Trent Reznor Wins Lawsuit Against Former Manager
Former Nine Inch Nails manager ordered to pay up $2.9 million for allegedly cheating Trent Reznor out of millions.
Trent Reznor of Nine Inch Nails filed the lawsuit in 2004 in New York claiming that former manager John Malm mismanaged the bands finances and actually stole money from them. Apparently Malm had tricked Reznor into signing a contract that assigned the manager 20 percent of Gross earnings.
Anyone familiar with music contracts can readily see the problem. The assignment should have been of NET income, not GROSS earnings. This means that Malm would have received 20 percent of all earnings, before taxes and before more important distributions like his band member payments.
The verdict today also awarded trademarks back into Reznor's hands. On the flip side, Malm's lawyer stated that the former manager never collected on his contracted 20 percent earnings and never kept secrets from Reznor. The lawyer also goes on to say the he worked pro-bono for many years and never asked for money.
In the end, the jury found for Reznor and will be awarded the $2.9 million. Currently on tour in Europe promoting his new album "With Teeth", Reznor might, in fact, be pleased with this result.
· Official Nine Inch Nails