These agreements are not only key to establishing the rights and responsibilities of each partner, but they additionally serve as a guide throughout the relationship. And, should things eventually turn toward a breakup, proper expectations for the division of property and assets are already laid out within them.

Domestic partnership attorneys can assist in making the cohabitation agreement a legal, binding document. It will designate property, assign assets as the couple sees fit, and establish roles for parenting and child custody should that be relevant. The agreement will also define how property and assets will be divided should a separation or death occur. Essentially, same sex couples are creating the equivalent of a premarital or prenuptial agreement with the cohabitation document, and many LGBT couples are wise to have this agreement in place before registering their domestic partnership with the state.

A cohabitation agreement is also a fantastic way to have an open conversation about finances. Some partners might bring certain debts or big assets to the relationship that need to be discussed. A frank conversation about how credit cards will be handled, how money should be set aside for savings, and whether to keep accounts separate or joined is relevant to have. Goal setting is appropriate too, so any future property purchases and business ventures should be discussed. Domestic couples will most likely want to update the cohabitation agreement should a big step like this occur to protect each other’s rights.

In tandem with the cohabitation agreement, it’s wise to create estate planning documents so a couple can actually transfer property and assets should death occur. A will, living trust and power of attorney can be easily created by the same attorney in California.

Without these key agreements and documents, your life’s work could wind up in court and your partner could have to engage in a courtroom battle to keep assets, oftentimes ending up in the middle of a family squabble too. Creditors could also come after the surviving spouse for debts.

Each partner is advised to hire a separate California domestic partnership lawyer to create, review and sign the cohabitation agreement. Los Angeles domestic partnership lawyer Anthony Spotora commonly counsels same-sex couples to create cohabitation agreements, estate plans, and qualified domestic relationship orders. The Law Offices of Spotora & Associates, P.C., is skilled in making sure the financial issues, tax concerns, and each partner’s rights are upheld. Their expertise will safeguard your wishes during the partnership and the livelihood of your estate and heirs.

For more information:
www.spotoralaw.com
Law Offices of Spotora & Associates, P.C.
1801 Century Park East, 24th Floor
Los Angeles, California 90067-2302

P (310) 556.9641
F (310) 556.9642
Toll Free: (877) 4U-EZ-LEGAL

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

Big music acts and up-and-coming stars can rake in quite a bit of income playing at festivals such as the upcoming Coachella Music Festival in southern California. Especially when backed by ample marketing budgets and social media, it is no wonder the festival sold out one week after the lineup was announced this year. Now it remains to be seen if the 2011 festival tops last year’s numbers of 225,000 fans and $21.7 million gross revenues.

Behind the scenes, one of the most important players for musicians and bands is an entertainment lawyer. With big festivals and large venues, bands will want to be prepared to sign performance agreements and oftentimes need an experienced entertainment attorney to ensure they understand the agreement and that their rights are being upheld. An attorney can be vital to negotiating the payment terms, merchandising agreements, cancelation clauses, permissible video and audio recording equipment, and ensure the band will not be liable for any and all damages that could occur while performing in the venue.

Most musicians might not love this side of the business, so that is why getting legal counsel early on can leave the business of entertainment to the attorney and the band can continue focusing on its creative output. Legal counsel shows everyone a band deals with that they are professionals and are serious about what they do. Attorneys are great at looking over the necessary agreements and any side contracts for loopholes and further enforcing contract terms when other parties decide not to meet the stipulations agreed to beforehand.

Beyond big festivals and concerts, entertainment attorneys can provide guidance on management agreements, recording contracts, copyright and trademark matters, licensing and royalty agreements, and endorsements and partnership contracts, just to name a few. Some entertainment attorneys can also give clients business planning and career advice. The music business is full of horror stories about bad promoters, shoddy venues, and broken promises, so a good entertainment lawyer can help a band through the complex music industry.

A hands-on entertainment lawyer is a key part of a band’s success. It takes a team approach to make it big in the music industry, so having a lawyer who will be proactive with all the other team players – agents, booking agents, record labels, and other key contacts – will only increase a band’s buzzworthiness and chances of financial success.

In California, Los Angeles entertainment lawyer Anthony Spotora has many years of experience with bands, musicians, songwriters, record companies, and music publishers. The Law Offices of Spotora & Associates has extensive music industry contacts and a reputation for individualized attention and dedication to helping creative individuals thrive in the music business.

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

In February, the Ninth Circuit Court of Appeals denied the U.S. District Court for the Northern District of California’s analysis of the Trademark Dilution Revision Act (“TDRA”), thus allowing Levi Strauss another chance to debate its claims that Abercrombie is trying to mimic Levi’s famous arch design on the jean back pocket.

