitration or a trial in court or a tribunal in order to procure a legal order to the violating party to pay damages and, potentially, other consequences (e.g., termination of the underlying contract).</p><p><b><u>Actions for Attorneys to Take to Help Clients:</u></b></p><p>If you have a client who has suffered damages as the result of an MFN violation, please call my consulting and forensic accounting firm, <a href="http://www.boschan.com" target="_blank">Boschan Corp.</a>, at (424) 248-8866. We have experts on staff who can help you determine (based on the available information or through auditing or litigation support) whether your client may have a viable damages claim and, if so, what that claim might be worth. Better yet, when you are negotiating your clients' contracts, it can be prudent to get our feedback on some of the language including the audit provision and definitions. Please don't hesitate to contact us to take advantage of our expertise in most favored nations provisions, audits and damages claims. Thank you for reading.</p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.com10866 Washington Blvd Suite #1205, Culver City, CA 90232, USA34.0147822 -118.4081185.7045483638211536 -153.564368 62.325016036178845 -83.251868tag:blogger.com,1999:blog-2123228235986378478.post-87578292976365626432022-04-14T12:38:00.006-07:002022-04-14T12:42:13.631-07:00Damages and Other Considerations when Bringing a Copyright Infringement Claim Before the USA's New Copyright Claims Board<p><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Some barriers to entry in bringing or defending a copyright infringement claim in federal court include costs and the requirement for timely registration.</span></span></p><p><span style="color: #1e293b; font-size: 17.5px; white-space: pre-wrap;">Concerning costs, the legal and expert expenses of federal copyright infringement lawsuits have made it difficult for plaintiffs and defendants who can not afford to spend a minimum of tens or hundreds of thousands of dollars, especially given that experts generally cannot be compensated on a contingent basis. (Further, in diversity actions, the minimum amount in controversy required to invoke the jurisdiction of the federal courts is $75,000.)</span></p><p><span style="color: #1e293b; font-size: 17.5px; white-space: pre-wrap;">The US's CASE Act was designed to provide an avenue for plaintiffs to enforce their copyrights at lower cost and for defendants based in the United States to limit their copyright infringement damages to no more than $30,000 per proceeding by creating a so-called "small claims court" (technically a "Copyright Claims Board") for copyright infringement claims. While there seem to be some big challenges in effecting the CASE Act's Copyright Claims Board's commencement of hearings, especially its reliance on law school programs and students who may be unwilling to participate, when it is up an running (hopefully later this year), I am optimistic that it may be a good option for potential clients who can't afford to retain legal counsel or experts and defendants who wish to limit their liability.</span></p><p><span style="color: #1e293b; font-size: 17.5px; white-space: pre-wrap;">The second barrier to bringing a copyright infringement claim in federal court is the requirement that the infringed work (if it is a U.S. work) was registered timely with the Library of Congress (i.e., prior to the infringement or within three months after its publication). If the work was not registered timely (and it is not a foreign work), the plaintiff cannot bring a claim in federal court. However, it can make a claim before the Copyright Claims Board newly established by the CASE Act. </span></p><p><span style="color: #1e293b; font-size: 17.5px; white-space: pre-wrap;">In any case, keep in mind that, the CASE Act process is voluntary; once a claim is filed, defendants have a sixty day period to opt-out. This method is not available to plaintiffs if the defendant is a federal or state government or a foreign entity, or for claims previously established in pending cases. Therefore, it may not be a proper venue for many cases, even before considering the damages limitations described below.</span></p><p><span style="color: #1e293b; font-size: 17.5px; white-space: pre-wrap;">The maximum damages that the CASE Act's Copyright Claims Board can award are as follows:</span></p><p></p><ul style="text-align: left;"><li><span style="color: #1e293b; font-size: 17.5px; white-space: pre-wrap;">If the plaintiff seeks actual damages, up to US $30,000 per work may be awarded (subject to the limit of US $30,000 per proceeding, meaning that if a plaintiff proved in one case covering multiple works actual damages in excess of US $30,000 for each work claimed, the plaintiff would only be entitled to a maximum of US $30,000).</span></li><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">If the plaintiff instead seeks statutory damages, awards are limited to US $15,000 per work and US $30,000 per proceeding.</span></span></li><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">If the Copyright Claims Board finds that the copyrights claimed were not timely registered, the maximum damages mentioned above are halved to $7,500 per work and $15,000 per claim. </span></span></li><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Claims under $5,000 are subject to different procedures, which are currently being established.</span></span></li><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">The Copyright Claims Board may award reasonable costs and attorneys’ fees for bad faith conduct, which is capped at $5,000 for parties represented by attorneys and $2,500 for pro se claimants.</span></span></li></ul><p></p><p><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Also worthy of your consideration when selecting the proper venue to bring a copyright infringement claim is that t</span></span><span style="color: #1e293b; font-size: 17.5px; white-space: pre-wrap;">he Copyright Claims Board can not grant an injunction, but it can approve an agreement between the parties to cease activities as part of its final determination.</span></p><p><span style="color: #1e293b; font-size: 17.5px; white-space: pre-wrap;">This may be the best option for clients who can't afford your (or our) services, or who failed to timely register their copyrights, although, since the system is entirely untested and unproven, I would hesitate to direct one to bring or defend a case before the Copyright Claims Board until we have seen sample outcomes. The website to file a claim with the Copyright Claims Board just launched this month at <a href="https://ccb.gov/">https://ccb.gov/</a>.</span></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comtag:blogger.com,1999:blog-2123228235986378478.post-54667437800487215122022-04-04T13:06:00.002-07:002022-04-04T13:10:19.767-07:00Copyright Infringement Claims Step #1: Identify the Works Infringed<p><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Copyright infringement is a serious offense that can result in significant damages. One common mistake in copyright cases is that a complaint has not properly identified all of the works infringed, or the complaint identifies a plaintiff who has no standing to bring a claim. Further, in order to estimate your or your client's potential liabilities or amount of money a client may be entitled to receive, counsel should first identify the copyrighted works that have been infringed. This can be tricky, but with the help of this post, you should be able to do it. </span></span></p><p><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Counsel should consider the multiple categories copyrights that may or may not have been infringed. For example, in a music case, a complaint may focus on a singular claim, but reference multiple copyrights (e.g., "song" and "record" - which are separate works), including:</span></span></p><p></p><ol style="text-align: left;"><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">The specific underlying musical or literary work (i.e., the composition, song, or words)</span></span></li><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Sound recordings of the underlying work</span></span></li><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Audiovisual recordings of the underlying music or literary work and/or sound recordings</span></span></li><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Album artwork</span></span></li><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Trademarks and/or rights of publicity (we won't get into this because it is beyond the scope of copyright infringement damages, but at times there are other damages of concern which are in addition to copyright infringement claims).</span></span></li></ol><p></p><p><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Given that separate rights are accorded to each of the above examples, the parties will need to investigate authorship and ownership of all of the potential rights infringed before concluding to which works the plaintiff has standing to bring damages and other legal claims. At minimum:</span></span></p><p></p><ul style="text-align: left;"><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Procure or create a list of works potentially copied, including dates of creation, publication, renewal/extension, grant termination notification and grant termination, if applicable (to make sure the rights have not fallen into the public domain and in fact the chain of title supports the plaintiff's standing to make a claim)</span></span></li><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Obtain a copy of the infinged work(s) that were potentially copied (besides understanding what category of work(s) were copied, it may be useful later, in investigating whether the nature of an infringement was willful, to note whether the original work bore any copyright notices)</span></span></li><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Examine examples of the potentially infringing copies to identify which works were in fact copied (for example, in a musical case, were both the composition and the recording copied, or was it solely the composition which was re-recorded?)</span></span></li><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Obtain copies of all available agreements covering and notices of intent to use the works potentially copied. If the agreements were verbal, ask questions to understand the intention of the agreement and what consideration was exchanged and actions were taken to support the claims of such intentions.