On May 10, 2021, Sam Djahanbani published “Taxing the Terminator” in Los Angeles Lawyer and wasfeatured on the cover of the magazine’s 37th annual Entertainment Law Issue. The article discusses the tax consequences of an artist’s exercise of the copyright termination right.
The following is an excerpt from the article:
As the music touring industry faced an almost overnight collapse with the pandemic entirely shutting down touring in 2020, music streaming revenues surged by more than $1 billion as fans streamed more music while under quarantine. Ultimately, however, global music revenue declined by 25% as a whole. And with musicians losing two-thirds of their income in 2020, music artists may continue to pursue alternative monetization, including in the form of catalogue sales. Meanwhile, as older generations increase music consumption through streaming platforms, the demand for older catalogues has dramatically increased. These factors, among others, may partially contribute to the increase in catalogue sales at massive multiples. It is conceivable that some musicians may exercise their copyright termination rights in order to renegotiate their original deals under current favorable market conditions.
Click here to access the article.
Sam Djahanbani advises companies and individuals on a broad range of partnership, corporate, and individual taxation matters, with a specific focus on the entertainment industry. He has experience structuring optimal tax planning solutions for talent, executives, musicians, and entrepreneurs and drafting various business transaction documents, including operating agreements and employment agreements.