It was interesting to listen in on a 409A discussion that was geared towards a specific industry. The ABA-CLE Program noted some interested points:
* The sports and talent industry, including attorneys, were indeed late to the game and for the most part started addressing 409A only as the transition period was ending.
* Section 409A is only 4 pages, but the IRS needs over 200 pages of regulations and guidance to explain those 4 pages.
* Copyrights and similar intellectual property rights are "property" and therefore not subject to 409A. Therefore, it is important that documents with artists and other industry providers are drafted with language that discuss "property transfers" rather than as "providing services."
Questions to Professor Sobel