The Ninth Circuit asserts that the Trademark Dilution Revision Act does not only mandate that a design must be “identical or nearly identical”, but for a dilution claim to be valid, the plaintiff must show six factors, including the prevalence of similarity and that a junior mark is “likely to impair the distinctiveness of the famous mark.” Soon enough, the District Court will be hearing the case again since the Ninth Circuit deemed Levi’s has enough of a claim.

Levi’s has been selling blue jeans since the 1870s and its trademarked “Arcuate” back pocket design with two connecting arches has always been a strong visual identifier for the brand and its wearers. Jeans with this back pocket design equal an estimated 95 percent of Levi’s sales and in the last 30 years raked in $50 billion in revenue. In 2006, Abercrombie began using a “Ruehl” design with two less-pronounced arches that Levi feels dilutes their stitching mark.

Apparel companies and businesses in general spend tons of money and lots of creative effort to have their brands stand out from the competition. The lawsuit brings up questions of how the courts will rule for similar design and logo concepts. In this instance, will the courts allow all jean companies to use arches, therefore diluting this identifier in infinite ways? Some say it is akin to letting other computer companies use the sign of the bitten apple, diminishing the power of a visual cue that a company has cultivated for its own benefit in the public’s consciousness.

The TDRA requires that a company alleging dilution by blurring of the designs show an overwhelming degree of dilution. The ruling can compensate for likely, not necessarily actual, dilution and separately, injunctive relief.

The six factors include the:

– degree of similarity between the mark or trade name in question and the famous mark

– degree of inherent or acquired distinctiveness of the famous mark

– extent to which the owner of the famous mark is engaging in substantially exclusive use of the mark

– degree of recognition of the famous mark

– whether the user of the mark or trade name in question intended to create an association with the famous mark

– any actual association between the mark or trade name in question and the famous mark

The Ninth Circuit court drew a line in the sand to follow the rationale of the TDRA and not any pre-TDRA rulings that required marks to be substantially similar to seek dilution decisions.

“The degree of similarity between the Ruehl and Arcuate marks may be insufficient to support a likelihood of dilution, but that conclusion can come only after consideration of the degree of similarity in light of all other relevant factors and cannot be determined conclusively by application of an ‘essentially the same’ threshold,” said Kenneth F. Ripple, Senior Ninth Circuit Court Judge.

In California, Los Angeles intellectual property attorney Anthony Spotora is paying close attention to how the case will be decided. This case as well as other business needs show that legal counsel is crucial early on for a brand. From trademarks, copyrights, product launches, and contractual agreements, an experienced attorney can help protect a company’s rights from the start-up stages to ensuring its assets are safeguarded each and every day.

The Law Offices of Spotora & Associates defends clients’ intellectual property rights throughout California, the U.S., and abroad. They are known for their senior-level counsel and personalized attention to give each client exceptional results.

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

Two common grievances include businesses being accused of dishonest practices and discrimination. Competitors and unhappy individuals are usually the ones blamed for trying to undermine the business’ reputation on online chatrooms, Facebook, “protest websites”, and mass e-mails. But to show that a business is a victim of defamation, it must show that the published statement was false and resulted in a loss.

As soon as a business realizes that the unflattering material is on the Web, it is advised to keep thorough records of what is being posted. Compile a list of all websites that have the defamatory statements. This will be useful evidence in the courtroom or for takedown letters that reputation management services create. Also, keep records of sales numbers from before and after the harsh content appeared on the Web. This will help show the loss incurred and aid the court in calculating damages.

And do not fall into the knee-jerk reaction of trying to threaten the author, publisher or website. A lawyer can help get the bad content removed, but not if you are threatening them and have the police at your door to calm you down. Section 230 of the Communications Decency Act does protect webmasters and hosting companies from being held liable for what another user posts on their website unless it can be proved that the specific individual was responsible for its publication. An Internet company that permits criminal acts or intellectual property infringement may still be held liable, so it is advised to get an experienced attorney early on when an issue occurs.

In order to protect the business, a company will want to get legal counsel and serve the wrongdoer with a civil action alleging defamation and libel. Many businesses do not know who harmed them as oftentimes the degrading postings are by anonymous authors. Businesses are advised to provide a notice in whatever medium the original posting was made to make the anonymous author aware of their wrongdoing before any subpoena is enforced. The case will initially be against a “John Doe” defendant and through the discovery process, ISP records and other pertinent information will reveal their true identity.

Good attorneys will help their client win monetary compensation and an injunction that forces the author or website to remove the offending material and refrain from defaming the business in the future. Otherwise, the author could be fined or jailed for contempt of court.

The Law Offices of Spotora & Associates has decades of experience representing individuals and businesses in defamation cases from sole proprietorships to major international corporate entities. Their clients are actively involved in various industries including technology, marketing, communications, pharmaceuticals, retail sales, manufacturing and distribution, as well as restaurants and nightclubs, film, television and multimedia productions. Their lead Los Angeles business lawyer, Anthony Spotora, is one of the area’s top attorneys who is well versed in both business and Internet law.

