Client Alerts – Page 2

Did Relativity Media Run a $100M “Romance Scam” on a Film Investor?

February 14, 2017

RKA Film Financing has sued a group of film executives and financiers claiming that they schemed with much-hyped film distributor Relativity Media to pull off a $100 million-plus fraud. Putting movie industry context side, RKA’s fraud allegation, in key respects, looks like a classic “Romance Scam”, in which the scammer:

“Bones” Complaints: Did Fox Properly Account for Hulu monies?

December 9, 2015

Twentieth Century Fox produces the hit TV series Bones for its broadcast network and also makes the series available on Hulu of which it is a one-third owner. Did Fox properly report and share monies it received from its license of Bones to Hulu? Two complaints recently filed by revenue

Glen Larson TV Profits Dispute: If You Wait to Sue, How Long is Too Long?

September 18, 2015

Glen Larson produced some of the most successful television shows of the 1970s and 80s…

The Walking Dead: Is AMC’s License Fee “Improper” and “Outrageous”?

March 31, 2015

In a pending lawsuit, writer/director Frank Darabont, creator of the

Harlequin e-Books Royalty Case: A Dollar or a Dime?

May 22, 2014

In entertainment and media, sometimes business practices evolve more quickly than standard contracts. As recently as 2004, Harlequin Enterprises, the leading publisher of romance novels, did not specify a royalty rate for e-books in its author agreements. Rather, e-book sales were lumped into an “other rights” category originally intended for

Crash Profits Restated; Court Responds with “Big Interest”

February 12, 2014

Can a film company issue a participation statement, then later revise and reissue it, making major changes in its favor? If the changes are decidedly wrong, can there be consequences? Profit definitions typically give film companies an express right to correct mistakes, even retroactively. After all, mistakes get made. But

Spamalot Profits and the Holy Grail: What is a Python’s Share?

July 12, 2013

Did the Pythons take a funny position? In 1974, the iconic British comedy troupe Monty Python scored big with their breakout movie, Monty Python and the Holy Grail (herein, Grail), produced by Mark Forstater and others. In 2005, they scored again, with Spamalot, the Broadway musical adaptation of Grail. When it came to profits

Motion Picture Investing: Avoiding Basic Mistakes

March 7, 2013

Sometimes, financiers from outside the entertainment industry seem to think: “I’ve succeeded in [real estate, tech, oil, fill-in-the-blank]. So I can make money in movies.” Then, too often, they invest and fail. Their mistakes typically involve both their business plans and (yes) their metaphysics. Common mistakes include: (1) departing from

Napoleon Dynamite Litigation: Pick the Correct Video Royalty

December 17, 2012

Participation reporting for certain media and uses can be idiosyncratic. Multiple Choice Question: Cult phenomenon Napoleon Dynamite generated a phenomenal $139 million in DVD sales in its first few years of release. What percentage of this amount did distributor Fox Searchlight share with the movie’s producers? A. 100% B. 31% C. 12.88%

Another $300 Million for Guitar Hero Purchase; When is a Statement Final?

August 17, 2012

Eager buyers often overpay for entertainment assets. Add a problematic earn-out[1] and the possibility of overpayment increases. In the latest Guitar Hero case[2], the problem was that an earn-out statement became final against Viacom, the purchaser of videogame company Harmonix Music Systems, notwithstanding a sudden, rapid decline in the value of Harmonix’s