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 Post subject: Harrington I'm Curious
PostPosted: Tue Mar 27, 2012 1:06 pm 
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Mr. Harrington,
I'm curious, if I sign the SC agreement and get certified but still get named in a suit ... do I have to go to NC to defend myself?

Also, if there's any part of the SC we don't agree to, is there any other way to get SC to allow us to media shift the SC discs that we own?

Before anyone else jumps on this bandwagon, please let Harrington answer. I've read all the other opinions . :)

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PostPosted: Tue Mar 27, 2012 1:23 pm 
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Lisah wrote:
Mr. Harrington,
I'm curious, if I sign the SC agreement and get certified but still get named in a suit ... do I have to go to NC to defend myself?


The audit acknowledgement? I don't see a forum selection clause in that document at all. In the unlikely event that you were sued, it would be in your home district.

Lisah wrote:
Also, if there's any part of the SC we don't agree to, is there any other way to get SC to allow us to media shift the SC discs that we own?


No.


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PostPosted: Tue Mar 27, 2012 1:27 pm 
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Hey Lisah,
....You must have watched Eric's Video. I, too, did the same. He also has another video under StazDJ on You Tube from a couple of years ago. He shows his entire collection. I actually spoke to him over the phone a year ago about the many issues of the industry. His sound choice video is an eye-opener!


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PostPosted: Tue Mar 27, 2012 1:30 pm 
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HarringtonLaw wrote:
The audit acknowledgement? I don't see a forum selection clause in that document at all. In the unlikely event that you were sued, it would be in your home district.



See Page 2 #5 Forum Selection and Choice of Laws of the following document.
http://www.soundchoicestore.com/skin1/images/2-14-11%20WATERMARKED%20AS%20SAMPLE%20COVENANT%20NOT%20TO%20SUE.pdf

^Is that not the voluntary audit form?

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PostPosted: Tue Mar 27, 2012 1:32 pm 
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MadMusicOne wrote:
Hey Lisah,
....You must have watched Eric's Video. I, too, did the same. He also has another video under StazDJ on You Tube from a couple of years ago. He shows his entire collection. I actually spoke to him over the phone a year ago about the many issues of the industry. His sound choice video is an eye-opener!



Here's the link, from the "Sound Choice Audit" thread in the discussion forum:

http://www.youtube.com/watch?v=I0e-1R6C ... t_received

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PostPosted: Tue Mar 27, 2012 1:40 pm 
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I did watch the video(s) :) And yes, that's what got me to ask questions. The audit forms are sitting on my bosses desk waiting to be signed.... I'm not particularly concerned by any of it. I plan on staying completely legal, as I've always been. (abet the media shifting that I didn't realize was a no-no.. thought as long as I had the discs I was ok).

I am going to use the audit as a tool against the unfair competition of pirated libraries in my area. But, at the same time, I don't want to open myself up to problems with SC. The being named by accident also doesn't worry me... except if I had to go to NC to defend myself!! :lol: It's a long way from Cali!

Thank you Mr. Harrington for the response. :)

And now I'll sit back and watch the games begin... again

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PostPosted: Tue Mar 27, 2012 1:45 pm 
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I believe this is the section in question:

FORUM SELECTION AND CHOICE OF LAWS. The parties agree to the jurisdiction of the state
and federal courts sitting in Mecklenburg County, North Carolina, over any dispute arising under this
COVENANT or involving YOUR infringement of SOUND CHOICE’s copyrights and/or trademarks,
waiving all objections to personal jurisdiction and venue therein.
The parties further agree that the
substantive laws of the State of North Carolina shall apply to such disputes, without resort to the conflicts
of laws provisions thereof.
The choice of forum and choice of laws provisions hereunder are bargainedfor
terms of this COVENANT.

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Last edited by Smoothedge69 on Tue Mar 27, 2012 1:55 pm, edited 1 time in total.

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PostPosted: Tue Mar 27, 2012 1:53 pm 
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JoeChartreuse wrote:
MadMusicOne wrote:
Hey Lisah,
....You must have watched Eric's Video. I, too, did the same. He also has another video under StazDJ on You Tube from a couple of years ago. He shows his entire collection. I actually spoke to him over the phone a year ago about the many issues of the industry. His sound choice video is an eye-opener!



