In the age of new media, record labels and artists have many opportunities to make money, but also must be cautious about downloading royalties, copyright licensing, and protecting their income streams. High-profile artists such as Eminem, Jay-Z, and Madonna and their labels must constantly watch over iTunes downloads, YouTube streams, Wii games, and other emerging digital players to see if their rights are being violated and profits diminished.

New technologies are created so often, and with that new providers of entertainment products and content are jockeying to attract consumers. Whether you are starting a record label or are an established music heavyweight, it is crucial to have a lawyer that knows how to guide you through the new media and music laws.

Entertainment attorneys will structure, negotiate and update contracts and agreements for Internet and new media outlets. As advertisers and marketers look to deliver information and entertainment to the masses, lawyers will counsel on finance, production, licensing, and the sale of intellectual property to be broadcasted on the Internet, cell phones and wireless devices, interactive and video game platforms and other digital channels.

Product placement and brand integration ventures in feature films, television, and new media are also areas where a lawyer can ensure both the business and creative rights of the label and artist are upheld. Many labels are also creating “360 deals” to increase revenue streams through tours, concerts, merchandising and new media partnerships.

Record labels realize the importance of YouTube, for example, to virally show off their artists. It is hard to control postings of copyrighted materials by fans, so labels work with their lawyers to negotiate licensing terms for their songs and videos that appear on the popular website. And with increasing sales of digital music and fewer CD sales, downloading royalties can rack up to millions of dollars in revenue for artists and labels.

Any size record label can benefit from a savvy entertainment lawyer to establish the label name, website presence and connect them with start-up capital opportunities and marketing professionals. From business plans to product launches and artist contracts, they can buffer the label and artist from the cutthroat music industry.

For those that are starting record labels, lawyers will give you vital advice to build the record label of your dreams. Armed with an excellent entertainment lawyer, a record label can last longer and protect their image and creative brilliance.

The Law Offices of Spotora & Associates has decades of experience representing musicians and record labels in Los Angeles, Southern California and the world. They have worked with some of the biggest talent in the industry and have a hands-on approach to give their clients the utmost in individualized attention.

Anthony Spotora is a Los Angeles entertainment lawyer and Los Angeles business attorney. To learn more, visit Spotoralaw.com.

Los Angeles – In the New Year, there are many benefits to opening or acquiring a subsidiary company. With the economy in the doldrums, it is possible to obtain control of another company with less investment than it would be to consolidate or merge. A parent company must only have a controlling interest in the new company.

Parent companies, also known as holding companies, and their subsidiaries are deemed separate legal entities, so the parent company’s assets are not exposed to creditors’ claims that could come against the subsidiary. Each subsidiary has its own management team and is responsible to the holding company for its own profits and losses. Underperforming subsidiaries can be sold off without tarnishing the parent company’s assets and credit ratings.

“Today’s marketplace is not easy to thrive in, so having a lawyer when starting a business or acquiring a new one can mean the difference in your bottom line,” said Anthony Spotora, Los Angeles business lawyer. “We go over specialized tax structuring advantages, how to limit personal liability and what documents are necessary to keep your company in good standing.”

The parent-subsidiary structure allows for decentralized management and fees. Their corporate identities can be very distinct, yet the holding company can benefit from positive recognition and at the same time offer specialized staff that can benefit the subsidiaries.

When it comes to taxes, a consolidated tax return can be done when the parent company owns at least 80 percent of the voting stock in the subsidiary. Losses from one subsidiary can be used to offset profits on another side of the business to decrease taxable income on the tax return.

The Law Offices of Spotora & Associates work with individual clients as well as corporate clientele that range from closely held corporations to Fortune 500 standouts. Anthony Spotora, Managing Attorney, counsels on the establishment and structuring of various legal enterprises, advising clients on business operations as well as legal and tax issues involved.

To learn more, visit https://www.spotoralaw.com/.

Los Angeles – The LA based law firm, Spotora & Associates, P.C., long acclaimed as a “Unique Legal Boutique” and which curated The Virtual Lawyer, an innovative program and business model that methodically blends high-level legal services with technological advancements, has been sparking the interest of not only other attorneys and law firms, but attention has been further raised with top insurance heads.  Why?