</span></span></li><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">If the agreement mentions that the work is a "work-for-hire," analyze whether the legal criteria were technically met for the work to be deemed a work for hire as defined in 17 U.S.C. § 101 (because it is not a work-for-hire merely because an agreement states so). </span></span></li><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Search the Internet to identify prior public copyright claims and uses</span></span></li><li><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Search for and obtain records of copyright registration, copyright grant termination notices. In the United States, the Copyright Office this year launched the Copyright Public Records System (CPRS) pilot, which will provide enhanced search capabilities as part of its modernization efforts. To participate in the pilot program and gain access to the latest search tools, users must attend a webinar, which can be found here.</span></span></li></ul><p></p><p><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">While we do frequently assist legal counsel with such investigation, there are legal experts in chain-of-title research, so this may be something best outsourced to a specialist if you are unfamilliar with it.</span></span></p><p><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">If you are counsel to one or more plaintiffs, list the correct entities as the plaintiffs in your complaint, including any companies owned by your client(s), which may hold some of the relevant rights. Unfortunately for plaintiffs with loan-out companies, there may be certain drawbacks if the plaintiff is an entity as opposed to an individual.</span></span></p><p><span style="color: #1e293b;"><span style="font-size: 17.5px; white-space: pre-wrap;">Typically, either our engagement stops here because we learn that a plaintiff has no standing to make a copyright infringement claim, or the scope of the matter multiplies if we determine that the number of works infringed was greater than the plaintiff originally identified.</span></span></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comtag:blogger.com,1999:blog-2123228235986378478.post-84834822519777094842022-03-17T09:51:00.007-07:002022-03-17T12:15:13.542-07:00I Love My Job<p><span face=""Inter var", ui-sans-serif, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", Arial, "Noto Sans", sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"" style="color: #1e293b; font-family: inherit; font-size: 17.5px; white-space: pre-wrap;">There are many different aspects of royalty accounting and auditing that make it a highly rewarding profession. To start, royalty accountants and auditors get to work with some of the most creative people in the world - musicians, songwriters, and other music industry professionals - and the greatest IP attorneys of all time.</span></p><p><span face=""Inter var", ui-sans-serif, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", Arial, "Noto Sans", sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol", "Noto Color Emoji"" style="color: #1e293b; font-family: inherit; font-size: 17.5px; white-space: pre-wrap;"><br /></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjFenEcG6vViLaLl0PU74Bs-IZy_3K3JSafyVuNBlgyc69l3Yra_CkP8gfk5gU2cCM3JiECwE7CjgGIYuKd6cBmUjzDSLqdAlTUGMv9t0ywf2C2p0kc3V8Ye62RQ55hOwU0esqnKWM6wTiL4c1EQqv7LzfBAQAc-qO8XXhs8rts1iPoRGN91kbdQvDKYg=s1080" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: inherit;"><img border="0" data-original-height="906" data-original-width="1080" height="268" src="https://blogger.googleusercontent.com/img/a/AVvXsEjFenEcG6vViLaLl0PU74Bs-IZy_3K3JSafyVuNBlgyc69l3Yra_CkP8gfk5gU2cCM3JiECwE7CjgGIYuKd6cBmUjzDSLqdAlTUGMv9t0ywf2C2p0kc3V8Ye62RQ55hOwU0esqnKWM6wTiL4c1EQqv7LzfBAQAc-qO8XXhs8rts1iPoRGN91kbdQvDKYg=s320" width="320" /></span></a></div><span style="font-family: inherit;"><br /></span><p style="--tw-border-opacity: 1; --tw-ring-color: rgba(0,38,234,0.5); --tw-ring-inset: var(--tw-empty, ); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-shadow: 0 0 transparent; border-color: rgba(226,232,240,var(--tw-border-opacity)); border-style: solid; border-width: 0px; box-sizing: border-box; color: #1e293b; counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-size: 17.5px; margin: 1.2em 0px; white-space: pre-wrap;"><span style="font-family: inherit;">No two days are ever the same in this line of work, but when our team gets messages like the above from clients, it is a golden shining moment for the professionals at our firm, <a href="http://www.boschan.com" target="_blank">Boschan Corp.</a></span></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comtag:blogger.com,1999:blog-2123228235986378478.post-42724481097201093042022-03-01T18:30:00.005-08:002022-03-01T18:32:47.729-08:00My Accounting Firm's Values<p>Years ago in "partner training," <b>Jennifer Wilson</b> of <b><a href="https://convergencecoaching.com/" target="_blank">Convergence Coaching</a></b> taught me how a values-based organization can provide meaning, empowerment, belonging and success to the next generation of professionals, as well as firm clients. <a href="https://www.journalofaccountancy.com/videos/retaining-top-talent-at-cpa-firms.html" target="_blank">See this clip of Wilson here, at the Journal of Accountancy</a>.</p><p>Wilson's lessons have led my accounting practice to many successes. I can't recommend Convergence Coaching's services enough to all professional firms including law practices and CPA firms.</p><p>But this post is to share with potential new employees that which my current team at Boschan Corp. values, so that you can asses whether you see <u>your</u> values mirrored:</p><p></p><ul style="text-align: left;"><li><b>Accountability</b> - We work as a team to support one another in stretching to reach the <b>highest standards</b> possible and rewarding great results. These high standards garner our firm respect, to the benefit of clients.<br /><br /></li><li><b>Appreciation</b> - We regularly praise team members for their impressive accomplishments in reaching or setting standards, and we are always looking for innovative ways to show our profound appreciation for <b>better execution</b> and results. Please share your suggestions in the comments.<br /><br /></li><li><b>Communication</b> - Our success depends on <b>courageous communication </b>and we are committed to sharpening our communication skills continuously, from participating in Toastmasters to improving our client reports (a current challenge).<br /><br /></li><li><b>Growth </b>- Beyond our firm's sales growth, we make <b>personal development</b> a priority in our daily work schedules and benefits structure. If our people aren't cared for, strong and healthy, our firm won't be either.<br /><br /></li><li><b>Profitability</b> - We are implementing a profit sharing program this year. As Boschan Corp. performs better and better, it is due to the <b>excellence</b> of our fine team and they shall share in the rewards!</li></ul><p></p><p>If you attended a great masters-level accounting program and "being the best" at what you do is important to you, please call Ms. Nguyen at Boschan Corp. at (424) 248-8866 to inquire about joining the team.</p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comtag:blogger.com,1999:blog-2123228235986378478.post-21139132233327365472022-02-22T11:01:00.003-08:002022-03-01T16:05:26.146-08:00Most Favored Nations Damages Claims<p><span face="Calibri, sans-serif" style="font-size: 12pt;">During my decades of experience, I have made thousands of audit claims in connection with so-called “MFN” (i.e., Most Favored Nations) clauses.</span></p><p><span face="Calibri, sans-serif" style="font-size: 12pt;">As examples, many mechanical reproduction licenses for musical works and film profit participation agreements with talent contain MFN clauses, as do many
licensing and other agreements. As part of certain royalty audits, it is my job to quantify damages for non-compliance with this standard agreement provision.</span></p><p><span face="Calibri, sans-serif" style="font-size: 12pt;">Although counterparties cooperate
to various degrees, my approach is generally to request the information – such
as agreements with third parties, rate files and accountings - in order to
ascertain whether a counterparty has complied with its commitment to pay rates
to our firm's client(s) that are equally favorable compared to those agreed or paid
to other relevant parties. If my team and I find that a counterparty failed to comply with
a most favored nations provision, we utilize actual or estimated rates to
quantify reportable royalties from which we deduct royalties reported (or
claimed elsewhere in our audit or expert report).</span></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comtag:blogger.com,1999:blog-2123228235986378478.post-12715013316791611992022-02-17T14:48:00.002-08:002022-02-17T14:48:43.372-08:00How long does a royalty audit take?<p>Most royalty audits take greater than one year to complete and settle, but, once in a while, an audit takes less than a year.</p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comtag:blogger.com,1999:blog-2123228235986378478.post-31915649898706506682022-02-11T22:03:00.005-08:002022-02-11T22:11:19.970-08:00Why Your Forensic Accountant May Not Provide Services on a Contingency Basis (i.e., Compensated on a Percentage or Commission of Client Recoveries)As a forensic accountant, I almost never perform work on a contingency or deferred fee basis for several reasons, including:<div><ol style="text-align: left;"><li>It introduces some apparent conflicts (e.g., whether we take an aggressive approach for short term gains at the expense of a profitable counterparty-client relationship)... not to mention, who is our client anyway? It is often not one of the parties to a case.</li><li>It often compromises our ability to provide timely service since we have to prioritize other work to ensure we have the cash to pay our employees for their work</li><li>Our work will likely be inadmissible in court since contingency accountants or auditors have a financial stake in the outcome of the case </li><li>For most of our clients, because they have a great deal of assets at stake, usually it is most cost-effective to engage us on our standard hourly basis</li><li>On the other hand, it is not profitable for us to accept very small contingency matters</li><li>There are lenders to clients who need to borrow money to afford legal costs - search "litigation financing" to learn more about this. </li></ol>If this fee structure doesn’t work for you, I completely understand. It does not work for everyone.</div>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comtag:blogger.com,1999:blog-2123228235986378478.post-82380690529961515272022-01-12T03:58:00.002-08:002022-01-12T03:58:44.244-08:00Looking for my Successor as Treasurer/CFO of Roar As OneAre you interested in a volunteer opportunity to make a difference in people's lives by using your accounting skills? At Roar As One, we have a role with a low time commitment in exchange for great board service and CFO experience serving 501 (c) (3) nonprofit.
