On Friday, February 1, the Federal Trade Commission (FTC) released guidelines for mobile privacy.  The guidelines target key players in the growing mobile device industry, including Apple, and Google, as well as mobile app developers, advertising networks and others.  Guideline recommendations included asking industry leaders to promote best practices and let consumers know immediately what apps will do with their personal information and let those consumers give their permission for that data to be collected and used.    It was also recommended that Privacy Policies set in place by App Developers should be easier to understand and give consumers a clear sense of how their information will be used.  A “do not track” system has also been recommended.

 “The mobile world is expanding and innovating at breathtaking speed, allowing consumers to do things that would have been hard to imagine only a few years ago,” said FTC Chairman Jon Leibowitz.  “These best practices will help to safeguard consumer privacy and build trust in the mobile marketplace, ensuring that the market can continue to thrive.”

 To access the full set of FTC recommendations, click here.

 For more information about our Internet, New Media & Entertainment Practice, please contact Greg Akselrud at (818) 444-4503 or

Greg Akselrud

Q.       I want to run a sweepstakes, why are there so many restrictions?

A.   Sweepstakes and contests offer companies a relatively inexpensive, but effective, way to market their products and services.  However, state laws have been passed to, among other things, prevent companies from operating an illegal lottery (entry into a random drawing for consideration) and to prevent false advertising.  As such, each state has statutes addressing sweepstakes/contests and advertising requirements.

Q.     What is the difference between a sweepstakes and a contest?

A.   A sweepstakes, like a lottery, is a random drawing.  The key difference, however, in operating a sweepstakes (and avoiding the operation of an illegal lottery) is consideration. To properly run a sweepstakes, a company must eliminate consideration from any entry requirement.  As such, a company must provide a free form of entry – at least as an alternative.  A contest is essentially a skill-based game or competition.   The ability to win a contest is not by random drawing, like in a sweepstakes, but is rather based on skill-based judging criteria set forth in advance.

Q.     Do I have to include all the fine print?

A.   An essential part of operating any sweepstakes or contest is to have a proper set of official rules.  These rules are designed to address the many state by state regulations of sweepstakes and contests (and advertising issues).  They also clearly set forth key information – such as, among other things, the fact that no purchase is necessary to enter or win, the method of entry (and collection of personal information), the eligibility requirements, the period of time that the promotion is offered, the manner in which winners are selected, and information about prizes and their value.  Of course, the official rules also address some of the key legal issues – like obtaining rights to use the winner’s name once they win, limitations of liability, and dispute resolution.  Certain states have registration and bonding requirements so it is also important to address whether residents of those states should be eligible (and if so, whether the company is complying with those requirements).  Also, if a promotion is intended to be international, countries regulate sweepstakes and contests differently, which will of course affect what is stated in the official rules.

Greg Akselrud is a founder and partner of the Firm. He chair’s the Firm’s Internet, New Media and Entertainment practice group. Greg advises a wide range of public and private clients across a number of industries, including companies in the entertainment, Internet, technology, and apparel industries. Greg’s practice involves providing advice in connection with general corporate matters (including company formation, stock incentive plans, executive employment agreements, and various commercial and business contracts), venture capital and angel financings, mergers and acquisitions (including public reverse mergers), private equity and debt securities offerings, public offerings, federal and state securities law reporting requirements, intellectual property strategic counseling, Internet and e-commerce matters, and entertainment, content and digital media transactional matters.

Do you have a question for one of our attorneys?  Send your questions to to be featured in future 3 Questions columns.

Stubbs Alderton is featured in the November 12th LA Business Journal story: "Catching the Wave - Service providers flock to Westside to shore up Silicon Beach clients."  The article specifically features SAM PartnersLouis Wharton, Greg Akselrud and Kevin DeBré, as they discuss our launch of a Santa Monica office and commitment to the LA startup scene.  See more here.

Greg Akselrud, Chair of the Internet, New Media & Entertainment Practice Group at Stubbs Alderton & Markiles, LLP discusses the difference between co-marketing and a joint venture, and the benefits and risks involved with each.

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Co-marketing arrangements present a wealth of opportunities to expand your business. They allow business owners to expand distribution and revenue while leveraging another’s strengths, all while providing a better offering to users.  But at a certain point, a longer term initiative presents itself - the joint venture.  Joint ventures offer many advantages to traditional co-marketing arrangements, but also bring significant disadvantages and risks.

What is co-marketing?

Co-marketing takes many forms.  When online, co-marketing can mean two parties marketing each other’s products and services, co-branding a single product or service under a combined brand or using each party’s trademarks, and bundling two pieces of software.  It is usually documented in the form of an agreement between the two parties.

What is a joint venture?

A joint venture is a form of partnership (not necessarily in the legal sense) where two or more parties agree to undertake a business, or to operate a product or service, or in the co-marketing sense, to co-market their respective products and services.  A joint venture can be documented by virtue of an agreement between parties, a more formal formation of a partnership or the formation of a limited liability company or other entity the parties determine to use to undertake the business, or to operate or co-market one or more products or services.  For example, Hulu is a joint venture of NBC, Fox and Disney, and Vevo is a joint venture of Sony Music, Universal Music and Abu Dhabi Media (to create a Hulu for music videos!).

What are some of the key differences?