When asked, Anthony Spotora, Managing Attorney to the firm shared, “[T]here is an overwhelming and common price gap in the legal industry between junior and senior counsel; so much so, many who are in need of legal help are begrudgingly left to accept the former, anxiously aware that they may get what they pay for.  Virtual Lawyer changed that, and more, and I guess we are doing something right. I have been repeatedly asked the same questions about our firm’s operations. First, from other attorneys; that seemed reasonable enough. However, when the heads of insurance brokerages also independently asked how we were accomplishing some of our objectives, I figured we might really be onto something.”  Spotora told us that he later learned that some of the inquiring attorneys attempted to replicate the firm’s business model.

In the end, the result of the firm’s inventive business model helps potential new clients get more affordable access to expert legal advice.  And while some of the firm’s operational methods remain confidential, the firm seems to believe the primary ideologies behind The Virtual Lawyer are simply based on an emergence of the inevitable “new-age” of law.

The firm’s services and operations notably get them regarded as a cutting-edge law firm and clients undoubtedly appreciate how the firm’s forward-thinking and subsequent implementation of available technologies provide them with both a financial and a service-quality advantage.

Spotora & Associates counsels on business, corporate, entertainment, and intellectual property laws. They also are broadly experienced in labor and employment laws, real estate matters, family law, and estate planning. From Fortune 500 companies to individuals, the firm is known for their dedication, innovation, and results-driven passion for the practice of law.

To learn more, visit https://www.spotoralaw.com/.

Both talent managers and talent agents try to find work for their clients, but each has a different manner of going about things.

For example, talent managers often work with a much smaller group of clients – often a couple dozen or less – when compared with talent agencies, which can have hundreds of clients. Agents primarily deal with casting directors to place actors in particular jobs. But talent managers also have relationships with producers and directors and others in the industry.

Talent managers, in short, help guide careers and can provide more personal attention and typically have a greater network at their disposal. Naturally, they also usually charge more.

For starters, agents are licensed by the state they work in and most commonly earn their money by negotiating deals for their clients. Typically, they also enter into a client agreement which is, in pertinent part, regulated by industry labor unions such as, the Screen Actors Guild (SAG), the Writers Guild of America (WGA) and, the Directors Guild of America (DGA). Through these regulated agreements, the commissions that agents charge their clients are legally bound to a prescribed percentage. Furthermore, it should be noted that agents may not serve as a producer on their clients’ projects.

On the other hand, managers are not commission-regulated, do not need a license to “manage” and, can charge their clients 15 percent or more. . . and often do.

The length of a contract with a talent manager can vary. Managers only get paid via commission, but a really good manager will actually cover various costs for his/her client due to their belief in their success and the manager’s ability to make things happen. It is also important to also choose someone who will actually take the time to help his or her client.

An actor with little or no experience may be willing to just sign up with any manager, but it is important to take a detailed look at the contract that is being offered. More than likely it will be a “standard” contract, but there is always an opportunity to seek adjustments.

Consider Before Signing

It is prudent to research a talent manager before signing a contract. Ask for references. Research court records to see if they have been involved in any lawsuits. And ask around the industry.

Before signing, it is also wise to have an entertainment attorney review the document. The money spent on the review could be well worth the cost of future problems.

Anthony Spotora is a Los Angeles entertainment lawyer and Los Angeles business attorney. To learn more, visit Spotoralaw.com.

For those with a successful business, franchising can be a good way to expand quickly and perhaps stay ahead of the competition.

After all, franchising brings little risk to the franchisor as the franchisee is the one putting up his or her capital when opening a new unit.

What is a franchise?

Franchising is the selling of a particular business model and method.

“The franchisee will pay an upfront fee for the right to use a name and/or trademark to open a business and to receive the proper training,” said Anthony Spotora, a Los Angeles-based business lawyer. “Often, the franchisee will also pay an ongoing percentage of sales to maintain its rights and keep receiving assistance in various areas such as advertising, marketing and operational management.”

Franchising a business has many pros, but it is important to undertake such an endeavor only after careful thought. Business owners put their hearts and souls into their businesses and often believe wholeheartedly in what they are offering to the public, but the reality is that the franchise model is simply not right for every business.

Things to Consider Before Taking the Plunge:

-Can this concept or product survive in other markets? What is a success in one region may be a failure in another. While the franchisee is the one taking the financial risk, poor performance can obviously have a negative impact on a name or brand.

-Will others want to buy this concept? Can others see the value in this particular model and method of doing business?

-Is there a manual of operation? Investors need to see that there is a method for running the business and an explanation of how they will receive training in the opening and operation of the business.

-Is there a prototype or a proven record of performance? Investors are more likely to believe in a concept or product that has a track record of success rather than one that has yet to get off the ground.