If you are interested, please contact Huyen Nguyen at Boschan Corp. at 424-248-8866.Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comtag:blogger.com,1999:blog-2123228235986378478.post-74711068207214176522021-11-23T10:01:00.002-08:002021-11-23T10:01:47.899-08:00My 9-Year-Old on NFTs<blockquote class="twitter-tweet"><p lang="en" dir="ltr">My 9-year-old saw I was reading an article about <a href="https://twitter.com/hashtag/NFTs?src=hash&ref_src=twsrc%5Etfw">#NFTs</a> and she said, "NFTs are stupid. You can just screen shot it."</p>— Cedar Boschan (@auditrix) <a href="https://twitter.com/auditrix/status/1461724491348799489?ref_src=twsrc%5Etfw">November 19, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><p><br /></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comtag:blogger.com,1999:blog-2123228235986378478.post-3581643916974935752021-11-03T18:10:00.002-07:002021-11-03T18:10:14.183-07:00Cedar Boschan Quoted in Rolling Stone<p></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dwHGb2jt_DtqIYDLuMAW556cUr3SKtrQ0jqfUWU_3ut4uqeNVO0ltYu06KIY9lx5Hod3UQHlMOaEME2mYuMEA' class='b-hbp-video b-uploaded' frameborder='0'></iframe></div><span style="background-color: white; color: #59626a; font-family: Roboto; font-size: 14px; white-space: pre-wrap;"><p><span style="background-color: white; color: #59626a; font-family: Roboto; font-size: 14px; white-space: pre-wrap;"><br /></span></p>“I’m not surprised it took a long time, and I’m glad she hung in there,” says Cedar Boschan, the head of a firm that regularly audits labels over royalty payments. “I’m glad [Sony] turned on the faucet; that’s what’s really important.”
</span> <p></p><p><a href="https://www.rollingstone.com/music/music-features/johnnie-taylor-fonda-bryant-sony-royalties-1241773/" target="_blank">Click here</a> to read the article.</p><p><br /></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.com10866 Washington Blvd Suite #1205, Culver City, CA 90232, USA34.0147781 -118.40810395.7045442638211554 -153.56435390000001 62.325011936178846 -83.2518539tag:blogger.com,1999:blog-2123228235986378478.post-56344740894843411312021-08-15T08:28:00.002-07:002021-11-03T18:12:01.898-07:00Highlights from Car Week in Carmel-By-The-Sea<p> We had so much fun at the Bentley party!</p><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-ElciE-mAiXk/YYMtLkD_5GI/AAAAAAAEJ5o/UAcnYRdRIVsIzesqsVALyJutMxjk12mwACPcBGAsYHg/s4000/20210814_231231.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="4000" data-original-width="3000" height="320" src="https://1.bp.blogspot.com/-ElciE-mAiXk/YYMtLkD_5GI/AAAAAAAEJ5o/UAcnYRdRIVsIzesqsVALyJutMxjk12mwACPcBGAsYHg/w240-h320/20210814_231231.jpg" width="240" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div>And the next day at Concors d'Elegance<br /><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-ZvVqEnVZHg8/YYMtLi4U52I/AAAAAAAEJ5o/RHnpFWEfM-kbCOdj7w7K0FjrTOTzyuiaACPcBGAsYHg/s1920/BeautyPlus_20210815125011790_save.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1920" height="180" src="https://1.bp.blogspot.com/-ZvVqEnVZHg8/YYMtLi4U52I/AAAAAAAEJ5o/RHnpFWEfM-kbCOdj7w7K0FjrTOTzyuiaACPcBGAsYHg/s320/BeautyPlus_20210815125011790_save.jpg" width="320" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-vbEHoeD-pQo/YYMtLgE1A_I/AAAAAAAEJ5o/j4iulI6lWf8cSBzhF_CfjsuT3X7N0AQxQCPcBGAsYHg/s1920/BeautyPlus_20210815151555810_save.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1920" data-original-width="1440" height="320" src="https://1.bp.blogspot.com/-vbEHoeD-pQo/YYMtLgE1A_I/AAAAAAAEJ5o/j4iulI6lWf8cSBzhF_CfjsuT3X7N0AQxQCPcBGAsYHg/s320/BeautyPlus_20210815151555810_save.jpg" width="240" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-oduseA_h_Uk/YYMtLv60miI/AAAAAAAEJ5o/wWYCEMmyxE4Hxj1n33EmMoNZEP4zTzUMACPcBGAsYHg/s1920/BeautyPlus_20210815235113336_save.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1920" height="180" src="https://1.bp.blogspot.com/-oduseA_h_Uk/YYMtLv60miI/AAAAAAAEJ5o/wWYCEMmyxE4Hxj1n33EmMoNZEP4zTzUMACPcBGAsYHg/s320/BeautyPlus_20210815235113336_save.jpg" width="320" /></a></div><br /><p></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comPebble Beach, Del Monte Forest, CA, USA36.5725286 -121.94859378.2622947638211528 -157.1048437 64.882762436178837 -86.7923437tag:blogger.com,1999:blog-2123228235986378478.post-5028911919187692472021-07-19T11:08:00.005-07:002021-07-19T11:13:41.502-07:00Cedar Boschan on Rising Pressure to Improve Creators' Royalties<p>Rolling Stone and Billboard recently interviewed me regarding Sony's "Legacy Artist Royalty Plan." You can <a href="https://www.billboard.com/articles/business/record-labels/9591934/sony-music-legacy-royalties-analysis/">read about it here</a>.</p><p><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://www.billboard.com/articles/business/record-labels/9591934/sony-music-legacy-royalties-analysis/" imageanchor="1" style="margin-left: 1em; margin-right: 1em;" target="_blank"><img border="0" data-original-height="658" data-original-width="656" height="320" src="https://1.bp.blogspot.com/-406hzqetzIU/YPW7mSLwmjI/AAAAAAAD--E/SKWbj9Z6_aMiM-CAEOKCcNGoHijidTI8ACLcBGAsYHQ/s320/Cedar%2BBoschan%2BQuoted%2Bin%2BBillboard.jpg" /></a></div><br /><p>On the heels of Sony's announcement, the United Kingdom's Members of Parliament have found cause for a "'complete reset of streaming' that 'enshrines in law rights to a fair share of the earnings,'" which you can <a href="https://www.nme.com/news/music/streaming-inquiry-mps-call-for-complete-reset-to-redress-the-balance-2994064">read about here</a>.</p><p><br /></p><p>Given concerns of inflation in the US, and the rising social pressure to fairly compensate creators, do you think the CRB will be more apt to consider our comments on the proposed mechanical rate freeze?</p><p><br /></p><p>Are you going to comment on such settlement for the CRB to consider? (<a href="https://twitter.com/MusicTechPolicy/status/1414209499901034497">Click here for instructions</a> on how to register to comment, although the mobile interface was a bit different for me.)</p><p style="text-align: center;"><br /></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.com10866 Washington Blvd Suite #1205, Culver City, CA 90232, USA34.0147781 -118.40810395.7045442638211554 -153.56435390000001 62.325011936178846 -83.2518539tag:blogger.com,1999:blog-2123228235986378478.post-79710478211000331512021-05-28T10:19:00.001-07:002021-05-28T10:19:07.971-07:00What Does Pro-Rata Mean? Especially With Reference to Streaming Royalties.<p>Pro rata is a Latin adverb or adjective meaning a
proportionate allocation.</p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/nQv-EiKrpBM" width="320" youtube-src-id="nQv-EiKrpBM"></iframe></div><p>When services calculate streaming royalties to licensors on
a pro rata basis, it usually means allocating earnings to each licensor
according to its share of a pool of total earnings.</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">However, licensors of content that attracts the most
profitable per-stream users are apt to find such standard pro-rata methodology to
be unfair and may favor user-centric royalty calculations instead of those that
are pool-based. In a user-centric calculation, a streaming service instead
pro-rates earnings from each individual user to the relevant licensors and does
not first pool earnings matched to individual users. <o:p></o:p></p>
<p class="MsoNormal">Pro rata calculations can be used to determine the proportionate
shares of any given whole and it is often used in business finance.<o:p></o:p></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comtag:blogger.com,1999:blog-2123228235986378478.post-83526957182800114122021-03-12T13:53:00.002-08:002021-03-15T13:54:38.913-07:00Q&A with Andrew Tenenbaum<p></p><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://1.bp.blogspot.com/-Ejtow7ba2c0/YEcR4eBF1RI/AAAAAAADugQ/FMASbw9SVIwEi_gN7PdLOy97ikWHHAnEQCLcBGAsYHQ/s795/IMG_20171017_103917.jpg" style="margin-left: auto; margin-right: auto;"><span style="font-family: inherit;"><img alt="Andrew D. Tenenbaum, Esq. Lectures on the Economics of Live Touring at Los Angeles College of Music" border="0" data-original-height="762" data-original-width="795" height="192" src="https://1.bp.blogspot.com/-Ejtow7ba2c0/YEcR4eBF1RI/AAAAAAADugQ/FMASbw9SVIwEi_gN7PdLOy97ikWHHAnEQCLcBGAsYHQ/w200-h192/IMG_20171017_103917.jpg" title="Andrew D. Tenenbaum, Esq. Lectures on the Economics of Live Touring at Los Angeles College of Music" width="200" /></span></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><span style="font-family: inherit;">Andrew D. Tenenbaum, Esq.<br />Lectures on the Economics of Live Touring<br />At Los Angeles College of Music</span></td></tr></tbody></table><span style="font-family: inherit;"><i></i></span><p></p><p><span style="font-family: inherit;"><i><span style="font-size: 13.5pt;"><br />Andrew D. Tenenbaum</span></i><i><span style="font-size: 13.5pt;"> has decades of
management experience with clients such as comedian Terry Fator, producer Larry
Brezner (“Arthur”,
“Arthur 2” and “Ride Along”), the Frank Zappa Estate,
Elvis Presley Enterprises, comedian Chonda Pierce, writer Beth Sherman (“The Ellen DeGeneres Show” and “The
Queen Latifah Show”), writer Anthony Caleca (“Tonight Show”, “The Talk”
and “The Kelly Clarkson Show”), writer Andrew McElfresh (“Tonight Show”, You
Bet Your Life With Jay Leno” and “Scary Movie II”), X-Games skateboard
medalist/actor Paul “P-Rod” Rodriguez, and many, many
more entertainers and athletes.</span></i></span></p><p><span style="font-family: inherit; font-size: 13.5pt;"><i>In addition, Mr. Tenenbaum has been a founder, operator and
