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→Legal Clash
===Legal Clash===
In September 2003, Reznor, suspecting that Malm had "run [his] finances into the ground," hired an outside business management firm for the first time. Upon confirming accounting and contractual irregularities, Reznor fired Malm in December 2003. On April 21, 2004, Malm sued Reznor for unpaid commissions throughout his career, totaling $2.2 million. The newly sober Reznor counter sued Malm for breach of fiduciary duty and fraud on May 19, 2004. Reznor alleged that Malm took advantage of his addictions and manipulated him into signing unfair agreements, including joint ownership of property and businesses that Reznor never intended, such as the NIN trademarks. During this time, Reznor signed an agreement which entitled Malm to 20% of his gross earnings for an indefinite time, even if Reznor chose to seek new management.[https://casetext.com/case/reznor-v-j-artist-management]
On May 27, 2005, after a two-week trial, a jury found JAM and Malm liable for breach of fiduciary duty, fraud, conversion, and breach of contract, and awarded Reznor damages in the amount of $2.93 million, plus an additional $1.69 million in interest, as calculated by the court. The court also ordered that all jointly held trademarks related to Nine Inch Nails and [[Tapeworm]] be transferred to Reznor's sole ownership and rescinded the 1989 Management Agreement with respect to all unfulfilled obligations, including any potential future commissions owed. [https://uspto.report/TM/assignment-tm-3121-0129.pdf]