944

The sixth season of the popular reality series, “Project Runway” (hosted by Heidi Klum) has been tripped up by the New York Supreme Court. TWC, the producer of the show, attempted to end its deal with Bravo after season five, which is currently airing, and inked a new deal with Lifetime. Unfortunately, Bravo is not going to let its most popular program go quietly and filed a successful injunction against Lifetime (and the Weinstein Company) that prevents them from promoting, marketing and ultimately airing season six of the show on Lifetime. There are a ton of juicy legal and non-legal details that occurred between NBC Universal and TWC which got them to this point (sorry, no steamy details involving Heidi Klum in the legal pleadings), but the bottom line is that if you are one of the many dedicated fans, you may now be able to win that spirited debate as to whether Tyra Banks or Heidi Klum has a more popular reality show. Written by: Richard B. Jefferson, Esq.

As we approach another round of fashion weeks (New York Fashion Week currently in full swing; San Diego Fashion Week - Sept. 28-Oct. 5; Los Angeles Fashion Week - October 10-17), I have been asked by a couple of new fashion clients to tell them what they can do to protect themselves legally from knock off designers. Unfortunately, this is not an area where the law provides solid protection so in the fashion world it is really more of how you can best protect yourself using the bodies of law available.

Not to bore anyone.. but basically there was a big push to protect the fashion industry a few years back but that bill died in Congress so now we are left with using what we have, Copyright Law, Trademark Law, and Contract Law.

Copyright Law is the protection of creative works. Unfortunately this does not extend to clothing (which is what the previously mentioned bill was going to do) so this body of law is limited to protecting the pictorial designs that a piece of clothing might have embedded in, or drawn onto, the fabric.

Trademark Law also does not provide general protection for designs but it could be used to protect the shape of a fabric design if that shape represents the clothing line. A trademark could protect you against a knock-off that confuses or misleads consumers or creates a substantial likelihood of such confusion (this was the basis for the Gwen Stefani v. Forever 21 trademark infringement case).

Finally, there is Contract Law that could protect you have someone sign a non-disclosure/confidentiality agreement, show them your designs and then they steal the pants (excuse the pun) off your idea.

In short, there is no specific law that protects the overall design of the clothing but if you have a creative lawyer then he or she should be able to come up with something.

Written by: Richard B. Jefferson, Esq.

Fashion week always brings a number of aspiring models to Los Angeles (and San Diego). This also brings out the modeling agency reps who look for new talent. The problem is that not all of these reps can do what they say and you, aspiring model, need to protect yourself from getting tied up with an agency that can’t help your career. When presented with a modeling contract, the most important term to pay attention to is the provision that states the rights being granted by the model. Many times modeling contracts will have broad language, such as (“Model grants any and all rights in Model’s career to Agency”), which can be interpreted as covering all areas of the industry. This is ok for a full service, well-known agency, but if an agency only focuses on one area (i.e., print ads), or you don’t know the history of the agency, you do not want to give up your rights to other modeling opportunities.

If the agency isn’t well known, then you probably want to tread cautiously and not sign any kind of exclusive deal initially. You don’t want to sign your modeling career over to some fast talking guy who turns out to be just in it to get close to hot chicks!

Written by: Richard B. Jefferson, Esq.

As we approach the Summer and everyone is ready to party like its 2099 (Prince needs to do a remix for this generation), there is a question that I know I will hear from at least one client in the next couple of months and it goes like this:

“So, I may have signed a contract, agreement, or some kind of paper while I was hangin’ out the other night, but I don’t remember what it was because I was drunk. Is that a binding contract?”

In the past, I have had this scenario posed to me in connection with transfers of music copyrights, permission forms to film someone naked, and use of a person’s likeness in connection with some sleazy products.

First, a bit of advice...stay away from contracts and pens while under the influence. A DUI will ruin your driving record. The wrong contract will ruin your career.

As for an answer to the question, a person’s understanding of the nature and significance of what he or she is signing while being intoxicated is important and could possibly cause the agreement to be voidable, but the better question is whether the other party had reason to know that the signer was intoxicated at the time of signing. If the answer is yes then there may be an argument for possible fraud, misrepresentation, duress or even coercion, depending on the detailed facts of the situation.

So, the next time someone sticks a pen in your hand and says, “hey, if you sign this I’ll buy you and your table drinks for the rest of the night”….think twice, tell him it’s not the time and give them your lawyer’s fax number….or else you may find your mug on the DVD cover of “Beverly Hills 9021-Ho!” and there may be little that you can do.

Written by: Richard B. Jefferson, Esq.

Lately, many of my company and investor clients have asked me about the different ways that an investment can be made. The true answer to this question is that an investment deal can be whatever the parties agree to.