investor in multiple start-up private companies, has an extensive history as a
producer and executive producer in film and TV, and he is a licensed attorney
with a sharp entertainment litigation practice.<br /></i><br /></span></p><p><span style="font-family: inherit;"><b><u><span style="font-size: 13.5pt;">MEET ANDREW TENENBAUM</span></u></b><span style="font-size: 13.5pt;"><o:p></o:p></span></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: What are the three most important things that you do for
clients?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: That may be one of the best questions ever
asked. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: Thank you. You may have one of the best answers.<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: The number one thing is to help clients to realize
their creative dreams. It's not about a quick hit or making the news on a
given day. But rather to help them sustain a career and reach
goals. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">Number two is to be honest, fair and reliable. Artists need
to know you have their back and are looking out for them. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">Number three would be to take care of business so artists can
focus on the art. One of my mentors, Buddy Morra, hung a sign in his
office that said, “Don’t Embarrass The Office.” So, add that one to the
list.<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: You have such a multifaceted career. You are an
attorney, a talent manager and an entrepreneur… who does each of those things
well! Am I missing anything? (e.g., Are you an architect too? haha)<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: Not an architect but I do have an amazing wood workshop
in my garage that is my hobby. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: A true Renaissance man. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: As to your question, you have the list correct.
But did I also mention that I produce film and television? All of those
things work harmoniously together. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">Being a talent manager is the “mother ship” that gives me a great
reach of relationships, an understanding of how artists think and function, how
the pieces of production come together and the inner workings of the sub-genres
of the entertainment business. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">Of course, the lawyer side greatly informs putting deals together
and vice versa. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">And the entrepreneurial endeavors are the icing on the
cake. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: Do you find you can focus on all of these occupations
simultaneously, or do you prefer to take breaks and focus on them
serially? <o:p></o:p></span></p><p style="margin-bottom: 13.5pt;"><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: It's all simultaneous. It gives me great
flexibility. If I meet an artist or rights holder that needs management I
can go in that direction. Sometimes it's about legal advice and I can
work it that way. Or sometimes the opportunity is more about investment
or a start-up. I can also take on a one-off deal as a lawyer, or bring an
IFTA or other arbitration for a profit participation.<br /><br /></span></p><p><span style="font-family: inherit;"><b><u><span style="font-size: 13.5pt;">ANDREW TENENBAUM'S LEGAL PRACTICE</span></u></b><span style="font-size: 13.5pt;"><o:p></o:p></span></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: How have your varied career pursuits informed your
practice as an attorney?<o:p></o:p></span></p><p><span style="font-family: inherit;"><span style="font-size: 13.5pt;">TENENBAUM: There is no substitute for actual hands-on experience
to inform the practice of law. I have spent tens of thousands of hours on
the road, at rehearsals, a</span><span style="font-size: 13.5pt;">t shows, recording,
producing and working with artists in all kinds of other ways. Then, when
an issue arises it’s a tremendous benefit to have had the firsthand
boots-on-the ground experience to know how things work in order to put together
deals or resolve conflicts.<o:p></o:p></span></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: How does your view differ from others when you are
evaluating a potential case?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: I think I have a much more practical view of things,
that comes from experience like I mentioned above. Not everyone has
that. Too many lawyers just know what things look like on paper and when
they go bad. Go spend 30 days a year of more on a tour bus, or months on
a set in 90-degree weather in Tennessee, and folks will understand a lot
more. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: How do you differ from other entertainment litigators who
specifically do profit participation work, which is one of your strong suits?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: There are many very good lawyers out there doing great
work. My differentiation is that I prefer contingency work. It
aligns my interest 100% with the client. If they don’t win, I don’t
win. I don’t get paid for bad settlements. I will take that risk
and bet on myself every time.<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: In litigation we often look backward in time to claim
past damages for clients. How far back can you usually go?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: There are normally three limitations. First is
the statute of limitations, which is the law about how for back a claim came be
made. In California for example its normally four years for a written
contract. There is some room to maneuver as to when that four years
begins. Second is if there is a clause in the contract that limits the
amount of time a client has to object to a statement that accompanies
payment. Third is also in a contract and that would be after the period
of time to object to a statement, how long a client has to file an
action. It’s very important to track these things and if you are going to
challenge a statement to get a terrific auditor retained. Am I allowed to
mention Cedar Boschan for this last suggestion?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: Thank you, Andrew. We are pleased to be of service.<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">Do your damages claims often relate to intercompany fees deducted
off the top from the foreign affiliate receipts reported to our clients?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: Yes, this is a common claim. This happens where a
distributor charges a basic distribution fee and then hires its affiliates as a
sub distributor. The artist ends up being charged twice by the same
company and all the money goes into the same pocket. I had a case once
where a European distributor was aggressively defending an intercompany
distribution fee claim that I destroyed when we provided evidence that both
entities had their name on the same door. Not all of them are that easy,
but the claim is quite common.<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: What are some of your challenges collecting your clients’
fair share? Can you offer any tips?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: Shock and awe! When it becomes clear that the
distributor is not going to settle reasonably, then move quickly and
aggressively to file an action. And don’t just go in with a summons and
be seen as settling in for a long-term case. Hit them hard from the
beginning. File the complaint along with a motion for summary judgment
where possible, be aggressive and expedient about discovery and utilize
arbitration where possible.<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: I love shock and awe!<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">To make arbitration over foreign distribution profit shares
worthwhile, what minimum level of foreign earnings and/or what kind of
pictures/projects are we talking about in which territories?<o:p></o:p></span></p><p style="margin-bottom: 13.5pt;"><span style="font-family: inherit;"><span style="font-size: 13.5pt;">TENENBAUM: If client and lawyer are smart about the elements of
the claim and realistic about settlement potential it’s possible to bring cases
in the mid five figures. For example, if it’s an IFTA claim and the
distributor does not want to end up in bad standing by defaulting at IFTA, they
will need to pay real attention to the claim. The</span><span style="font-size: 13.5pt;">y don’t want to be barred from film markets. Lawyers
who are efficient and aggressive can get good settlements in cases this
way. And often it’s not about just one case for smaller amounts, but
rather bringing a variety of cases across a film or portfolio the total of
which is cumulative equivalent or more than one very large case. <br /><br /></span></span></p><p><span style="font-family: inherit;"><b><u><span style="font-size: 13.5pt;">ANDREW TENENBAUM: VIEWPOINTS ON THE ENTERTAINMENT BUSINESS</span></u></b><span style="font-size: 13.5pt;"><o:p></o:p></span></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: What are the major income sources for your clients and
how is that changing over time? <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: Income sources have changed dramatically. Take
for example film producers. Ten to twenty and more years ago there was
the same theatrical income as there is now, except for this pandemic.
