Judge shifts expenses from Jackson executors

LOS ANGELES (AP) — The executors of Michael Jackson's estate will no longer have to pay some legal expenses and other costs out of their own pockets after a judge approved changes Monday to the estate that has earned hundreds of millions of dollars since the pop star's death.

The changes approved by Superior Court Judge Mitchell Beckloff mean attorney John Branca and music executive John McClain will no longer pay the costs from their share of the estate.

The men had been paying fees for entertainment legal counsel provided by members of Branca's firm, and McClain had been incurring expenses for the use of a recording studio founded by Marvin Gaye.

Those expenses significantly diminished their 10 percent share of Jackson's post-death earnings.

Branca and McClain have been collecting closer to 7 percent of the estate earnings since it became a "massive entertainment business enterprise," court filings state.

Estate attorneys sought the change, saying the executors spend more time than they anticipated on Jackson's affairs. The men have overseen numerous Jackson-themed projects, including the licensing of music, video games and a touring Cirque du Soleil show that will eventually become a Las Vegas fixture.

The men agreed in February 2010 to accept 10 percent of the gross entertainment-related earnings of the estate, minus money generated by Jackson's 50 percent interest in the Sony-ATV music catalog and earnings from "This Is It," a film compiled from the singer's final rehearsals.

The exclusions are huge revenue generators for the estate — the Sony-ATV catalog includes publishing rights to music by The Beatles, Elvis Presley, Bob Dylan and other stars. The executors also have been excluded an interest in Jackson's music, which has sold briskly since his death on June 25, 2009, at age 50.

Since then, the estate has earned more than $310 million.

The percentage covers Branca's work on the estate and McClain's producing services.

Under the deal approved Monday, Branca's firm Ziffren Brittenham LLP will now receive 3 percent of entertainment-related income generated by Jackson's estate in 2011 and future years.

Estate attorney Howard Weitzman said the firm was performing work that would cost more than $2 million a year if it was being handled by another firm, and court filings state that a traditional entertainment estate would include additional managers and attorneys who would receive up to 30 percent of the estate's overall revenue.

There was no estimate for how much McClain's billings might be. He bought and restored Gaye's former Los Angeles studio in 1997, christening it Marvin's Room, and Jackson and other top singers have recorded music there.

The estate benefits Jackson's mother, Katherine, and the singer's three children, Prince, Paris and Blanket, who received an initial $30 million payment earlier this year.

Attorneys for Katherine Jackson and the children had no objection to the changes approved by Beckloff. Meg Lodise, who represents the children's interest, said, "It is quite clear that what they're proposing is going to be fair to the estate."

Weitzman told Beckloff that the estate has recently resolved creditors' claims worth at least $11 million and is working to resolve any other valid outstanding debts. Jackson died with an estimated $400 million in debts, but renewed interest in his music and career have fattened the estate's accounts, which listed $90 million in cash on hand according to a September court filing.

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Follow Anthony McCartney at http://twitter.com/mccartneyAP

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U.S. judge rejects Apple bid to halt Galaxy sales

(Reuters) - Apple failed to convince a U.S. judge to block Samsung Electronics from selling some Galaxy smartphones and tablets in the U.S. market, depriving the iPhone and iPad maker of crucial leverage in a global patent battle between the two companies.

In a ruling released late on Friday, U.S. District Judge Lucy Koh in San Jose, California denied Apple's request for a preliminary injunction against Samsung.

The two companies are engaged in a bruising legal battle that includes more than 20 cases in 10 countries as the they jostle for the top spot in the smartphone and tablet markets.

Earlier on Friday, an Australian court extended a halt on sales of Samsung's latest Galaxy tablet in the country by at least a week, as Apple appeals a ruling that had ended the ban.

Apple sued Samsung in the United States in April, saying the South Korean company's Galaxy line of mobile phones and tablets "slavishly" copies the iPhone and iPad.

But on Friday Koh rejected Apple's bid to ban sales of three smartphone models, as well as the Samsung Tab 10.1.

"It is not clear that an injunction on Samsung's accused devices would prevent Apple from being irreparably harmed," Koh wrote.

Apple spokeswoman Kristin Huguet on Friday referred to previous Apple statements about the case, saying that Samsung's "blatant copying is wrong." Samsung representatives did not immediately respond to a request for comment.

Apple could still prevail in the overall lawsuit. But it's inability to win a quick halt to Galaxy sales in the United States comes as the stakes skyrocket in one of the fastest growing consumer electronics markets.

UNDER PRESSURE

Global tablet sales are expected to explode to more than 50 million in 2011. Apple, which has sold more than 30 million iPads so far, is expected to continue to dominate the market in the near term.

Apple's new CEO Tim Cook is under pressure to show he can fill the large shoes of his predecessor, late Silicon Valley titan Steve Jobs. But in his first quarterly result unveiled as permanent CEO, Apple stunned Wall Street, missing expectations for the first time in years.

Analysts said customers held off buying iPhones in the September quarter, waiting for the October launch of the latest iPhone 4S.

But tablets proved a bright spot. The company moved 11.12 million units during the quarter despite attempts by various manufacturers, including Samsung, to capture a slice of the tablet market.

Now Amazon.com has also entered the fray with its Kindle Fire tablet, but Samsung's Galaxy line-up is widely deemed the closest rival in terms of capability and design to the iPad.

Acknowledging the competition, Cook said it was "reasonable to say" none of Apple's rivals have gained any traction, and he expected the tablet market to be bigger than personal computer in the long term.

In her ruling, Koh wrote that for some of the smartphones, "Apple has established a likelihood of success on the merits at trial."

Koh added that Apple would likely prove Samsung infringed one of its tablet patents. However, Apple had not shown that it was likely to overcome Samsung's challenges to the patent's validity, Koh wrote.

Apple must demonstrate both infringement and validity to succeed in its lawsuit.

The case in U.S. District Court, Northern District of California is Apple Inc v. Samsung Electronics Co Ltd et al, 11-1846.

(Reporting by Dan Levine; Editing by Yoko Nishikawa)

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