A simple concept: startup culture in cities around the world gathers around a bar to have a pint and discuss what they are working on, what they need help with and what they can do for each other.

– startupdrinks.com

This low key, unstructured event takes place in cities around the world to give startup junkies a time and place to talk shop.  Ann Arbor started a chapter earlier this year.  The next Ann Arbor event is this Thursday, May 21st at Ashley’s on State Street.  You can RSVP through Facebook Event and there’s also a Facebook Group.

–Matt

Ann Arbor New Tech is a group of people from various industries and backgrounds (e.g., entrepreneurs, technologists, investors, lawyers, marketers, students, etc.) interested in fostering local technology startups by organizing events, sharing resources, and building a supportive community.

Ann Arbor New Tech’s signature event takes place on the third Tuesday of each month, at 6 p.m., at Chesebrough Auditorium at UM’s Chrysler Center.  The monthly event features three to five companies who are each given five minutes to demo and five minutes to answer questions.  Open announcements and networking follows.

This month’s meetup (on May 19^th) features John Barrie from Appropriate Technology Collaborative, Jim Deakins from Lyfe, Drew Leahy and Bobby Matson from MyBandStock, and Tim Stephens from Speedraft.

Following its regular program, this month’s meetup features a special visit by Rick Snyder (CEO of venture capital firm Ardesta and former COO of Gateway Computer) who will hold court for a tech-style town hall meeting.  Snyder, a moderate Republican, announced in March that he’s forming an exploratory committee to decide whether he should launch a campaign in Michigan’s 2010 gubernatorial race.

I will be attending the event and look forward to hearing Snyder’s ideas on building an entrepreneurial technology economy in Michigan.

–Matt

The Federal Trade Commission (FTC), according to its website, is “the nation’s consumer protection agency” and “works for the consumer to prevent fraud, deception, and unfair business practices in the marketplace.”  To that end, the FTC publishes a number of resource guides to help businesses comply with federal law and FTC regulations.  One such guide is the Guide Concerning the Use of Endorsements and Testimonials which attempts to draw a line between “endorsements” (which must always reflect the honest opinion of the endorser) and pure “advertisements” or other non-endorsements (which do not have to comply with endorsement guidelines).  The Endorsement Guide provides examples of what does and does not constitute “endorsements” by consumers, experts, and organizations, and addresses when and how to disclose any material connection between the endorser and the marketer of the product.

For example, a television ad for Nike golf clubs showing Tiger Woods using the clubs would be an “endorsement” by Tiger, even though he makes no verbal statement in the advertisement.  In order for this to be an honest endorsement, Tiger must be an actual user of the irons at the time the commercial airs.  However, even though Nike’s compensation to Tiger is substantial, neither the fact that Tiger is paid nor the amount that he’s paid need be revealed – since this is already assumed by consumers who can judge for themselves the credibility of the endorsement without the need for disclosures.

Recently, the FTC has sought to update the Endorsement Guide, which was last updated in 1980, and extend it to viral marketers, bloggers, and personalities on social-media sites like Facebook and Twitter.  The new rules would essentially hold these “new media” outlets to the same standards, and the same liability for false statements, as traditional media outlets.  The new Guide would cover such things as paid blog reviews, blog reviews where a product has been provided to the blogger for free (the receipt of which would have to be disclosed), advertisers interacting on message boards (who would have to disclose their relationship to the product manufacturer), and so-called “street teams” (who would also have to disclose their relationship to the advertising agency).

–Matt

Michigan’s economy, particularly its “new” economy, is in dire need of investment dollars.  The good news is that representatives from 60 venture capital firms, private equity firms, and banks are coming to Michigan next week to attend the 30th Michigan Growth Capital Symposium.  Thirty-two companies in the life sciences, energy and information technology industries will be presenting, including sixteen Michigan companies.  The MGCS09 is taking place on Tuesday and Wednesday at the Ypsilanti Marriott hotel.

–Matt

With the emergence of Michigan’s burgeoning film industry comes a new wave of so-called talent agents and managers in the state.  In the entertainment industry, the role of a “talent agent” (or “agent”) is to get his artist-client work, like a personnel agency.  The role of a “manager” (or “personal manager” or “business manager”) is restricted to only giving business and career advice.  The reason for this distinction is that, in California and New York, agents must be licensed and are heavily regulated, whereas managers need not be licensed and are largely unregulated.  Persons acting as legitimate managers in these states, in order to avoid licensing and regulation, are very careful not to procure employment for their clients, even if such procurement were merely incidental to their overall management services.  Managers acting as unlicensed agents in California and New York risk having their contracts voided and, thus, losing all their commissions.

The California and New York regulatory scheme for agents and managers is so well-known in the industry that many Michigan “managers” may be under the belief that they too can avoid state licensing laws by limiting their activities to business and career advice.  They would be wrong.  Michigan’s Occupational Code, MCL 339.101 et seq., recognizes two types of “personnel agencies”.  Type “A” agencies, which are employment agencies that place clients in direct contact with employers (i.e., agents), and Type “B” agencies, which are more in the nature of consulting agencies and assist clients in making basic career decisions (i.e., managers).  Both types require a license in Michigan.  A person operating a Type “A” or Type “B” personnel agency in the state, without first obtaining the appropriate license, is bared from bringing an action in court to collect compensation for their services.

In Hudson v. Mathers, 2009 WL 735857 (Mich. App.), the plaintiff learned the hard way.  The unlicensed plaintiff, Hudson, and one of the defendants, Moore, entered into a management agreement, whereby the plaintiff was to provide Moore with “advice, counsel and guidance” in the development of his career as an artist in the entertainment industry, in exchange for a fee for those services.  Thus, the plaintiff qualified as a Type “B” personnel agency, as defined by the Occupation Code, and was required to be licensed.  No license.  No lawsuit.  No fees.

The Court of Appeals rejected the plaintiff’s reliance on a provision of the management agreement that required the application of Georgia law to the contract, as Georgia had no relationship to the parties and the provision was a transparent attempt to avoid Michigan law.  The Court further rejected the plaintiff’s equitable claims, such as unjust enrichment, because to do so would defeat the statutory ban against lawsuits to recover fees by unlicensed personnel agencies.

The bottom line to Michigan talent agents and managers: make sure you’re licensed.

–Matt