John A. Malm, Jr.

Trent Reznor and John Malm

John A. Malm, Jr. is best known as Trent Reznor's former manager through his wholly owned company, J. Artist Management (JAM), and co-founder of Nothing Records. In spite of the eventual legal tangles between Malm and Reznor, Malm was among Reznor's thanks during his acceptance speech when Nine Inch Nails was inducted into the Rock And Roll Hall Of Fame.

History

Early History

Malm was born in Cleveland, Ohio, where he grew up and attended Denison University, achieving a degree in Mass Media Communications. He worked as a manager for his university radio station during his time at Denison.

Malm began his artist management career after college by managing several local acts, including Lucky Pierre and System 56. He soon became the full-time manager of the local band Exotic Birds, which Reznor was a member of at the time. Reznor left the Exotic Birds in 1987, and Malm informally became his manager, without a contract. JAM helped Reznor secure a recording contract with TVT Records in early 1989. Malm and Reznor signed a formal management agreement on April 20, 1989. [1]

With Nine Inch Nails

After having contract disputes with TVT, Malm and Reznor formed Nothing Records, and jointly released Broken with TVT. This would be their last release with the latter, as they then made an agreement to be released through the major label Interscope. This agreement continued as both Malm and Reznor saw great success throughout the 90's, signing several big acts and personal favorites to Nothing, such as Marilyn Manson, Pop Will Eat Itself, and Prick.

Legal Clash

Over several years leading up to the release of 2005's With Teeth, 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. Reznor alleged that Malm took advantage of his addictions and manipulated him into signing unfair agreements. 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.

On May 27, 2005, after a two-week trial, a jury found JAM and Malm liable for breach of fiduciary duty, fraud, and conversion, 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. [2]

Trent Reznor's Comments

Reznor has made several subtle and direct comments about the situation with Malm.

The Associated Press reported that in court, Reznor said:

"John was the business guy, and I was the guy working for nothing in the studio."

External Links

• MTV Article On The Lawsuit
• Wikipedia Article on John Malm