Since broad answers usually leave my clients with that unsatisfied look on their face that says “I’m paying you legal fees for what now?” I like to follow those types of responses with a couple of realistic examples, such as:

There are two basic structures to taking on investors:

1) Rate Of Return Investor (no company ownership). An investor invests $100,000 in your company. You and the investor agree that the investor will receive 30% of all net income received by you with regards to the income generated by your company until the investor has received 2.5 times his investment, or $250,000. Once the investor has received $250,000 then you do not owe the investor any more money.

2) Equity Investor (ownership). You and the investor agree that in exchange for the investment he or she will have an equity stake in the company. For example, an investor invests $100,000 in your company and receives 30% of equity (shares if a corporation; units if a limited liability company) in the business. Investor will then be entitled to 30% of the business’s net profit for as long as the parties agree to.

There are a number of issues to consider when taking on investors (investor payback, investment ceilings, definition of net income, management participation in company, etc.), but those can be determined once one of the above basic structures is chosen.

Written by: Richard B. Jefferson, Esq.

I swear by bottle service. There is no point going for a night out if you don’t do it first class and bottle service is not only first class, but also fiscally prudent (we will do the math together later). After years of requesting bottle service in almost every city that I frequent including, LA, Vegas, Miami, New York, San Francisco and even Denver, let me tell you: ALL BOTTLE SERVICE IS NOT CREATED EQUAL!

True story. I was in Seattle over the weekend on business and I decided to call up some friends from my college days and hang out before I caught my flight back to LA. My friend Kevin suggested we meet at a new hot spot in Bell Town (Seattle’s equivalent of Hollywood but more like Los Feliz) called Gio’s. He knew a guy who knew the promoter or something like that.

10:30 PM: Me and my boys Desean and Troy arrive and get the typical pat down and interrogation from the club’s list nazi, we walk into a nice little crowd with a good mix of people and a mediocre DJ with a fondness for the Jackson Family. We look around for a minute and see the rest of our group holding up the walls. There are the usual greetings of hugs and hellos.

FIFTEEN MINUTES LATER: Now what? Five guys standing around gawking at half naked girls and talking into each others’ ears over the loud music. Finally, the smart one in the group states the obvious. “This sucks!” says Troy. “Huh?” replies another. “THIS SUCKS!!!! I have to get up early for church tomorrow, what am I doing standing around here like an idiot”. “I agree, do you guys want to get a table?” I say. “How much does that cost?” asks my cheap friend Kevin. “I don’t know,” I tell him, but in LA it’s anywhere from $500 to about $1,500 not including the tip.” “No way, I have a mortgage and two kids,” says Ed (Kevin’s equally cheap brother). “Yeah, I have a baby on the way. I’m not spending that much money for one night”, says Desean. “Guys,” I begin, “it’s well worth it (here comes the math I promised). There are going to be nine of us by the time everyone else arrives. Let’s keep it at no more than $900 and that’s about a $100 each. So for $100 you will get a table, liquor, personal service and the ladies are more likely to talk to guys at a table than any of these other cheap lumps grabbing their arms as they walk by,” I say to the single guys in the crew. They all look at each other and see the wisdom of my math. “Great. Let me find the promoter,” I say.

FIVE MINUTES LATER: I spot the Promoter. He’s easy to locate in a crowded club because for some reason promoters in every city all look the same. This promoter, Eric, was a real cool Filipino guy with spiked hair and a gang of hot girls around him. I approach. “Hi. Are you the promoter tonight?” He nods in the affirmative. We shake hands. “I’m John. How much for bottle service?” His eyes light up. This is my first clue that Seattle may not be a bottle service town. “About $400,” he says. Is that all? I think to myself. “I will give you $300 if you can get me the table in the corner (I can’t help negotiating even though I think it is a great price).” The table I want is the best table in the house. It’s right next to the windows so you can see everyone in line and more importantly they can see you and ignorantly wonder how you are able to afford bottle service. “Okay. But I can only do it for $350”, he says. “Okay. It’s a deal, but we also have a few more people coming to meet us and we don’t want them to have to wait in line.” He shakes his head in the affirmative and introduces me to his partner, a muscular, tight-shirt-wearing polite guy named Matt. Matt tells me to point out the rest of my party when they arrive and he’ll walk them right in. He takes my credit card and asks me what bottles we want.

So far so good. We sit at our table and begin catching up.

TWENTY MINUTES LATER: We notice that nobody has set up our table for us. This is odd. Every other city seems to have an army of pretty girls in black waiting in the shadows for someone to order bottle service so that they can parade out with ice buckets, glasses, mixers and water bottles the instant that you are seated. Hmmm, I remember Seattle being such a cool town when I lived there. Could Seattle be so far ahead of the rest of the country in technology and coffee but so far behind in nightlife? Even behind Denver? This calls for some serious investigation.