However, in those days there was great money to be made from distribution
windows at pay cable, basic cable, and DVD. Broadcast networks for movies
of the week had largely ended by then, at least in the USA. That’s all
gone in relative terms at least, and in addition to theatrical it’s the various
forms of video on demand, namely subscription and transactional. Some
folks made fortunes on DVDs…anyone own a DVD player except to watch the
screeners the guilds send out (which are quickly being replaced by streaming
links)?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: To make a living, how many fans does an entertainer
need? 1,000 (per <a href="https://www.blogger.com/blog/post/edit/2123228235986378478/8352695718280011412">Kevin
Kelly</a>) or 100,000? Or what questions should an individual be asking to
determine if a project is financially viable.<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: The answer very much depends on the genre the artist
works in. I don’t agree that the 1,000 that <a href="https://www.blogger.com/blog/post/edit/2123228235986378478/8352695718280011412">the
article</a> talks about is anywhere near close to what is needed for an
artist on a national scale. A jazz musician can make a living with
probably 500k+ followers. Versus a pop artist needs millions to tens of
millions to sustain touring, recording and everything that goes with it.
And there are many cases in the middle. Plus, there is a key factor of
engagement which may be more important than fan count. An artist with a
highly engaged social media base of 1M is more viable than an artist with 10M
that has casual fans that don’t engage much. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: In the entertainment business, what is less important now
than it was five years ago? And how will the coronavirus pandemic permanently
change the entertainment business?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: The pandemic has changed a lot of things. One I
would like to discuss is “appearances”. There was a time that it was
critical to have great looking offices, a prestige address, lunch at the right
places, etc. Now that we all work from home due to Corona, in many ways I
feel that it has leveled the playing field. Many folks on those Zoom
calls are wearing sweats and t-shirts, the kids are taking in the background
and the dog is barking. But we have learned to look past all that and
focus on the person. Not that I am giving up my offices any time soon,
but I like that appearances are at least a lesser part of the equation.<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">...Anyone want to buy a closet full of button-down Brooks Brothers
dress shirts?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">I think for the next phase after the pandemic people will become
much more deliberate in their out-of-the-home activities. Going to the
movies, for example, will be planned to a greater extent. Concerts will
be, unfortunately, less in volume and higher in a fan’s scale of
importance. Informed people are taking about more “curated”
activities. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: What are some of the current companies in entertainment
who you think are getting it right and why?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: Just to give a few examples, right now at the top of
the list is Netflix. Ten years ago, they were mailing DVDs to my house,
so we did not have to go to the store to rent them. Then they figured out
how to ditch the discs and stream the movies. Then they figured out how
to produce and distribute some of the best quality content that an entire
family can watch for the cost of a single movie ticket. They deliver a
great product at a very fair price. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">Disney+ is doing the same and now with the bold goal of delivering
ten series based on Star Wars, again for a very affordable monthly
price. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">Spotify is another one. For a very fair monthly price a
family has access to virtually every song ever, on demand, with an amazing set
of tools to refine song lists and playback options. Again, for monthly
price of less than what a CD cost back in the day. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: What are some of the key opportunities for entertainers
today?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: The biggest opportunity today presents the biggest
issue. Everyone has - at their fingertips - distribution to the entire
world. 4.4B people have access to the internet. 2B have
YouTube. The key opportunity is how to break thru all the noise and be
heard. How to get your material seen and hear. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">Charli D’Amelio is a 16-year-old who has 8.6B likes on Tik Tok and
no one heard of her just a few years ago. If you add up everyone who ever
saw a concert by Miles Davis, Count Basie, Elvis, Michael Jackson, David Bowie,
The Beatles, Bing Crosby and Sinatra it won't be a fraction of that. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">One artist to look at is Laura Clery. Laura has 13M fan on
Facebook. She puts out videos multiple times per week and gets tens of
millions of views. Some say she is a modern version of Lucille
Ball. I think if Lucille Ball were alive today, she’d be doing what Laura
is doing. <o:p></o:p></span></p><p style="margin-bottom: 13.5pt;"><span style="font-family: inherit; font-size: 13.5pt;">Chonda Pierce is a dear friend and client I work with. She
is a terrific study for young artists that want to break thru, to see how
Chonda took advantage of each opportunity as they presented themselves to
evolve a career, from VHS, to DVD, to theatrical documentary, to streaming and
on. <br /><br /></span></p><p><b><u><span style="font-family: inherit; font-size: 13.5pt;">LIVE ENTERTAINMENT INSIGHTS FROM ANDREW TENENBAUM</span></u></b></p><p><span style="font-family: inherit;"><b></b></span></p><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://1.bp.blogspot.com/-2W3LC9dkh-Y/YEcTLfDkd-I/AAAAAAADugk/Z6UPE6CPFy0H5uztWK2Qu4-8QNoRjNqYACLcBGAsYHQ/s2048/IMG_20171017_104028.jpg" style="margin-left: auto; margin-right: auto;"><span style="font-family: inherit;"><img border="0" data-original-height="1536" data-original-width="2048" src="https://1.bp.blogspot.com/-2W3LC9dkh-Y/YEcTLfDkd-I/AAAAAAADugk/Z6UPE6CPFy0H5uztWK2Qu4-8QNoRjNqYACLcBGAsYHQ/s320/IMG_20171017_104028.jpg" width="320" /></span></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><span style="font-family: inherit;">Andrew D. Tenenbaum, Esq.<br />Lectures on the Economics of Live Touring<br />At Los Angeles College of Music<br /></span></td></tr></tbody></table><div align="center"><span style="font-family: inherit;"><br /></span></div><p class="MsoNormal"><span style="font-family: inherit;"><span style="font-size: 13.5pt;">BOSCHAN: You were kind enough to guest lecture on the economics of the live entertainment business when I was teaching at Los Angeles College of Music. The students thought you were the best speaker, by the way! I had them read </span><a href="https://www.blogger.com/blog/post/edit/2123228235986378478/8352695718280011412"><span style="font-size: 13.5pt;">this op-ed in <i>Billboard</i></span></a><span style="font-size: 13.5pt;"> that you wrote as well about dynamic ticket pricing and VIP packages. </span><span face="Calibri, sans-serif"><o:p></o:p></span></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">At this juncture (during a coronavirus pandemic where much of the live entertainment business is shut down) and looking into the future, in which directions do you think dynamic ticket prices and dynamic fan experiences are evolving?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: Thanks for the kind words. Dynamic pricing is and will be the future. It makes total sense. Like I wrote in the article, you can’t mess with the law of supply and demand, but if you try that’s when the middlemen step in a take income away from the artists because the marketplace was not real. That is the Don Corleone scenario I wrote about. Dynamic pricing is the natural outcome of the supply vs. demand equation. It will become more of the norm.