Here's the link, from the "Sound Choice Audit" thread in the discussion forum:

http://www.youtube.com/watch?v=I0e-1R6C ... t_received


I hadn't seen that but it appears the version he shows online is newer than the one I linked to, but still included the Forum Selection.

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PostPosted: Tue Mar 27, 2012 2:10 pm 
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HarringtonLaw wrote:
Lisah wrote:
Mr. Harrington,
I'm curious, if I sign the SC agreement and get certified but still get named in a suit ... do I have to go to NC to defend myself?


The audit acknowledgement? I don't see a forum selection clause in that document at all. In the unlikely event that you were sued, it would be in your home district.

Lisah wrote:
Also, if there's any part of the SC we don't agree to, is there any other way to get SC to allow us to media shift the SC discs that we own?


No.

It's not part of the audit agreement. It's part of the covenant not to sue.

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PostPosted: Tue Mar 27, 2012 2:37 pm 
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Smoothedge69 wrote:
It's not part of the audit agreement. It's part of the covenant not to sue.


The first part of this is correct. I'm checking on the second part of it. My understanding was that the forum selection clause had been removed from the "successful audit" CNS. It was definitely part of the original CNS, but those documents get revised periodically, and I thought we had removed it. I will get a definitive answer and get back to you.


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PostPosted: Tue Mar 27, 2012 2:41 pm 
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HarringtonLaw wrote:
Smoothedge69 wrote:
It's not part of the audit agreement. It's part of the covenant not to sue.


The first part of this is correct. I'm checking on the second part of it. My understanding was that the forum selection clause had been removed from the "successful audit" CNS. It was definitely part of the original CNS, but those documents get revised periodically, and I thought we had removed it. I will get a definitive answer and get back to you.


Documents being revised periodically was the very reason why I had requested in another thread that they post this type of information on their website.


The version I posted appears to be from 02/14/2011. The one in the video appears to be revised 05/04/2011. If there is a newer version can you provide a link?

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PostPosted: Tue Mar 27, 2012 2:47 pm 
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Ok Jim, having read the Media Shifting Agreement for the first time I see some valid points these guys are having. Sorry Chip and Joe...
1) The main one is who would want to sign an agreement changing the venue to NC if theres a breach of contract, unless you live in NC...
2) Another is the extent in which you want to see financials. I can understand you wanting to see if they have bought a bootleg HD or CD's, but really is someone going to be dumb enought to keep that purchase on the books? So other than wanting to see reciepts for SC materials, why would you need to see anything else...
3) Marking a wrapped vintage CD. This should be respected and some form of exterior marking should be used.

Jim remember 99% of the guys coming forward for a voluntary audit are the good guys. You really should talk to the boss on some changes that will treat them more as good guys...

I have the Gem plus 900 songs being shipped to us now. Chris E. said we'd need an audit to be certified. Well theres no way were signing it with the change of venue included. The financials don't bother us and we don't have vintage CD's...

I may have more points later when I have more time to review...

Jon


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PostPosted: Tue Mar 27, 2012 2:54 pm 
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Here is the link to the thread that started this discussion. This gentleman posted his video today and if you look closelt, the e-mails he talks about are from this month. He goes into the CNS and the audit agreement, and it would seem that they are both recent documents.
Here's the link:

viewtopic.php?f=1&t=23467

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PostPosted: Tue Mar 27, 2012 3:01 pm 
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Anyone using an illegal hard drive is most likely going to be under the table as well as far as money is concerned, many bars pay cash without any kind of reciepts or paper trail, so if the purpose of financial disclosure is to see what a company is making off of an illegal setup, chances are you aren't going to see any of that anyway or have any proof other than seeing them working a club, and even then, if there is no records of what they are making, there is no actual proof they are making anything. Many of those kj's I doubt report any of those earnings to the IRS either.

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PostPosted: Tue Mar 27, 2012 3:08 pm 
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Lonman wrote:
Anyone using an illegal hard drive is most likely going to be under the table as well as far as money is concerned, many bars pay cash without any kind of reciepts or paper trail, so if the purpose of financial disclosure is to see what a company is making off of an illegal setup, chances are you aren't going to see any of that anyway or have any proof other than seeing them working a club, and even then, if there is no records of what they are making, there is no actual proof they are making anything. Many of those kj's I doubt report any of those earnings to the IRS either.

