John Malm, Jr.
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[edit] Early career and collaboration with Trent Reznor
John Malm, Jr. is the former manager of Trent Reznor and his band Nine Inch Nails (NIN). He was also a co-founder, along with Reznor, of Nothing Records. Malm grew up in Cleveland and completed a degree at Denison University in Mass Media Communications, with a minor in film. During this time he managed his university radio station. He knew at an early age that he wanted to work in the music industry. He was inspired to aim towards artist management after meeting Todd Rundgren's manager, Eric Gardner, to organise an interview for his radio station. After graduation he worked for his father's business while managing local acts Lucky Pierre and System 56. He left the family business to manage the band Exotic Birds full-time, of which Reznor was a member. He quit in 1987 due to differences in artistic direction, and Reznor also quit them shortly afterward. He took on Reznor as his client after hearing some of Reznor's demo work that the latter had recorded independently at Right Track Studios.
[edit] Managing Nine Inch Nails' early successes and development
Malm signed Reznor/NIN to TVT Records and released the first album Pretty Hate Machine in 1989. The album was a great commercial success, but due to creative interference from the label, Malm and Reznor decided to terminate the record deal. While extricating themselves from the TVT contract, Reznor secretly recorded the next NIN EP Broken (1992) to release on their new label Nothing Records. Under the arrangements they negotiated while still under contract to TVT, Nothing Records would completely produce and control all NIN material, merchandise and marketing material, then release it through their major partner Interscope Records. The deal ensured that Reznor owned Nothing Records and had a remarkable total artistic control over his material. Nothing Records went on to release many NIN releases and later became a stand-alone record company, signing and developing its own artists, including Marilyn Manson and Prick while also offering label support to previously established bands with whom Trent had formed relationships and respected as a fan himself, such as Pop Will Eat Itself and Meat Beat Manifesto.
[edit] Lawsuit vs. counter-lawsuit
After the release of the fourth studio album from Nine Inch Nails, The Fragile (1999), Reznor's drug usage increased, and Malm launched a civil suit for $2 million worth of unpaid commissions throughout Reznor's career. Countering this, Reznor filed a $10 million suit against Malm for gross financial malfeasance[1]. Reznor claimed that Malm had tricked him into agreeing to pay him 20% of his gross earnings, rather than the net earnings as is industry practice[2]. He claimed that over his recording career he had often been highly influenced by drugs, and that Malm had used this to his advantage to get Reznor's signature on various financial documents. The counter-suit further alleged that their contract permitted Malm to continue to indefinitely collect commissions. Malm's attorney Alan Hirth alleged that Malm had worked without pay for Reznor for many of the early years, and "kept nothing from Reznor."[3]
In 2005 a New York court ordered Malm to repay $2.95 million in lost earnings and damages to Reznor[2].