What are some of the advantages of forming a joint venture vs entering into a co-marketing agreement?

What are some of the disadvantages of forming a joint venture vs. entering into a co-marketing agreement?

Ultimately, while their formation is more complicated than the standard co-marketing arrangement, and requires significant analysis, joint ventures can bring extraordinary value to the individual joint venture partners – particularly in co-marketing-focused arrangements – and are worth exploring.

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 For more information regarding our Internet, New Media & Entertainment Practice Group, please contact Greg Akselrud at gakselrud@stubbsalderton.com or follow him on  Twitter @gregakselrud.

Ryan Seacrest Media (RSM), an investment holding company, and Clear Channel, a leading global media company, together with Clear Channel’s majority investors Thomas H. Lee Partners (THL) and Bain Capital today announced two new investment agreements designed to drive business growth across multiple media platforms.

Funds sponsored by THL and Bain Capital have together committed up to $300 million to working with RSM to identify, acquire and develop innovative media companies, media content and other media properties that can be leveraged to support a range of media enterprises.

Under a separate agreement, Clear Channel will acquire a minority stake in Ryan Seacrest Productions (RSP), a privately-held entertainment production company. RSP produces the hit series “Keeping Up with the Kardashians,” the highest-rated show on the E! network, and the spin-offs “Kourtney and Kim Take New York,” “Khloe and Lamar,” and “Kourtney and Khloe Take Miami.” RSP also produced the Emmy Award-winning ABC reality series “Jamie Oliver’s Food Revolution.” RSP is currently producing two new reality series including “Melissa and Tye: A New Reality,” for CMT and “Shahs of Sunset,” for Bravo.

Creative Artists Agency (CAA), Craig Jacobson at Hansen, Jacobson, Teller, Hoberman, Newman, Warren & Richman, L.L.P. and Greg Akselrud of Stubbs Alderton & Markiles negotiated the transactions on behalf of Ryan Seacrest and Ryan Seacrest Media.

For more information about this transaction visit:

http://www.hollywoodreporter.com/news/ryan-seacrest-clear-channel-acquires-minority-stake-investment-286050

http://www.deadline.com/2012/01/ryan-seacrest-wins-investments-from-clear-channel-and-private-funds/

http://www.nytimes.com/2012/01/31/business/media/ryan-seacrests-company-to-sell-a-stake-to-clear-channel.html?_r=1&scp=3&sq=seacrest&st=cse

To view Greg Akselrud's bio, click here.

The LA Times recently released a story entitled “Silicon Beach: Real or high-tech hype?” discussing the thrilling rise of the tech company market in the Southern California region.  According to venture capitalist Nate Redmond of Rustic Canyon Partners, quoted in the article, “We’ve never seen a level of activity higher than it is today.”  Several SAM clients, including Riot Games, are mentioned as companies that are benefitting from the growing tech market in Southern California.  Also mentioned in the article is SAM client and venture capitalist Mark Suster of GRP Partners, who is actively involved in the Los Angeles venture capital market and believes that the Los Angeles area is “one of the most undiscovered tech hubs in the country.”

Stubbs Alderton and Markiles, LLP is a leading law firm in representing venture-backed companies based in Los Angeles and Santa Monica, the so-called “Silicon Beach”, and provides services to a broad spectrum of tech start-up companies in both the Southern California and San Francisco Bay areas such as Rdio, Inc., SuperGiant Games, ADLY Inc., Mogreet, Inc., Leisurelink, Inc., Illfonic LLC, and The Illusion Factory to name a few.  A core focus of SAM’s practice is serving the needs of emerging growth and technology companies.

SAM also has extensive relationships with “Silicon Beach” area venture capital firms, angel investors and start-up incubators such as GRP Partners, Rustic Canyon Partners, Greycroft Partners, Clearstone Venture Partners, Mission Ventures, FocalPoint Partners, Europlay Capital Advisors, DFJ Frontier, TechCoast Angels, Pasadena Angels, and Ventura Ventures Technology Center.  The Firm is a sponsor of LaunchPad LA and regularly sponsors tech events such as LA Tech Week, the E3 Expo, the Game Developers’ Conference (GDC), the CalTech/MIT Enterprise Forum, Digital Hollywood, LAVA Meet the VCs, and many others. SAM is also actively involved with the “First Wave” accelerator and fund projects of Pepperdine’s Graziadio School of Business and Management.

To view the December 11th Los Angeles Times’ article, click here.

For more information regarding the Venture Capital and Emerging Growth practice of Stubbs Alderton & Markiles, please contact Scott Alderton at or (818) 444-4501.

For more information regarding the Internet, New Media & Entertainment practice, please contact Greg Akselrud at or (818) 444-4504.

 

Stubbs Alderton & Markiles Partners Louis Wharton and Gregory Akselrud assisted Phototron, Inc., a hydroponic mini-greenhouse manufacturer, in negotiating and concluding a private placement round followed by a reverse merger with Catalyst Lighting Group, Inc., a public shell.  Moving forward, Phototron plans to expand its business through a network of independent direct selling distributers, a unique marketing and distribution strategy for its sector.

To view the press release regarding this transaction click here.

To view Greg Akselrud's attorney bio, click here.

To view Louis Wharton's attorney bio, click here.

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