ETHICS: NOT A GAME

TAMERA H. BENNETT, Lewisville Bennett Law Office, PC

COYT RANDAL JOHNSTON, Dallas Johnston ♦ Tobey, P.C.

State Bar of 18TH ANNUAL ENTERTAINMENT LAW INSTITUTE October 2-3, 2008 Austin

CHAPTER 17

Bennett

LAW OFFICE Tamera H. Bennett Attorney at Law Licensed in Texas & Tennessee

132 West Main Street Lewisville, Texas 75057

Tamera H. Bennett 972.436.8141 Attorney at Law metro 972.434.2318 fax 972.436.8712 [email protected] www.tbennettlaw.com

ADMITTED STATE BAR OF TEXAS NOVEMBER 6, 1998 ADMITTED TO PRACTICE IN TENNESSEE APRIL 14, 2006

EDUCATION Texas Wesleyan University School of Law, Fort Worth, Texas Juris Doctor, May 1998 ( Magna Cum Laude )

Middle Tennessee State University, Murfreesboro, Tennessee B. S., Recording Industry Studies, December 1989 ( Cum Laude )

PUBLICATIONS and SPEAKING ENGAGEMENTS (partial listing) • State Bar of Texas Entertainment Law Institute Ethics Presentation (2007). • Dallas Bar Sports & Entertainment Law Music Law Bootcamp (2007). • State Bar of Texas Entertainment Law Institute on Copyright Renewal and Reclamation under the 1909 Copyright Act (2006). • “Google This: Renewal Infringement Copyright,” Article presented at the SBOT Intellectual Property Law Section Annual Meeting (2006). • “Introduction to Intellectual Property,” Denton County (2005). • “GRAMMY in the Schools,” Music Business Panel, Dallas, Texas (2005). • State Bar of Texas Entertainment Law Institute (2004). • “2003 = The New Millennium for Copyright” (published: 2003 and 2004 Legal & Business Aspects of the Film & Music Industries CLE; teaching materials for the UCLA Music Business course; and September 2003 California Copyright Conference Newsletter). • “Is the Deck Stacked Against Texas? State Lacks Statute Governing Contracts With Minor Entertainers,” Texas , February 21, 2000. Co-authored with Jeffrey W. Storie, Esq. • “Risky Business: Rejecting Adherence to Industry Standards In Exclusive Songwriter Agreements,” 4 TEX . W ESLEYAN L. R EV . 71 (1998).

ORGANIZATIONS and ACHIEVEMENTS • Named a “2006 Best Lawyer In Dallas Under 40” in D Magazine. • Entertainment & Sports Law Section, State Bar of Texas; Chair 2005-06; board member 2002-2007; ex-officio board member 2008. • Sports & Entertainment Law Section, Dallas Bar Association; Chair 2003; board member 2000-2005; ex-officio board member 2006-08. • Women Business Owners of Denton County; board member 2004-2006. • Cub Scouts Pack 62 – Tonkawa District; Den Leader 2007-08.

Bennett

LAW OFFICE Tamera H. Bennett Attorney at Law Licensed in Texas & Tennessee

132 West Main Street Lewisville, Texas 75057

972.436.8141 metro 972.434.2318 fax 972.436.8712 [email protected] www.tbennettlaw.com

Bennett Law Office, PC is a boutique trademark, copyright and entertainment law firm located in a historic two-story building in Old Town Lewisville. The firm is a woman-owned business and is certified by The Texas Building & Procurement Commission as a State of Texas Historically Underutilized Business (HUB).

Our clients range from established multi-million dollar a year service businesses to entrepreneurs launching a new product. A common trend in our client base is the need for providing guidance related to the development and licensing of materials to third parties. In addition to trademark application prosecution and licensing agreements, we advise clients on co-branding, product placement, endorsement and sponsorship agreements.

The primary focus of the firm’s entertainment practice is music publishing catalog administration. The firm works extensively with “estate” clients in reclamation of copyrights under the 1909 Copyright Act and licensing of song and master catalogs.

