Criminal Law

• Theft
• Misdemeanors
  At the current retail price for singles, the willful "file sharing" of as few as 150-170 songs during a six-month period could be charged as a Federal misdemeanor, carrying a potential one-year sentence and $100,000 fine. 17 U.S.C. Section 506(a)(2); 18 U.S.C. Sections 2319(b)(3), 2319(c)(3), 3571(b)(5).
• Shoplifting
  The legislative history of the Act discusses the compression of music files using the MP3 technology and describes it as a looming threat, so there is no question that the statute was specifically intended to criminalize the use of so-called "file sharing" systems to swap copyrighted music on line. In fact, one member of Congress argued in favor of the NET Act legislation by prophetically warning that "[w]e cannot allow the Internet to become the Home Shoplifting Network."
• Manslaughter
  Case No. A 391 583 (L.A. Superior Court, 1984). Mr. Schleimer was hired as an expert by the defense attorneys for director John Landis and the other defendants in this manslaughter case involving a fatal helicopter accident on the set of the motion picture The Twilight Zone. Mr. Schleimer, who has an MFA in Theater, Film & Television from UCLA, and has written technical articles about cinematography and special effects, designed the cross-examination of the prosecution's expert witnesses and drafted the court's admonition concerning optical distortion of the accident by the motion picture footage projected during the trial. Mr. Schleimer also coined the "Monday Morning Quarterback" theme which was presented by the defense lawyers in closing argument. All of the defendants were acquitted.
• Internet Crimes
  Literally billions of copyright infringements have taken place over the Internet through the so-called file sharing systems. Legal efforts to shut down Napster and its imitators have begun to have an impact, but even as one system is shut down many others spring up, some of them in offshore locations beyond the reach of the U.S Courts. Our legal system does not seem to be up to the task of dealing with this problem over the long run, so it is inevitable that copyright owners will explore more direct, technological methods of striking back at infringers.
• Extortion
  @ of private computer systems; (b) theft of data or software; (c) dissemination of viruses; (d) reckless or malicious alteration or destruction; (e) intrusion into government computers; (f) trafficking in passwords; (g) denial of service attacks; (h) misappropriation of services; and (i) use of computers in fraud, theft or extortion.

Business and Corporate Law

• Corporate Law
  Most of the existing studio audit clauses expressly deny access to "general corporate records." This ill-defined concept can best be analyzed by reference to Generally Accepted Accounting Principles ("GAAP"), which most companies are required to adhere to. "Participation accounting" records usually do not comply with GAAP, whereas (as a general rule) "general corporate records" must be in accordance with GAAP, because of requirements by the SEC, IRS, and (in some cases) bondholder and shareholder agreements. When people speak of the studios keeping "two sets of books," this is not just rhetorical. The distinction between participation accounting records and "general" accounting records (also referred to as "management" records, or "financial reporting" records, or "corporate accounting" records) can be substantial. Accordingly, the most important restriction contained in most standard audit clauses now in use is a restriction denying access to general "corporate" records--irrespective of the relevance of those records in an audit.
• Intellectual Property
  "ZZ Top Sues Chrysler for $15 Million," Austin American-Statesman, March 4, 1999; "ZZ Top Sues Chrysler," The Houston Chronicle, February 28, 1999; "ZZ Top v Chrysler, The Song Remains the Same," Law & Politics, December, 1999; "ZZ Top v. Chrysler Corp.: Overhead Deductible from Infringer's Profits," Intellectual Property Litigation Reporter, February 9, 2000
• Unfair Competition
  "Lugosi could have created during his lifetime through the commercial exploitation of his name, face and/or likeness in connection with the operation of any kind of business or the sale of any kind of product or service a general acceptance and good will for such business, product or service among the public, the effect of which would have been to impress such business, product or service with a secondary meaning, protectable under the law of unfair competition." Id., 25 Cal.3d at 818

Employment Law

• Employment Contract
  ' 1700.44(d). This subsection expressly permits the manager to negotiate employment agreements if done "in conjunction with, and at the request of, a licensed talent agent."