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

A business should protect its website and all the content, design and graphics by copyrighting it. This way, it protects all the original works of authorship as well as the look and feel of the website. Be sure to request ownership of the copyright in a written agreement if an outside company creates the website. This could increase the fees from the graphic design company but then later on the business could have the authority to use the same graphics and content on promotional materials such as brochures and mailings.

Copyright protection starts when the work is fixed in a tangible medium. Use the copyright symbol to inform others that the business has control over the display of the website, its production and distribution. State in the fine print that the business has created the website and is copyrighted. By copyrighting a website, it will be easier to seek court enforcement of the copyright should a copycat come along.

“A business and its employees work hard to create and maintain an Internet presence that will generate revenues and continue the marketing efforts,” said Anthony Spotora, Los Angeles business and intellectual property lawyer. “A good lawyer will help their clients protect their Internet business assets through copyright protection services.”

Copyright infringement is a very serious matter and should a programmer even copy code from another website, a business could be on the wrong side of the law. Websites can be shut down without notice as a part of the Digital Millennium Copyright Act and “blacklisted” from Google. Google will remove sites that infringe on another’s intellectual property, program its spiders to avoid the site, and ban it from its Adwords and Adsense programs.

It pays to hire a business and intellectual property attorney to assist with trademarks for domain names and unique business phrases, copyrights for the website, and contractual agreements for creative services done both for the website and with vendors used during daily business transactions.

Spotora & Associates has more than a decade of experience representing clients from start-ups to established national corporations with their website and intellectual property concerns. They are skilled in researching, registering, and protecting intellectual property rights throughout the United States and abroad.

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

Many lawsuits apply the legal theory of the “alter ego” wherein the corporate entity is shown to be a sham and/or an alter ego of one or more individuals that have brought on injurious conduct and who essentially utilized the entity as a blanket to hide behind. Oftentimes this allegation comes into play when a corporation’s assets or insurance are inadequate to pay debts or claims. The shareholders can become personally liable.

In California, two requirements must be met to pierce the corporate veil:

1)     Unity of Interests – the shareholders in question must have treated the corporation as their alter ego; and

2)     Inequitable Result – the shareholders sanctioned fraud or injustices.

A step-by-step process is commonly used to examine and ultimately determine if alter ego liability is appropriate in a lawsuit. The landmark case of Associated Vendors Inc. v. Oakland Meat Packing, Co. spells out the steps to determine the severity of their actions:

1) Did the individual(s) act in bad faith?

2) Did the individuals contract with one another with the intent to avoid performance by using a corporate entity to shield against personal liability?

3) Did the individuals divert assets from a corporation by or to a stockholder, other person, or entity to the detriment of creditors?

4) Is the corporation dominated by a few key individuals?

5) Is the same office or business location used by the individuals and corporation?

6) Did the individuals and the corporation employ the same attorney?

7) Did the individuals use the entity to procure labor, services and merchandise for another person or entity?

8) Did the individuals fail to adequately capitalize the corporation?

9) Did the individuals fail to maintain minutes or adequate corporate records?

10) Will there be an inequitable result if the court fails to pierce?

A plaintiff has the burden of establishing alter-ego liability. Courts do not typically make a distinction between different forms of corporations, whether they are non-profit or for-profit, so alter-ego liability is evaluated equally.

If a corporation is properly created and maintained, shareholders will not be liable for corporate debts or exposed to lawsuits. Shareholders must uphold corporate formalities and avoid any misuse of corporate funds, property and means of manipulation.

The keys to making sure an entity stays separate from its shareholders are:

1) Documentation and Formalities: Ensure that all letterhead, business cards, and corporate signs include the words “Inc.” or “Incorporated”, for example. Shareholders who sign contracts or documents should sign them in a corporate capacity indicating their corporate position. Create by-laws, issue stock, maintain corporate minutes, have separate account books, file annual reports, and have regular board meetings with all directors.

2)  Avoid Co-mingling: Never co-mingle corporate assets with those of the shareholders. Corporations should have their own separate bank account. If you borrow from or lend to the corporation, record an appropriate resolution, sign a promissory note, charge a fair market rate of interest, and make regular payments.

3) Capitalization: Capitalize the corporation sufficiently and purchase adequate liability insurance.

4) Employment Agreements: Establish one between you and the corporation.

5) Multiple Corporations: Avoid identical stock ownership of several corporations along with similar officers and directors. Use different business addresses, telephone numbers and employees.

This valuable advice is critical to minimize a corporation’s exposure to litigation and help them manage their operations. Small and big companies need to understand the importance of having a lawyer to help them with increasing complexities in today’s business environment.