“Franchising is regulated by state and federal law. It is important to stay abreast of those rules and regulations. Those who do not follow them could end up seeing large fines or felony convictions,” Spotora said.

For those thinking about franchising a business, it is important to speak with an experienced business attorney.

To learn more, visit https://www.spotoralaw.com/.

When one successful company merges with or acquires another successful company, the deal attracts a lot of attention, particularly when the players are big names in high-profile industries. The growth potential of each entity can be enormous.

But what can also be profitable are strategic “carve-outs,” which occur when assets are “scooped out” of an ailing company. You may be able to purchase just the piece of the company that you are interested in, or you may be able to buy the entire company and then sell off the assets that you don’t care to keep.

There is more inherent risk with carve-outs because you are dealing with something that is currently troubled financially. The flipside is that these assets often come at a reduced price.

When looking to purchase a carve-out, it is imperative to look at every piece of the company’s financial puzzle and be sure the asset can be turned around successfully. Thorough analysis is paramount.

Some of the questions you want to ask yourself:

-From the ground up, what problems did the asset or company face?

-What does the expense structure look like?

-How long will it take to make the necessary adjustments for the company or asset to become profitable?

-Is the risk worth the potential reward?

Just because an entire company or asset is not performing well doesn’t mean it is worthless. Perhaps the asset simply needs a shift in its business strategy or a minor restructuring of its finances to put it in the black.

When looking for a carve-out, the best bets are within industries that you have experience with or carry the potential for “synergy” with your current business. This can save a lot of money and make the deal more profitable in the end. For example, if you manufacture household goods, you would do best to purchase a product that can be easily integrated into your current operation. Because you are purchasing a troubled asset, it makes little sense to take more risks than necessary.

While companies seeking carve-outs usually look to their local competition, sometimes it makes sense to go beyond your own borders, too, particularly in today’s challenging economic climate. To stay competitive and to diversify in tough times, it may make sense to expand to a global market. Of course, that carries with it a whole host of added legal requirements.

If you are a company looking to “carve-out” a competitor’s assets, it is important to speak with an experienced attorney.

Anthony Spotora is a Los Angeles entertainment lawyer and Los Angeles business attorney. To learn more, visit Spotoralaw.com.

If you are serious about the music you create as a composer, you should be serious about music licensing.

Music is everywhere in the world of entertainment: Movies, television, radio advertisements and commercials. There is always a need for top-notch songs and artists.

“For an upcoming composer, licensing music is a vital step in growing a career,” said Anthony Spotora, a Los Angeles-based entertainment and business lawyer. “Licensing music means that your creation is not only protected from illegal use but can also bring a source of income and bigger name recognition. If the people behind a commercial or feature film like your composition, for instance, they will request a music license for the piece.”

While music licensing can be lucrative, it is important to become educated about the process and to receive adequate representation to secure the best deals for oneself.

There are several options for music licensing. One of the best-known options is to register and become a member of ASCAP, BMI or SESAC, which are also known as performing rights organizations (“PRO”).

Such companies collect millions of dollars annually for composers and publishers for so-called performance royalties, but you must be registered as a member to see this income.

“Performing rights organizations act as middlemen, essentially,” Spotora said. “When a song is  ‘performed’ – this includes usage in commercials, airplay, etc. – the user pays the PRO rather than the copyright holder directly. The copyright holder is then paid a royalty by the PRO.”

A separate option is to connect with a publishing company. The publisher will handle issues such as music licensing, collecting royalties and negotiating licensing figures. If your publisher works hard and is well-connected, it can generate serious income for you as a composer and catapult your career to new heights.

If you are a composer, it is important you understand how to properly protect your music as well as secure the most desirable music licensing deals. For questions about legal matters pertaining to music licensing, contact an experienced entertainment attorney.

Anthony Spotora is a Los Angeles entertainment lawyer and Los Angeles business attorney. To learn more, visit Spotoralaw.com.

In today’s economic downturn, more and more businesses may be looking to alter their business models. Such a plan for change is often referred to as a corporate turnaround strategy.

With revenue streams suffering, it can be difficult to figure out what to do when your business is experiencing such disappointment. But with the few tips below, it is possible to develop a plan that will help you identify problems and alter the course of your business for the better.