I text Eric: What’s the haps? No service yet. Eric makes his way over to us. “Nobody took care of you yet? I’m so sorry. Let me get someone right on it. And shots on me.” (Did I mention what a cool guy Eric is?) He bought us all a round of Patron shots and headed off to solve the kink in the system.

FIFTEEN MINUTES LATER: A dumpy rude blonde chick with a cold sore shows up. “What do you guys want, I have lots of tables?” We all look at each other in shock. Everyone glances at me to see if I am going to set this rude person straight. I decide to take the high road instead and reply, “We ordered about 20 minutes ago, can you please just check on that order? She turns away and walks out of sight without even acknowledging my request. I am expecting to hear a barrage of negative opinions about the “bottle service.” Troy is the first to speak again. “Did you guys see that huge blinking light on her lip?” “Yeah, it looked like raw bacon covered in lip gloss”, says Desean. “Her life sucks, herpes and a bad personality”, Kevin chimes in. Phew! No backlash about the bottle service gone wrong.

TEN MINUTES LATER: A pretty blonde named Samantha shows up with a smile and the bottles we ordered. She sets up the table, pours everyone drinks and asks if we need anything else. I stand up, press a $20 in her hand and whisper the secret bottle service code in her ear. She gives me a wink, walks away, and comes back a few minutes later with four girls in tow. This is more like it, I think to myself, someone who understands how all of this is supposed to work. I ask Samantha, “Where are you from?” She replies, “Chicago.” Okay, I’ve never been to Chicago but now I’m thinking Chicago must be a bottle service town. “Are you going to be taking care of us from here on?” I ask with hope in my voice. “No. My section is on the other side. Your server is running behind so I’m just helping her out”. Too bad I think to myself as I watch the only person in Seattle, who knows how bottle service is supposed to work, walk out of my life.

ANOTHER TEN MINUTES LATER: I get a text from my brother: We’re outside. Are you here? I text back: Wait up front. I will come get you. I find my brother, my sister and their small entourage. Once at the table, introductions are made and when my sister can’t find a clean glass for herself, I tell her to sip out of mine until the waitress returns.

ONE HOUR LATER: The rude waitress finally appears. Our last conversation went like so:

WAITRESS: “Do you guys need anything else?” ME: “I need four more glasses and would you mind checking up on us a little more often, these four have been here for an hour without drinks”. WAITRESS: Blank stare. MY SISTER: “Can I also have a glass of water, please?” WAITRESS: “If you get it at the bar yourself, it’ll be faster.”

I look at my sister and see her tense up. I know that look and this isn’t going to be good. MY SISTER: “You must not care about your tip.” WAITRESS: No reply. She turns and walks away. My sister stands to make chase. We all calm her and explain our theory that life has already punished this woman enough and we should just try to make the best of it. MY SISTER: “That was a cold sore on her lip? Whoa! From where I’m sitting and because of the strobe light, I thought it was a piercing or something. Poor girl.”

AN HOUR AND A HALF LATER: The rude waitress makes her final and only other appearance of the night. She doesn’t speak at all but sets the bill down with a half smile. As I’m reviewing the bill, I am debating whether to give the waitress the big fat ZERO that she deserves or whether to be a nice guy and help pay for the penicillin. Then I spot the line item that reads “18% GRATUITY INCLUDED.” What the &^%$$$?

Written by: John W. Fagerholm, Esq.

Lately, we have been bombarded by the media with the existing contrasts between Barack Obama and John McCain, whether it is the issue of health care, the economy, the war in Iraq, experience, their wives, or their patriotism to this country…but what about the indefinable “it” factor that the public is so concerned about with every other person who is chosen as the winner. The “it” factor conversation seems to always come up in the discussion of both politics and entertainment alike. I believe that it is because the winner represents the masses to others, whether it is your American Idol winner or your president who travels abroad. You don't want your American Idol's voice to crack in a concert in Paris where they are on the same stage as Les Nubians and you don't want your president to look like he couldn't hold his own if Nicolas Sarkozy (President of France) started talking smack.

So I ask, should charisma be a factor in choosing the man who represents you to the world?

Written by: Richard Jefferson

What do Pamela Anderson, Kim Kardashian, Paris Hilton, Cameron Diaz, Fred Durst, and Colin Ferrell all have in common? That’s right, Celebrity Sex Tapes and it seems to be the new rage in Hollywood, with a new one being released as often as main stream Hollywood block buster DVD releases, but what if after that exciting walk on the wild side you change your mind and don’t want anyone else to see it? Well, celebrity Hollywood if you think that it’s easy to stop someone from seeing you in your birthday suit, then this blog is for you.