<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: You had the foresight or luck to divest Future Beat - your VIP package business - before the COVID-19 pandemic (WME bought it). Would you consider getting back into the live music business again in the future and under what circumstances? <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: Live music will always be a terrific business. I am working on a new venture. It's going to take some time till things can be safe for the artist and audience and de-risked for the investor.<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: Do you think virtual live (or prerecorded) event experiences are priced below-market, just as live experiences were? (Except there aren’t scalpers to resell tickets because there is unlimited supply of underpriced access to virtual live entertainment events.)<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: The virtual live business is too young to really know. $20 seems to be a sweet spot for a lot of these offerings. But it will take time to find out where the right price lives.<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: Any tips on how entertainers can better or more dynamically monetize their virtual appearances?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: There is a nice set-up offered by <a href="https://vye.live/">Vye.live</a> and others that utilize large video boards that allow fans to pay a VIP price to be seen in a virtual audience. Merchandise bundles and personal Zoom sessions are also being offered. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: Are there unique challenges for comedians in going virtual? (My favorite local comedy show – The Secret Show – has not gone virtual. I wonder if it is because some of the comedians have granted exclusive streaming rights to other companies and, whereas they could previously perform live, they are restricted from streaming their performances, or maybe they just don’t want to because live is how they were testing their material and it is hard to get the same audience feedback virtually.)<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: Comedy presents a very different situation than music. Comedians need the real-time feedback of a live audience. Just try to watch what some have tried on television specials without audiences. It’s difficult for them to find a comfort zone and the viewer sees it all as off balance. It doesn’t deliver. The virtual audience I mention above is a good solution. <br /><br /></span></p><p><span style="font-family: inherit;"><b><u><span style="font-size: 13.5pt;">LIFE HACKS FROM ANDREW TENENBAUM</span></u></b><span style="font-size: 13.5pt;"><o:p></o:p></span></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: When should an entertainer fire his manager?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: I am a strong believer in loyalty and that good things flow from that. David Steinberg is a manager I worked for, for many years, and a mentor. David is a great teacher and one of the funniest people on the planet. He has managed Billy Crystal for 50 years. Billy is one of the greatest talents I have ever seen. Billy’s career has benefited tremendously from having David at his side, watching his back and advancing his career. That’s what artists should have in a manager. And if an artist does not have that, the next step is to talk to the manger. Don’t expeditiously fire him or her. The client-manager relationship is a very special one. Always try to make it work. But there are times when it is appropriate to move on.<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: What software and services help you run your life? <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: Is red wine an appropriate answer to this question?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: What is the best $200 dollars (or less) that you have spent in the last year? (i.e., what is the small purchase that gave you the greatest joy?)<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: Is red wine also an appropriate answer to this question?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: What are the key metrics you rely on to gauge your success?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: I learned a great lesson from my dad on this one, Stephen Tenenbaum, who has had a 64-year career as a business manager, royalty auditor, manager, and producer. He always said to keep the clients happy and the success will follow. It’s a good non-metric. It works. <o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: Your father is such a legend in the entertainment business. Three of my mentors – Fred Wolinsky, Linda Becker, and Steve Sills – worked for him and I am delighted to be working with him on a project right now. Why did you choose to pursue your law degree (and not accounting)? How has having a father in the world of accounting and in entertainment helped or hindered your career path?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: Actually, I have a degree in accounting. My father has been the best mentor and teacher. He has a vast knowledge of the industry and its history that reaches back to 1957, when Elvis was first getting started and before the Beatles, to the present with streaming, hip hop, social media influencers, etc. There are very few people in the industry who know what he knows. I call on him frequently for advice on things. And he now calls on me… that is how I referred him to you.<o:p></o:p></span></p><p style="margin-bottom: 13.5pt;"><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: I can't believe you also have a degree in accounting. Wow - I am so impressed!<br /><br /><o:p></o:p></span></p><p style="margin-bottom: 13.5pt;"><b><u><span style="font-family: inherit; font-size: 13.5pt;">CONNECT WITH ANDREW TENENBAUM</span></u></b></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: Who should definitely contact you? Who are your clients and how can they find you?<o:p></o:p></span></p><p><span style="font-family: inherit; font-size: 13.5pt;">TENENBAUM: Artists, rights holders, producers, and investors. Most anyone with a need for professional representation in the entertainment industry. I am not shy about saying when I don’t have the ability to do something and helping direct someone to the expertise they need. A lot of the business comes from referrals, but I also have my website, <a href="https://www.blogger.com/blog/post/edit/2123228235986378478/8352695718280011412">www.cmpent.com</a>. <o:p></o:p></span></p><p></p><p><span style="font-family: inherit; font-size: 13.5pt;">BOSCHAN: Thank you for teaching us so much, Andrew. I especially encourage profit participants to reach out for your help with foreign and other damages claims!</span></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.com280 S Beverly Dr, Beverly Hills, CA 90212, USA34.062436 -118.398730213.580539195178279 -153.5549802 54.544332804821721 -83.2424802tag:blogger.com,1999:blog-2123228235986378478.post-7849793236087006722021-01-08T02:52:00.001-08:002021-01-25T13:59:39.910-08:00So Much MMA and MLC Jargon!<p class="MsoNormal">When reading <a href="https://www.federalregister.gov/documents/2020/12/31/2020-28958/the-public-musical-works-database-and-transparency-of-the-mechanical-licensing-collective" target="_blank">in the Federal Register the United States' recent interim ruling regarding the public musical works database and transparency of the mechanical licensing collective</a>, I realized that it was so packed with jargon that it would be impossible for most people to comprehend.</p><p class="MsoNormal">Therefore, below is a mini-glossary of many terms one needs to understand in order to make sense of the new interim rule. If I missed one that you wish us to add, please request it in the comments below.</p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/aGhzt_c4Hks" width="321" youtube-src-id="aGhzt_c4Hks"></iframe></div><br /><p class="MsoNormal"><br /></p><p class="MsoNormal"></p><ul style="text-align: left;"><li><b><a href="https://a2im.org/about-us/">A2IM</a></b> - The American
Association of Independent Music (“A2IM”) is the U.S. trade organization of independent
music labels.</li><li><b><a href="https://digital.gov/2013/04/30/apis-in-government/#:~:text=What%20Are%20APIs%3F,link%20on%20Twitter%20or%20Facebook.">API</a></b>
– An application programming interface, which enables the sharing of data
between different software applications.</li><li><b><a href="https://beta.regulations.gov/comment/COLC-2020-0006-0032">ARM</a></b> - The
Alliance for Recorded Music (“ARM”) is a nonprofit coalition of the RIAA and
A2IM, which collectively represent the labels that own and/or distribute most
