Contracts

19 Recordings, the entity that enters into record deals with the recording artists who win American Idol, has sued Sony Music for allegedly stealing millions of dollars after underpaying the company in terms of royalties. The 33-page complaint, available after the jump, opens with a list of American Idol success stories and then documents in detail how Sony Music reportedly stole millions from them. 

According to the suit, Sony misclassified streaming music sales to pay 19 Recordings less than what the company was owed.  Another claim is that Sony was supposed to obtain approval from 19 Recordings after a certain ceiling cost for advertising was reached, but Sony failed to seek that approval before spending 19 Recordings’ royalties without its consent. The remaining allegations similarly claimed underpayment for royalties, improper passing of expenses on 19 Recordings, not allowing 19 Recordings to audit all of Sony’s books, and claims related to royalties for individual artists.

Interestingly, 19 Recordings filed in federal court. 19 Recordings is the little guy in this action — with the backing of name brand stars — and it seems that the company might fare better in state court.  The suit comes just after Season 13 of the show premiered on Fox.  The suit seeks $7 million in damages and $3 million in prejudgment interest.

Keep reading to see the complaint…

double red triangle arrows Continue reading “Is Sony Stealing Money From ‘American Idol’ Stars?”

Lisa Kudrow

You really in real life bear no relationship to the character Phoebe, right?

Mark Baute, attorney for Scott Howard, while cross-examining “Friends” star Lisa Kudrow on the witness stand earlier this week. Baute accused Kudrow of “pretending to be dumb” and acting like her well-known character, Phoebe Buffay, during her testimony.

(Howard served as Kudrow’s manager during her time on the show, and claims he’s owed more than $1.7 million in residuals. A jury returned a verdict in Howard’s favor today.)

(c) Image by Juri H. Chinchilla.

With the snow melting in Sochi, “On Remand” looks back to one of the greatest moments in Olympic history. Tomorrow is the 34th anniversary of the “Miracle on Ice.”

In February 1980, the XIII Olympic Winter Games were underway in Lake Placid, New York. But a little-known group of hockey players had been practicing together for months, skating themselves to exhaustion learning coach Herb Brooks’s new, fast, and grueling style of play. Most of the players on Team USA were barely old enough to order a beer, and hardly any had played hockey professionally. In a few months, several would be playing in the NHL. But on February 22, they were underdogs against a Soviet team that had won the gold in every Olympic contest since 1956 — except for 1960, when the Americans stood atop the podium. A week before the 1980 games started, the Soviets had trounced the Americans, 10-3, in an exhibition game.

“Unless the ice melts” or some team “performs a miracle,” a sports writer quipped, the Soviets would win the gold medal again in 1980. And, for most of the U.S.S.R. versus U.S. game, that prediction appeared accurate. But with 10 minutes left in the game, Mike Eruzione, Team USA’s captain, scored a goal from thirty feet, putting the Americans up 4-3. They never relinquished the lead. As the clock ran out, ABC broadcaster Al Michaels delivered his now iconic play-by-play

double red triangle arrows Continue reading “On Remand: Museums Will Take The Shirt Off Your Back, But Will They Return It?”

* Randy Levine, president of the New York Yankees, has left Akin Gump’s dugout. He hopes to hit it out of the park and slide into his new home at Jackson Lewis. Please, no more baseball references. :( [Am Law Daily]

* Thanks to Virginia, the electric chair may be making a comeback when drugs for lethal injection aren’t available. OMG, that’s so freakin’ lame. Bring back the breaking wheel or death by disembowelment. [Gawker]

* A lawyer won’t have to pay an ex-law student $1M after making a hyperbolic challenge in a TV interview. Better luck reading the Leonard v. Pepsico case next time, pal. [Volokh Conspiracy / Washington Post]

* Protip: when you’ve been recommended for suspension for your “contemptuous attitude,” bragging that one of the judges who disciplined you thinks you’re “probably the best DUI lawyer” isn’t smart. [Santa Barbara Independent]

* If you watch The Walking Dead, you’ve probably wondered if all of the killing was legal — because you’re a lawyer, and you can’t enjoy anything anymore. Here’s your answer, from a UC Hastings Law prof. [GQ]

* If you’d like your chickens to live a life of luxury before you eat them and their eggs, then you’re going to love this law in California. If not, you can move to Missouri. See Elie squawk about it here. [ATL Redline]

* Ian Whittle, a recent George Mason Law grad, took a break from watching the saddest Super Bowl ever to save a little girl from drowning in a pond. Check out the news coverage, after the jump. [CBS 6 WTVR]

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Welcome to Above the Law’s newest feature, Fun With Fine Print. This occasional column will chronicle especially clever or awful examples of legalese, fine print, disclaimers, disclosures, and the like. Our readers who spend so much time toiling over contractual language, drafting it beforehand or litigating it after the fact, will hopefully appreciate — and contribute to — this feature.

We’ll start things off with an example of infamous fine print. Earlier this year, Subway got torpedoed over its regrettable response to a customer complaint. After Australian teenager Matt Corby complained that his “footlong” Subway sub was a mere eleven inches, Subway invoked the following fine print: “With regards to the size of the bread and calling it a footlong, ‘SUBWAY FOOTLONG’ is a registered trademark as a descriptive name for the sub sold in Subway® Restaurants and not intended to be a measurement of length.” Personally speaking, I think eleven inches is more than enough — but based on the uproar and litigation, maybe I’m in the minority.