Tamera H. Bennett, nicknamed by her clients as the IP quarterback, works closely with her clients to implement customized brand management programs. Her clients range from rock star to leadership coach and financial guru to custom motorcycle designer.

Prepared with an undergraduate degree in Recording Industry Studies and a law degree from Texas Wesleyan University School of Law, Tamera represents clients throughout Texas and Tennessee in trademark, copyright and entertainment law related matters.

Visit Tamera’s blog at www.createprotect.com for her take on all things copyright, trademark and entertainment law related.

8-08 COYT RANDAL JOHNSTON JOHNSTON ♦ TOBEY, P.C. 3308 OAK GROVE AVENUE DALLAS, TEXAS 75204 (214) 741-6260 Phone (214) 741-6248 Fax Email address: [email protected] Website: www.johnstontobey.com

Born in Wheeler, Texas. Fluent in German, published poet, accomplished water-skier, passionate guitar player, father of eight children (some of whom are temporarily self-sufficient), and founding member of Blue Collar Crime, a Texas blues brotherhood composed of four and a guitar legend (who needs four lawyers). www.bluecollarcrime.com

EDUCATION

The University of Texas School of Law, Juris Doctor with Honors Honors: Chairman, Legal Research Board Clerk, Lt. Governor’s Conference on Ethics in Government Brigham Young University, Bachelor of Arts Degree, Major: English Honors: Track Scholarship (intermediate hurdles) Associate Editor, Wye Magazine (campus literary publication) President, English Circle (Club of English Majors) Pampa High School, Pampa, Texas

LICENSES/CERTIFICATIONS

Licensed by the State Bar of Texas and Federal Courts in Texas ”Civil Trial Law,” Texas Board of Legal Specialization, 1981 - present Texas Board of Legal Specialization, Member 1983-1985 Personal Injury Advisory Commission, Member 1993-2000 Practice limited to litigation, specializing in professional liability.

ACKNOWLEDGMENTS/HONORS

Texas Lawyer - Go-To Guide D Magazine - Best Lawyers in Dallas Texas Monthly - Texas’ Super Lawyers Who’s Who in American Law

PROFESSIONAL ORGANIZATIONS

American Board of Trial Advocates President, Dallas Chapter 2004 Dallas Bar Association Chairperson, Business Litigation Section, 2000 Dallas Bar Foundation Charter Life Fellow Dallas Trial Lawyers Association President, 1999 National Institute of Trial Advocacy, Southern Region Instructor Trial Advocacy College of Texas Instructor Texas Bar Foundation Life Fellow Texas Trial Lawyers Association Member

