Do royalty disputes always go to court?
No. Many royalty disputes are resolved through negotiation after the audit report is presented, because the paying party recognizes the discrepancy and agrees to cure it. Others are resolved through contractual mediation or arbitration. Litigation is pursued when the paying party disputes the findings or refuses to pay.
What can I recover in a royalty dispute?
Recovery typically includes the underpaid royalties, interest on the underpayment, and in some cases, the costs of the audit and attorney fees. For intentional underpayment or fraud, punitive damages may also be available.
How far back can I audit?
The lookback period is defined by the audit clause in your contract. Many contracts limit audits to the most recent two or three accounting periods, which makes timely exercise of audit rights essential. Statutes of limitation may also limit the recovery period for breach of contract claims.
What is a royalty audit?
A royalty audit is a formal examination of the paying party’s books and records to verify that royalty payments have been calculated and paid in accordance with the contractual formula. Most entertainment contracts include audit clauses that give the rights holder the right to conduct periodic audits.
How do I know if I am being underpaid?
The most reliable way to determine if you are being underpaid is through a royalty audit conducted by a forensic accountant with entertainment industry experience. Common warning signs include declining payments despite stable or increasing usage of your work, opaque accounting statements, and unexplained deductions.
Does The Rubin Firm represent both sports and entertainment clients?
Yes. Our practice covers the full spectrum of sports and entertainment law, representing professional and amateur athletes, musicians, actors, content creators, agents, managers, teams, and entertainment companies throughout Florida.
When should I hire a sports or entertainment lawyer?
Before you sign any contract, endorsement deal, management agreement, or other legal document. The most expensive legal mistakes in sports and entertainment are the ones made before an attorney was involved.
What is NIL and why does it matter?
NIL stands for Name, Image, and Likeness. Since 2021, college athletes can monetize their NIL through endorsement deals, appearances, social media promotions, and other commercial activities. NIL agreements must comply with state law, school policies, and NCAA rules, making legal guidance essential.
Do I need a lawyer or an agent?
Agents and lawyers serve different functions. An agent identifies opportunities and negotiates commercial terms. A lawyer reviews and drafts legal documents, protects your legal rights, and provides advice on the legal implications of business decisions. Many athletes and entertainers benefit from having both.
What does a sports and entertainment lawyer do?
We negotiate and review contracts, protect intellectual property, advise on NIL compliance, resolve disputes, manage endorsement relationships, and provide career-focused legal strategy for athletes, entertainers, content creators, agents, and industry organizations.