of the sound recordings commercially produced and distributed in the United
States. </li><li><b><a href="https://www.ascap.com/about-us">ASCAP</a></b> - American
Society of Composers, Authors, and Publishers (“ASCAP”) is one of the two
largest PROs in the United States.</li><li><b><a href="https://www.biem.org/index.php?option=com_k2&view=item&id=138:biem-welcomepage-public&lang=en">BIEM</a></b>
- An international organization of mechanical rights CMOs</li><li><b><a href="https://www.bmi.com/about">BMI</a></b> - Broadcast
Music, Inc. (“BMI”) is one of the two largest PROs in the United States.</li><li><b><a href="https://www.cisac.org/about">CISAC</a></b> - The
International Confederation of Societies of Authors and Composers (“CISAC”) is an
international network of authors’ societies. </li><li><b>CMO</b> – A collective management organization </li><li><b><a href="https://members.cisac.org/CisacPortal/consulterDocument.do?id=22272">CWR</a></b>
– Common Works Registration (“CWR”) is a format used by publishers to provide musical
works data to performing and mechanical rights organizations</li><li><b><a href="https://ddex.net/about-ddex/">DDEX</a></b> – An organization
with an internationally recognized standard for information in messages exchanged
between DMPs and the MLC</li><li><b>DLC</b> – In the entertainment industry this term ordinarily
refers to “downloadable content,” but in the context of the MMA, it specifically
means the licensee coordinator (“DLC”) designated by the Copyright Office to
represent MLC licensees in proceedings before the Copyright Royalty Judges and
the Office, to serve as a non-voting member of the MLC, and to carry out other
functions.</li><li><b>DMP</b> – A digital music provider</li><li><b><a href="https://www.themlc.com/data-quality-initiative#:~:text=The%20MLC%20created%20the%20Data,data%20against%20The%20MLC's%20data.">DQI</a></b>
– As used by the MLC, the Data Quality Initiative (“DQI”) is a way for rightsholders
to compare their many musical works repertoire records to The MLC’s database
and identify discrepancies that need to be resolved for both datasets to be
accurate.</li><li><b><a href="http://dpid.ddex.net/">DPID</a> </b>– The DDEX
Party Identifier is a unique code assigned by DDEX to each entity that sends or
receives DDEX messages. The sender and recipient of a DDEX message are each identified
via their respective DPIDs.</li><li><b><a href="https://ddex.net/standards/release-delivery/">ERN</a></b>
– DDEX’s electronic release notification standard to enable record companies to
inform DMPs about product releases</li><li><b><a href="https://ethics.house.gov/casework/record-ex-parte-communications">Ex
parte communications</a></b> - An ex parte communication is an oral or written
communication made without proper notice to all parties and not on the public
record, from an interested person outside the agency to a member of the agency,
an administrative law judge, or an employee involved in the decision-making
process.</li><li><b><a href="https://www.reginfo.gov/public/jsp/eAgenda/Abbrevs.myjsp">Federal
Register</a></b> - The Federal Register is a daily Federal Government
publication that provides a uniform system for publishing Presidential
documents, all proposed and final regulations, notices of meetings, and other
official documents issued by Federal departments and agencies.</li><li><b><a href="http://www.futureofmusic.org/about">FMC</a></b> –
In the music industry, this refers to the Future of Music Coalition (FMC), a
US-based non-profit founded by musicians, artist advocates, technologists and
legal experts to futher education, research and advocacy for musicians.</li><li><b><a href="https://www.gema.de/en/about-gema/organisation/">GEMA</a>
</b>– A CMO based in Germany</li><li><b><a href="https://www.federalregister.gov/uploads/2011/01/the_rulemaking_process.pdf">Interim
rule</a></b> - When an agency finds that it has good cause to issue a final
rule without first publishing a proposed rule, it often characterizes the rule
as an “interim final rule,” or “interim rule.” This type of rule becomes
effective immediately upon publication.</li><li><b><a href="https://ipisystem.ch/">IPI</a></b> - Interested
Parties Information (“IPI”)<span style="font-family: "Cambria Math",serif; mso-bidi-font-family: "Cambria Math";"> </span>is a unique code assigned worldwide
to each stakeholder of a musical work by CISAC. Such IPIs identify interested
parties such as authors, composers, adaptors, administrators, arrangers, publishers,
subpublishers, associated performers, and translators.</li><li><b><a href="https://isni.org/page/what-is-isni/">ISNI</a> </b>-
International Standard Name Identifier (“ISNI”) <a name="_Hlk60916389">is
a standardized unique code permanently assigned to a “contributor” to and distributor
of creative works by an </a><a href="https://isni.org/page/get-an-isni/">ISNI agency</a>. Such ISNIs
identify researchers, inventors, writers, artists, visual creators, performers,
producers, publishers, aggregators, and others. </li><li><b><a href="https://isrc.ifpi.org/en/">ISRC</a></b> - The
International Standard Recording Code (“ISRC”) is a somewhat standardized unique
code permanently assigned to a recording by its first owner. Such ISRCs identify
recordings across different exploitations. </li><li><b><a href="https://www.iswc.org/what-iswc">ISWC</a></b> - The
International Standard Musical Work Code (“ISWC”) is a somewhat standardized unique
code permanently assigned to a musical work by a local registration agency when
a work is first registered. Such ISWCs identify songs or version thereof across
different exploitations. </li><li><b><a href="http://service.ddex.net/dd/MLC14/dd/ddex_LabelName.html">LabelName</a></b>
– DDEX metadata field to show the name of the record label for the relevant product
release</li><li><b>LAD</b> – January 1, 2021, the license availability date of
the MMA’s first blanket licensing regime. </li><li><b><a href="https://www.loc.gov/about/">Library of Congress</a></b>
- The Library of Congress is the largest library in the world, with millions of
books, recordings, photographs, newspapers, maps and manuscripts in its
collections. The Library is the main research arm of the U.S. Congress and the
home of the U.S. Copyright Office.</li><li><b><a href="https://www.musicartistscoalition.com/#!/who-we-are">MAC</a></b> – The Music
Artists Coalition (MAC) is a digital rights advocacy organization for musical artists.</li><li><b><a href="https://en.wikipedia.org/wiki/Marginal_cost">Marginal
Cost</a></b> – The cost for the supplier to produce one more unit of a good or
service.</li><li><b>Metadata</b> – Information about information or
accompanying files</li><li><b><a href="https://mic-coalition.org/">MIC</a></b> – An
American coalition of associations whose <a href="https://mic-coalition.org/#members">members</a> use and perform music
over airwaves, through the internet and in retailers, theaters, hotels,
restaurants, and bars.</li><li><b><a href="https://www.themlc.com/our-story">MLC</a></b> – In
the music industry, this refers to a mechanical licensing collective (“MLC”) established
by the MMA (defined below) to administer the blanket license, receive notices
and reports from digital music providers, create and maintain a publicly
accessible database containing information relating to musical works, collect
and distribute royalties, and identify musical works and their owners for
payment. The U.S. Copyright Office (defined below) designated Mechanical
Licensing Collective, Inc. as such MLC.</li><li><b><a href="https://www.congress.gov/bill/115th-congress/house-bill/1551">MMA</a></b>
– In the music industry, this refers to the United States’ Musical Works
Modernization Act, title I of the Orrin G. Hatch-Bob Goodlatte Music
Modernization Act, H.R. 1551. The law establishes a new blanket compulsory
license that will be administered by a mechanical licensing collective, which
will make available a public musical works database as part of its statutory
duties. </li><li><b>NOI</b> – Usually in the music industry, NOI refers to “notice
of intent” to use a copyright. However, in other instances, including the
recent <a href="https://www.federalregister.gov/documents/2020/12/31/2020-28958/the-public-musical-works-database-and-transparency-of-the-mechanical-licensing-collective">Interim
Rule</a> that inspired this post, it refers to a “notification of inquiry” from
the U.S. Copyright Office, which is basically a notice of The Office’s quest