1. If your business is experiencing problems and feels like it is in freefall, the first step to take before you do anything else is to seek stabilization. Take a look at what assets are critical for the survival of both the company and its ownership and then protect and preserve those assets.
2. Next, you need to undertake a lengthy and comprehensive identification period. You need to get back to finding out what your business is all about. What are the core values that your company holds? Who are your main customers, and are you continuing to provide them with goods or services that they want? What do you really stand for? Have you gotten away from your business principles?
3. Once you have answered these questions, you need to make an honest list of the core problems with your business. Seek input from not only management, but staff, too. What processes are counterproductive? What uncritical functions need to be scaled back? Remove the excess. Perhaps layoffs need to take place. Perhaps entire departments need to be scaled back. If it doesn’t fit with the core values of your business, it probably needs to go.
4. Put together an implementation plan for making these changes. Provide specifics on how these changes will be implemented. Develop a timetable for taking certain steps. Eliminate the chance of chaos by carefully explaining how the restructuring will take place.
5. Now you are ready for the actual restructuring. It will be all-important to follow the specified steps in your implementation plan.
6. Review your restructuring plan periodically and make updates and tweaks as necessary.

Undertaking a corporate turnaround can be a complex and stressful process. If your business is looking to complete a turnaround, it may also be helpful to hire a consult or an experienced corporate attorney who can offer a fresh set of eyes.

Anthony Spotora is a Los Angeles business attorney, intellectual property lawyer and entertainment lawyer.  To learn more, visit Spotoralaw.com.

Intellectual property is a complicated aspect of law, to be sure. It encompasses, among other things, copyrights and trademarks, and is intended to protect a variety of “creations of the brain.”

Copyright does not protect ideas, rather, but original literary and artistic works, musical pieces, discoveries, inventions, logos, designs, architectural creations, photographs and the like. The term “intellectual property” wasn’t used until the 1800s, though the foundation for the legal protection of intellectual property began centuries ago.

Section 106 of the 1976 Copyright Act generally gives the copyright holder the right to the reproduction of his or her work, to distribute copies or recordings for sale to the public, to perform or display the work publicly and to take other similar actions. The law also details “fair use,” which allows the use of copyrighted material for news reporting, criticism and other special cases.

Intellectual property also includes trademarks. Trademarks are protected by a sign or other indicator that can help distinguish one service-provider or goods manufacturer from another. The sign or indicator can include one or more of the following: a logo, a word or phrase and images. They are protected by the Trademark Act of 1946.

A trademark is essential because it serves to identify a particular business as the source of the service or goods. Registration of a trademark provides federal protection and a bundle of rights; however, use alone can establish common law rights. Those who infringe upon these rights can be subject to penalties.

Trademarks are registered in most countries and are also classified by the International (Nice) Classification of Goods and Services into 45 Trademark Classes. Numbers 1 to 34 concern goods, while numbers 35 to 45 concern services. For a trademark to be registered, it has to be original and cannot be deceptive or similar to trademarks that have already been registered.

Copyrights and trademarks are an essential part of many businesses. And in today’s world, when the rights of creators are being threatened by so many advances in technology, it is important to protect your creations.

If you are looking to file copyright or trademark papers, or believe that someone else has stolen your work or trademark, it is essential that you hire an experienced attorney.

To learn more, visit https://www.spotoralaw.com/

Becoming an S corporation for United States federal income tax purposes can be a very enticing thing to do.

S corporations are unique in that they don’t pay federal income taxes. The incomes and losses are divided among the corporation’s individual shareholders instead. Unlike C corporations, S corporations are not double-taxed through the company’s profits and shareholder dividends, which is perhaps the most important part of S corporation status. Predictably, this can result in substantial income savings.

There are a variety of other benefits a corporation can gain from electing to be treated as an S corporation, including the ability to offset losses against taxable income from other sources. Also, some corporate penalties and the federal alternative minimum tax do not come into play for an S corporation.

It is important to note that while S corporations have many advantages, there are other operational matters that should be considered. Firstly, there are other costs associated to S-Corp election, such as filing an annual S corporation tax return and quarterly and annual payroll tax paperwork. Individual and corporate assets also need to be separated.

Regardless, S corporations are becoming ever-popular in the United States. There were about 725,000 in the United States as of the mid-1980s, yet these numbers grew to more than 3 million by the early 2000s. They are currently the number one type of corporate entity.

But the Internal Revenue Service has had ongoing problems with S corporations, only 25 percent of which are believed to be in compliance. The IRS in recent years has worked to increase the number of taxes collected for S corporations.

The complete S corporation rules are contained in Subchapter S of Chapter 1 of the Internal Revenue Code (sections 1361 through 1379). It is a good idea to consult an experienced attorney to learn the ins and outs, advantages and disadvantages, of becoming an S corporation.

To learn more, visit https://www.spotoralaw.com/.