Welcome to the Entertainment Newsletter, containing content related to the people, news and business issues we see in our day-to-day service to the industry.

In this issue:

• Watch for Those Red Flags!
  If you have an investment in an entertainment company, keep in mind that according to the Association of Certified Fraud Examiners, approximately 5 percent of the revenue of a typical company is lost to fraud!
• California Tax Law Changes Provide Big Savings for the Entertainment Industry
  With competition for businesses heating up across state and national borders, California passed legislation in 2013 providing favorable income tax sourcing rules for revenue generated from the performance of services and the licensing of intangible assets.
• Five Things That Keep Independent Television and Motion Picture Production Companies Up At Night
  The complexity of the business and the its volatile nature can make it a challenge to predict the timing of license fees, tax credits and other cash receipts. Additionally, CFOs must manage expectations of profit participants, investors, vendors, consultants and subcontractors.
• GHJ at SXSW
  GHJ’ music practice leader Cedar Boschan spoke at the South by Southwest (SXSW) music conference this March in Austin, Texas. Cedar’s program featured a visual presentation that focused on music royalty trends.
• GHJ Team Talks Service Overseas
  I traveled to Frankfurt to conduct a home video distribution audit at the local large studio branch office. My work consisted of meetings with finance and operations personnel to review the local home video distribution processes and analyzing supporting documentation for sampled transactions.
• Q&A With Lisa A. Alter, Esq.
  Many GHJ entertainment clients – especially music clients – have sophisticated copyright grant termination strategies. A most distinguished expert on this complex topic is New York attorney Lisa A. Alter. In the interview below, Ms. Alter graciously shares with our readers some of her intricate knowledge.