I'm sure there are plenty of LEGAL KJs that are paid under the table.

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PostPosted: Tue Mar 27, 2012 3:19 pm 
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Smoothedge69 wrote:
Lonman wrote:
Anyone using an illegal hard drive is most likely going to be under the table as well as far as money is concerned, many bars pay cash without any kind of reciepts or paper trail, so if the purpose of financial disclosure is to see what a company is making off of an illegal setup, chances are you aren't going to see any of that anyway or have any proof other than seeing them working a club, and even then, if there is no records of what they are making, there is no actual proof they are making anything. Many of those kj's I doubt report any of those earnings to the IRS either.

I'm sure there are plenty of LEGAL KJs that are paid under the table.
But a legal kj will most likely be legal all the way up the board & report their earnings.

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PostPosted: Tue Mar 27, 2012 3:24 pm 
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Lonman wrote:
Smoothedge69 wrote:
Lonman wrote:
Anyone using an illegal hard drive is most likely going to be under the table as well as far as money is concerned, many bars pay cash without any kind of reciepts or paper trail, so if the purpose of financial disclosure is to see what a company is making off of an illegal setup, chances are you aren't going to see any of that anyway or have any proof other than seeing them working a club, and even then, if there is no records of what they are making, there is no actual proof they are making anything. Many of those kj's I doubt report any of those earnings to the IRS either.

I'm sure there are plenty of LEGAL KJs that are paid under the table.
But a legal kj will most likely be legal all the way up the board & report their earnings.

If they want to lose 39% of what they earn. I'm not saying that it's right, but I am sure there are many that are KJs on the side that don't report their income, if paid in cash.

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PostPosted: Tue Mar 27, 2012 3:29 pm 
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I'm sure your right Bobby, but our point is that there is no need to look any further than receipts for sound choice materials... We filled three 1099's with the IRS for 2011, and why would you need to see those Jim?

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PostPosted: Tue Mar 27, 2012 3:38 pm 
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I think that if the KJ isn't a BUSINESS, then they probably aren't reporting earnings. And it's these people, that don't have the overhead of running a legitimate business, that frequently are the ones undercutting and getting their music illegally. These are the ones that are costing the industry dearly.
I can't even list all the costs that we have coming out of what we make at every gig. That is what makes it so we can't compete price-wise. Gosh, once we pay an employee, taxes, insurance & the cost of monthly updates of music.. we're lucky to get $40 from one $200 gig. Three gigs per week X's 4 weeks/month... is $480 per month..subtract vehicle & equipment upkeep, gas, unemployment insurance, SSI.. yada yada. Um... wonder why we get upset over the under-the-table guy charging $100. If it weren't for the other aspects of our business, we'd be out of business. Karaoke is barely paying for itself.

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PostPosted: Tue Mar 27, 2012 3:48 pm 
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Lisah wrote:
I think that if the KJ isn't a BUSINESS, then they probably aren't reporting earnings. And it's these people, that don't have the overhead of running a legitimate business, that frequently are the ones undercutting and getting their music illegally. These are the ones that are costing the industry dearly.
I can't even list all the costs that we have coming out of what we make at every gig. That is what makes it so we can't compete price-wise. Gosh, once we pay an employee, taxes, insurance & the cost of monthly updates of music.. we're lucky to get $40 from one $200 gig. Three gigs per week X's 4 weeks/month... is $480 per month..subtract vehicle & equipment upkeep, gas, unemployment insurance, SSI.. yada yada. Um... wonder why we get upset over the under-the-table guy charging $100. If it weren't for the other aspects of our business, we'd be out of business. Karaoke is barely paying for itself.

Lisah, not everyone is a big company. I plan on working for myself, with my own equipment, with no employees to worry about. I CAN afford to charge less because of that, and STILL be legal. You are assuming that everyone that isn't an entertainment COMPANY is illegal. You know what I mean?? I guess I would just be a freelance KJ.

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