Massachusetts  |  Entertainment Law

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6/25/08, 10:53 pm

Legal Question


Royalties

I, as well as four others, had participated in a commercial on the behalf of a company. On completion of the commercial, they had asked for 33% of what we had earned as a ''Finder's Fee''. Because we had felt obligated to pay considering they did ask us to participate in the commercial we agreed and had paid.

Now we are receiving royalties on the commercial, and the company, again, is asking for the 33%. We refuse, as they had only stated clearly in writing it was 33% of an agreed upon amount, and the amount on the royalties is much greater than the original amount. Further talks have resulted in threats of litigation, and claims that they are rightfully owed 100% of the royalties we receive and we are entitled to none. They also claim that the reason why we are receiving royalty cheques and not the company is because of an accounting error. This was only brought up after we had refused to pay 33%.

To summarize, are we legally in the wrong for not paying 33%? As well are we not supposed to be receiving these cheques, and could any amounts received in the past be returned to the company if we are in the wrong?


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