In the past year I have had a few clients who have been faced with this issue surrounding the release of a sex tape so I was forced to do some research on the subject (mostly legal, but of course, it is important to see the tapes as well). It turns out that it is very tough to stop a sex tape from being legally released for the following reasons.

First, in order to stop a sex tape from being released the celebrity must be granted an injunction by Court, or an order to stop the distribution of the tape. Aside from the fact that it is difficult to get a Court to take sex tape injunctions serious enough to hear injunction arguments, if you are fortunate to get your day in Court, you have to prove that there is a “public interest” in stopping the tape from being released. In other words, you have to prove to the Judge that your drunken night full of wild kinky sex and a camcorder is more important to hear than preventing that predatory lending scheme from harassing someone’s Grandma or stopping Pee Wee Herman from popping up at the neighborhood elementary school. Probably not…

But lets say that you have the ingenious eloquence of convincing the Judge that your case should be heard, if so, then the second hurdle is to convince the Court that it is in the best interest of the public to stop distribution of the sex tape. It is a long shot…although I personally would hope that the Court would seriously consider stopping the distribution of a sex tape featuring Flava Flav.

Companies that put these sex tapes out know that celebs will have a really hard time legally preventing their release, so they do the smart thing and use the system to their advantage. These companies are genius at implementing quick and dirty gorilla marketing strategies. You won’t see any billboards that say “Coming Soon” or commercials during your favorite show. The strategy is to put out the buzz about the tape one or two weeks before it is released and try to get the media to latch on. The sex tape consumer isn’t exactly a picky group. There is no need for focus groups, or persuasive commercials. Once there is an awareness of your favorite celebrity doin’ the nasty then it pretty much sells itself.

So, the moral of this blog is to remember the next time you want to have your wild adventure recorded for kicks, think twice while watching that red blinking light. If you still want to “live it up” after that night out at Goa or Pure then either make sure that there is only one video camera in the room or destroy the tape after you view it or it may be slated for release before Iron Man goes to DVD.


So who really benefits from sex tapes? The Celebrity? The Distributing Company? Give me your comments.

By: Richard Jefferson, Esq.


Richard B. Jefferson, Esq. is a partner at Fagerholm & Jefferson, a Professional Law Corporation, located in Burbank, California (www.lawyersrock.com), a full service entertainment law firm.

Written by: Richard Jefferson

In the world of celebrity and fame the lines can sometimes become blurred between what is necessary and what is a luxury that can be replaced when it is out of fashion. A struggle for entertainment attorneys is to serve our clients and make sure they understand the necessity of having an attorney who understands the big picture (the business) and also the details (the client). Juggling these two dynamics can sometimes blur for clients what is important for their attorney to be involved with and what is something better suited for someone else to handle.

Entertainment attorneys are not much different than any other type of attorney. Entertainment is a business and most of what I do revolves around forming companies; protecting intellectual property; reviewing and drafting agreements; negotiating deals; and sometimes even litigating disputes. The only difference I can tell between entertainment attorneys and other types of attorneys are how differently our clients view us. Entertainment attorneys are increasingly expected to play more active roles in their client's lives and careers. Most of the time this is a positive experience and it benefits the client immensely. Sometimes however, you may represent a client that does not understand the limits of your role in their lives. I have learned now that I have to make it clear to these few clients why I am in their lives and what it is that I do so that I do not become one of their many accessories.

I first realized that some clients thought of me as an accessory when I bumped into a client at a club in Hollywood. The client invited me over to his table and made a big production about what a "bad ass" lawyer I was. The rest of the night I stayed at his table drinking and meeting random people that came to the table and each time I was introduced simply with "this is my attorney"... I decided after the third or fourth introduction that my client had either forgotten my name or it was very important to him that people knew he had an attorney. At one point, he entered into a heated debate with another celebrity sitting at the table about who had the better attorney. Surreal.

In the years that I have been representing celebrities it has become clear to me that having an attorney is a status symbol. It is a measure of success and legitimacy. I once received a 2 a.m. call from a client one Saturday evening-Sunday morning while I was engrossed in a rerun of "In Living Color". I looked at the caller ID and then the time and I thought for sure it must be an emergency. I answered the phone with the usual questions, "What happened?" "Are you okay?" His reply, "I'm good. Look, I met this girl and I'm trying to tell her who I am. She doesn't believe me. Tell her for me". My response, "Okay but [blank], I'm raising your rates" He says, "Cool, send me the new retainer on Monday" Hmmm, maybe it's not so bad being an accessory every once in a while.

John W. Fagerholm, Esq. is the Managing Partner at Fagerholm & Jefferson Law Corporation in Burbank, CA.
www.fjlawcorp.com

Written by: John W. Fagerholm, Esq.