Now let’s look at legalese worth celebrating, for its cleverness and its clarity. It also comes from a fast-food provider….

double red triangle arrows Continue reading “Fun With Fine Print: Fast Food Fun”

Each year, Corporate Counsel compiles a list of the law firms that Fortune 100 companies use as outside counsel. This year, to change things up a bit, it seems like the list has been expanded to cover the entire Fortune 500. From Apple to Yahoo, and every billion-dollar company in between, these corporate clients expect nothing short of the best in terms of legal representation when dealing with high-stakes litigation and deals. If you’re looking to line your firm’s pockets, you better head to the RFP line when these companies seek lawyers.

Up until last year, only the most prominent Biglaw firms (like Cleary, Davis Polk, Cravath, and Simpson Thacher) topped the list of those that had the pleasure of doing business with the country’s biggest companies. Things changed rapidly, however, when Big Business tried to cash in on deals for legal services. The firms that were willing to cave to the pressure of providing alternative fee arrangements won in a big way, and the rest were left in the dust.

Have these prestigious firms changed their ways? Is Corporate America again willing to open its fat wallet for them? Let’s find out…

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* Fine Print as “Surrealist Masterpiece.” Because sometimes you need legal analysis involving Foucault. [Concurring Opinions]

* Speaking of fine print, the story behind an attack ad in Virginia is all about fine print. Virginia AG Ken Cuccinelli is running an attack ad against Terry McAuliffe connecting him to the collapse of Global Crossing. The problem is the former Global Crossing workers in the ad thought they were talking to a documentary film crew about the company, not making an ad attacking McAuliffe. Should have read that waiver form more closely! [Mother Jones]

* JPMorgan Chase is dropping out of the student loan business. Must be getting too difficult to package likely defaults into some kind of billion-dollar derivative these days. [American Banker]

* A New York attorney candidly tells the world that dealing with his kids “is not my problem” because he has a long-suffering wife for that job. See conservatives, gay marriage hasn’t destroyed all the traditional families. [Dealbreaker]

* More analysis on the legality of intervention in Syria under international law. Welcome to the art of writing listicles, Lawfare! [Lawfare]

* A Q&A with Ignatius Grande of Hughes Hubbard & Reed on the importance of Twitter for clients and law firms. Intriguingly, Hughes Hubbard doesn’t have an active Twitter account. What gives? [Commercial Litigation Insider]

* The NFL’s concussion settlement wasn’t just about screwing over the former players, but about the NFL covering up its business practices. But who cares, KICKOFF TONIGHT Y’ALL! [Grantland]

* We’re not saying you should drop out of school, but if you do, try to make it like these people. Video embedded after the jump. [Bloomberg via YouTube]

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* Homeland Security Secretary Janet Napolitano is leaving the cabinet to head the University of California system. That’s a natural transition because UC already treats its students like threats to national security. [The Faculty Lounge]

* Texas banning tampons from the Texas Capitol building in advance of abortion vote. Guns are still fine though. In the words of the inimitable Spencer Hall, “But what about a gun that FIRES tampons, Texas?” [Huffington Post]

* A lot of folks are anticipating Noel Canning, but if Harry Reid invokes the so-called “nuclear option” (fifth item), does that render the whole case moot? [The Volokh Conspiracy]

* Three years for stealing an iPhone from a child. I guess it’s like taking Candy (Crush) from a baby. [Law and More]

* If you stop to think about it, someone should totally have sued the camp from The Parent Trap (affiliate link). If for no other reason than the likelihood Lohan was dealing to all the other campers. [Crushable]

* An iOS app for creating semi-bespoke contracts. That’s cool, but I’ll stick to Temple Run, thanks. [Associate's Mind]

Rihanna

* The Am Law 200 rankings are out, and the difference between the First Hundred and Second Hundred Biglaw firms has been described as “stark.” Check out who made the grade here. [American Lawyer]

* Many Biglaw attorneys are sharks, but at Crowell & Moring, a firm with a duck as its mascot, at least they’ve got hearts. They’re awaiting the birth of little ducklings outside of their office. [Washington Post]

* Spyfall, Round Two: General David Petraeus, of CIA and sex scandal fame, is joining private equity company KKR & Co. with Williams & Connelly advising on his employment agreement. [Am Law Daily]

* Want to know at which law school you’ll get the biggest bang for your buck? Want to see which law school is best at financial efficiency? You may be surprised at some of the schools on this list. [Morse Code / U.S. News & World Report]

* No, silly, he wasn’t being an antisocial gunner, he just wasn’t old enough to go to the bar with you. Harvard Law recently graduated one of its youngest African-American students ever. [Boston Globe]

* A legal Hail Mary? Joe Paterno’s family, former Penn State football players, and select members of the school’s board of trustees are suing the NCAA over its Sandusky sanctions. [Legal Intelligencer]

* A woman is suing MAC after she allegedly picked up the gift that keeps on giving from Rihanna’s lipstick: herpes! Chris Brown, don’t hurt me for implying it was from Rihanna. [New York Daily News]

Talking to my mother in Edmond, Oklahoma on Monday afternoon took a turn for the scary when she told me that Moore had just been hit by another very serious tornado and another one was (click)….

It took me two hours to reach my brother, who also lives near Oklahoma City, and who ironically enough works for a large cellular company. After my ranting about the lack of service that scared the bejeezus out of me, he informed me that while all was well with my family, Moore was devastated — again. I am guessing that some readers were around eight years old in 1999, when Moore was last left resembling Hiroshima in a Technicolor film. I am certain that some residents thought a once in a lifetime storm would never happen again, but it seems that Moore sits on some sort of Hellmouth. That’s the thing with tornadoes, they come out of the blue, there’s nothing you can do to stop them, and your only protection when you have no basement, is to hunker down in a bathtub and pray — and that’s if you’re lucky. It is the same thing with business catastrophes. And while that segue might seem rough at first blush, put in the context of this week’s damage, it makes a certain amount of sense…

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