The Law Offices of Spotora & Associates has decades of experience for both businesses and the shareholders that run them. Their services range from counseling individual and corporate clients domestically and internationally, to assisting in business management and maintaining corporate records.

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

What is an LLC?

A “Limited Liability Company” (LLC) is a hybrid between a partnership and a corporation. It has the operating flexibility and “pass through” tax treatment of a partnership with the limited liability for its “members” accorded to corporate shareholders. “While an LLC is a business entity, it is best to think of it as an unincorporated association,” said Anthony Spotora, a Los Angeles-based business attorney. “Although sometimes incorrectly referred to as Limited Liability Corporations, they are in fact not corporations.”

Further Benefits

LLCs are highly attractive to some because of the flexibility in tax choices. LLC business ventures qualify for a single layer of taxation, which prevents ownership from being double-taxed under the corporate tax structure.

“However, LLCs may also elect to be taxed under a corporate tax structure if they wish,” Spotora said. “In fact, the full list of taxation choices for LLCs are as a sole proprietor, a partnership and either an S- or C- Corporation.”

LLCs also often require much less administrative paperwork and record-keeping than do corporations. The laws also allow LLCs to customize the rules for how the LLC is best operated.

Drawbacks

Some people feel that LLCs do have disadvantages, however.

In California and a handful of other states, LLCs must pay a franchise or capital values tax on the business.

LLC’s in California must pay an annual tax to the state’s Franchise Tax Board. The fee is $800 per year, though if the LLC’s net annual income exceeds $250,000, then there will be an additional fee that must be paid, too.

Also, some people believe LLCs have a more difficult time raising financial capital because investors may be more comfortable investing funds into corporate firms.

If a person is considering making their new business venture a Limited Liability Company, it is important for them 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.

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.

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.

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 http://www.spotoralaw.com/.

Oftentimes, individuals have only one or two quick legal questions to ask and wish they could get a simple yet reliable answer from an experienced attorney without going through the hassle of making an in-person appointment or worse, tendering a large retainer and formally establishing a long-term attorney-client relationship. The problem is, the Business & Professions Code, along with most State Bar Ethics Rules, including California, can prohibit and/or heavily warn against lawyers from lending legal advice in the absence of an attorney-client relationship. To resolve this dilemma, Spotora & Associates created their Virtual Lawyer program. The program provides potential clients with a simple means of establishing a temporary attorney-client relationship and meeting with an attorney face-to-face using videoconferencing technology, at an extremely affordable price.

Don’t like videoconferencing or don’t have it available? No problem. Once the temporary attorney-client relationship has been formed via Spotora & Associates’ website (www.spotoralaw.com/virtual-lawyer), the legal advice needed can be provided over the phone! Users can have their legal questions answered in a timely fashion, no matter where they are in the world.

It was the firm’s CEO and Managing Attorney, Anthony Spotora, who developed the concept. When interviewed on the thought process that led to such a method, Mr. Spotora shared, “After 10 years in business, one issue that consistently presented itself was callers seeking an answer to only one or two legal questions. Time and time again, we explained like a broken record that we were governed by laws and rules that limited the extent to which we could assist them in the absence of an attorney-client relationship. Even the infamous “Free Consultation” offered by most firms is intended to stop short of actually offering legal advice. Alternatively, up to the point of establishing a formal attorney-client relationship, free consultations are meant to only determine the issues raised by the facts presented, qualify that the lawyer or law firm is competent to handle the matter, and see if the parties are a good “fit.” I decided it was time to develop a solution to this repetitious issue and fortunately, the technology was available to do so. Hence, our ‘Virtual Lawyer Program.’”

To participate in the service, Virtual clients fill out and submit a short meeting request form on Spotora & Associates’ website (www.spotoralaw.com/virtual-lawyer) that details the topic they’d like to discuss, their preferred meeting time, and the video chat format that works best for them (unless they elect to be advised by telephone only). Virtual clients can then choose a 20 minute, 40 minute or hour long meeting package and, if their meeting request is accepted by the firm, they can make a payment through a secure payment gateway that will be provided to them by e-invitation. Based on the information provided, Virtual clients will then be able to chat with a senior-level attorney who has the experience and expertise to answer their legal questions.

Spotora & Associates’ Virtual Lawyer program is intended to give users the peace of mind necessary to make sound decisions in their personal and professional lives. This cost-effective legal service is ideal for those who have limited legal needs and do not require full-service representation. Users can proceed with confidence, knowing that they have consulted an experienced attorney without ever having to leave the comfort of their own homes.

Should Virtual clients decide to extend their relationship with the Law Offices of Spotora & Associates at the end of their Virtual Lawyer session, they have the option of requesting that their Virtual Lawyer payment be applied to the first hour of in-person, full service work.

Spotora & Associates primarily offer legal advice based on the laws of the state of California.

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