for information and/or commentary from stakeholders.</li><li><b><a href="https://www.federalregister.gov/uploads/2011/01/the_rulemaking_process.pdf">NPRM</a></b>
– A notice of proposed rulemaking or NPRM is the<span face=""Tahoma",sans-serif">
</span>official<span face=""Tahoma",sans-serif"> </span>document<span face=""Tahoma",sans-serif"> </span>that<span face=""Tahoma",sans-serif"> </span>announces<span face=""Tahoma",sans-serif">
</span>and<span face=""Tahoma",sans-serif"> </span>explains<span face=""Tahoma",sans-serif"> </span>the<span face=""Tahoma",sans-serif"> </span>agency’s<span face=""Tahoma",sans-serif"> </span>plan<span face=""Tahoma",sans-serif"> </span>to<span face=""Tahoma",sans-serif"> </span>address<span face=""Tahoma",sans-serif"> </span>a<span face=""Tahoma",sans-serif">
</span>problem<span face=""Tahoma",sans-serif"> </span>or<span face=""Tahoma",sans-serif"> </span>accomplish<span face=""Tahoma",sans-serif"> </span>a<span face=""Tahoma",sans-serif">
</span>goal.<span face=""Tahoma",sans-serif"> </span>All<span face=""Tahoma",sans-serif"> </span>proposed<span face=""Tahoma",sans-serif"> </span>rules<span face=""Tahoma",sans-serif">
</span>must<span face=""Tahoma",sans-serif"> </span>be<span face=""Tahoma",sans-serif"> </span>published<span face=""Tahoma",sans-serif"> </span>in<span face=""Tahoma",sans-serif"> </span>the<span face=""Tahoma",sans-serif"> </span>Federal<span face=""Tahoma",sans-serif"> </span>Register<span face=""Tahoma",sans-serif"> </span>to<span face=""Tahoma",sans-serif"> </span>notify<span face=""Tahoma",sans-serif"> </span>the<span face=""Tahoma",sans-serif"> </span>public<span face=""Tahoma",sans-serif">
</span>and<span face=""Tahoma",sans-serif"> </span>to<span face=""Tahoma",sans-serif"> </span>give<span face=""Tahoma",sans-serif"> </span>them<span face=""Tahoma",sans-serif">
</span>an<span face=""Tahoma",sans-serif"> </span>opportunity<span face=""Tahoma",sans-serif"> </span>to<span face=""Tahoma",sans-serif"> </span>submit<span face=""Tahoma",sans-serif">
</span>comments.<span face=""Tahoma",sans-serif"> </span>The<span face=""Tahoma",sans-serif">
</span>proposed<span face=""Tahoma",sans-serif"> </span>rule<span face=""Tahoma",sans-serif"> </span>and<span face=""Tahoma",sans-serif"> </span>the<span face=""Tahoma",sans-serif"> </span>public<span face=""Tahoma",sans-serif"> </span>comments received<span face=""Tahoma",sans-serif"> </span>on<span face=""Tahoma",sans-serif"> </span>it form<span face=""Tahoma",sans-serif">
</span>the<span face=""Tahoma",sans-serif"> </span>basis<span face=""Tahoma",sans-serif"> </span>of<span face=""Tahoma",sans-serif"> </span>the<span face=""Tahoma",sans-serif"> </span>final<span face=""Tahoma",sans-serif"> </span>rule.</li><li>The Office – In the context of the MMA, this refers to Copyright
Office.</li><li><b><a href="https://www.gsa.gov/reference/gsa-privacy-program/rules-and-policies-protecting-pii-privacy-act">PII</a></b>
- Personally identifiable information</li><li><b><a href="http://service.ddex.net/dd/MLC14/dd/ddex_PLine.html">PLine</a></b> – DDEX
metadata field to indicate the year of first</li><li>release of an audio-only sound recording followed by the
name of the entity that owns the phonographic copyright thereto.</li><li><b><a href="https://en.wikipedia.org/wiki/Performance_rights_organisation">PRO</a></b>
– In the music <a name="_Hlk60963890">industry, this refers to a copyright performance
rights organization or society, which </a>licenses rights to publicly perform
musical works.</li><li><b><a href="https://www.federalregister.gov/documents/2020/12/31/2020-28958/the-public-musical-works-database-and-transparency-of-the-mechanical-licensing-collective#:~:text=The%20MLC%20must%20establish%20and,transparency%20across%20the%20music%20industry.">Public
Musical Works Database</a></b> – Under the MMA, The MLC must establish and
maintain a free-of-charge public database of musical work <a name="_Hlk60963950">ownership
information that also identifies the sound recordings in which the musical </a>works
are embodied, a function expected to provide transparency across the music
industry.</li><li><b><a href="https://www.grammy.com/advocacy/about">Recording
Academy</a></b> – A U.S.-based society of music professionals including performers,
songwriters, producers, and engineers.</li><li><b><a href="https://www.copyright.gov/about/leadership/">Register
of Copyrights</a></b> - The Register of Copyrights is the Director of the U.S.
Copyright Office and a recognized leader and lawyer within the U.S. government.
By statute, the Register works under the general direction of the Librarian of
Congress and carries out a variety of legal and policy functions that are
enumerated throughout Title 17.</li><li><b><a href="https://www.riaa.com/about-riaa/">RIAA</a></b> -
The Recording Industry Association of America (“RIAA”) is the U.S. trade
organization of major music labels.</li><li><b><a href="https://www.usa.gov/federal-agencies/copyright-office#:~:text=The%20Copyright%20Office%20administers%20the,the%20courts%20and%20the%20public.">U.S.
Copyright Office</a></b> - The Copyright Office administers the national
copyright system and provides advice on copyright law to congress, federal
agencies, the courts and the public.</li><li><b><a href="https://thescl.com/mission-and-history/">SCL</a></b>
- Society of Composers & Lyricists (“SCL”) seeks to advance the interests
of composers and lyricists working in the visual arts (e.g., film, TV, video
games).</li><li><b><a href="https://en.wikipedia.org/wiki/SFTP">SFTP</a> </b>–
Secure file transfer protocol</li><li><b><a href="https://www.songwritersguild.com/site/home/about-us">SGA</a></b> - Songwriters
Guild of America (and its predecessor-in-interest the Songwriters Protective
Association (“SPA”)) have represented the rights of songwriters since 1931.</li><li><b>SNBL</b> – A DMP that is a significant non-MMA blanket
licensee because it obtained one or more voluntary, or direct, licenses from
copyright owners and is therefore subject to earnings and usage reporting
obligations which are separate from those under the MMA.</li><li><b><a href="https://www.soundexchange.com/about/">SoundExchange</a></b>
– The agent designated by the Librarian of Congress to administer sound
recording performance rights in the United States, the organization collects
and distributes royalties on behalf of recording artists and master rights
owners.</li><li><b>SRCO</b> – A sound recording copyright owner.</li><li><b>Statute</b> – a law</li><li><b><a href="https://www.gs1-us.info/upc-codes/">UPC</a></b> –
A Universal Product Code is a unique code assigned to physical products in the
United States by the GS1 global standards organization, which is headquartered
in Belgium. Such UPCs convey data when scanned by retailers and marketplaces.</li></ul><o:p></o:p><p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal" style="margin-bottom: 0in;"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p></o:p></p><p>
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<p class="MsoNormal"><o:p></o:p></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comtag:blogger.com,1999:blog-2123228235986378478.post-62185208101023358502020-12-20T19:57:00.003-08:002020-12-20T19:57:34.704-08:00Definition of Royalties<div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dxNXj4URdQC58Goua0vFez0rId744ccYNpRs54V7OQwfz3GK2qpwM0EdY_ybAE2cRyD8jZ1OhcP356GnaLxMg' class='b-hbp-video b-uploaded' frameborder='0'></iframe></div><div><br /></div>"Royalties" are earnings in exchange for the right to use intellectual property. <p></p>Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.comtag:blogger.com,1999:blog-2123228235986378478.post-30971979389235452872020-12-10T21:11:00.004-08:002020-12-10T21:11:59.116-08:00Upcoming Audit and Objection Notice Deadlines for P.E. 12/31<p><span style="background-color: white; color: #59626a; font-family: Roboto; font-size: 14px; white-space: pre-wrap;">Attn. Counsel:</span></p><span style="background-color: white; color: #59626a; font-family: Roboto; font-size: 14px; white-space: pre-wrap;">Wait not until March to enlist our assistance.
Gratitude from your auditors,
Boschan Corp.
(424) 248-8866
<br /></span><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dxmRut4JZn5LuyiPK1mRqMmNnkPBAZsqWmLg419SEGcGW1w7H91knb7RrL9TijsAYw-F-K3mYoEQ6svQ9zRjA' class='b-hbp-video b-uploaded' frameborder='0'></iframe></div><br />Cedar Boschanhttp://www.blogger.com/profile/09968641068268982469noreply@blogger.com