SPEECHES

Recent Developments in Legal Malpractice, Dallas Bar Association’s Annual Ethics Fest, 2008 Ethics in the Internet, Texas Trial Lawyer’s Association: Personal Injury Seminar, 2008 Avoiding Your Worst Nightmare-Managing to Stay Out of Trouble, Dallas Minority Attorney Program, 2008 Staying out of the Cross-hairs: Avoiding Malpractice Claims, Dallas Bar Association’s Ethics Committee, 2008 Protecting Ourselves: Attorney Liability Issues, State Bar of Texas: Webcast, 2008 Why I Sue Lawyers, Park Cities Club – Expert Witness Association, 2008 Malpractice, Ethics and Fee Disputes, TexasBarCLE: Webcast, 2007 The Three Corner Problem, Ethics Dilemmas in Legal Malpractice, 2007 File Documentation, Retention and Destruction, State Bar of Texas’s Advanced Drafting: Estate Planning and Probate, 2007 Why I Sue Lawyers, Great American Insurance Group’s CLEver! Ethics, 2007 Internet Advertising, Dallas Bar Association’s 16th Annual Bench Bar, 2007 Evaluating and Handling the Legal Malpractice Case, State Bar of Texas’s Consumer and Commercial Law Course, 2007 Malpractice Prevention & Disciplinary Rules, State Bar of Texas’s 30th Annual Advanced Civil Trial Course 2007 The Art of Cross Examination, Dallas Bar Association’s Tort and Insurance Practice Section, 2007 Belt Update - Practical “Belts” and Suspenders Panel Discussion of How to Plan to Defend the “But Daddy Would Have Wanted to Save All Taxes” Claim, Texas Bar’s 31st Annual Estate Planning and Probate Course, 2007 Magical Ethical Mystery Tour, Dallas Bar Association’s Annual Ethics Fest, 2007 Belt Case – TexasBarCLE Webcast, 2007 Malpractice Issues in Probate and Estate Planning, Dallas Bar’s Probate, Trusts & Estates Section, 2007 Malpractice Traps: Advising the Insolvent Client, State Bar of Texas’s 25th Annual Advanced Business Bankruptcy Course, 2007 Legal Malpractice Roundtable, 2006 Ethics Panel, Texas Bar’s 29th Annual Advanced Civil Trial Course, 2006 Professional Liability Lawsuits and Successful Strategies, Dallas Bar Association’s Business Litigation Section, 2006 Law & Ethics Issues for the Estate Planner, The Center of American and International Law’s 44th Annual Program on Wills, Trusts, and Estate Planning, 2006 Belt v. Oppenheimer, Dallas Bar Association’s Probate Study Group, 2006 Legal Malpractice Roundtable, Texas Lawyer’s Roundtable Event, 2006 Ethics Issues for the Practicing Entertainment Lawyer, 15th Annual Entertainment Law Institute Legal and Business Aspects of Music, Motion Pictures, and Digital Entertainment, 2005 Malpractice, Ethical and Fee Disputes, The San Antonio Estate Planners Council’s - Estate Planning, Probate, and Guardianship Seminar, 2005 Malpractice Exposure for Lawyers in Insurance Related Matters, 9th Annual Insurance Law Institute. The University of Texas School of Law, 2004 Ethics Issues in Estate Planning; 43rd Annual Program on Wills, Trusts & Estate Planning. The Center for American and International Law, 2004 The Cost of Being a Gunfighter; Legal Ethics Committee of the Dallas Bar Association, 2004 Current Legal Malpractice Issues, Tort and Insurance Section of the Dallas Bar Association, 2004 Ethical and Malpractice Issues for the Estate Planning and Probate Practitioner, Texas Bar CLE presents the 28th Annual Advanced Estate Planning & Probate Course, 2004 Legal Malpractice in Texas, Insurance Issues. Lorman Education Services Seminar, 2004 Ethics and Malpractice, Collin County Probate Section, 2004 Ethics and Malpractice, Employment Section of the Dallas Bar Association, 2004 Ethics and Malpractice; Probate Section of the Dallas Bar Association, 2003 Mediating Across the Goal Line: Medical and other Professional Malpractice. The Alternative Dispute Resolution Section of the State Bar of Texas, 2003 A Review of Ethics Opinions. 19th Annual Advanced Personal Injury Law Course. State Bar of Texas, 2003 Ethics and Malpractice for the Criminal Practitioner: DWI Seminar. Texas Criminal Defense Lawyers Association, 2003. Ethics and Malpractice Issues. Real Property Section of the Dallas Bar Association, 2003. “Malpractice and Ethics’ Panel Discussion” National Law Review, Litigation Summit and Exposition, 2002. Trial Demonstration: Direct and Cross of Legal Malpractice Expert. State Bar of Texas, 2002. Tactics-Tactics-Tactics. Texas Trial Lawyer’s Association, 2001. Advanced Expert Witness Course II. State Bar of Texas, 2001. Hot Tips for Hot Times: Malpractice and Fee Disputes. Texas Trial Lawyer’s Association, 2000. Prejudgment and Post Judgment Interest: Damages Symposium. Texas Trial Lawyers Association, 1999. Malpractice and Fee Disputes. 15th Annual Advanced Personal Injury Law Course, State Bar of Texas, 1999. Legal Malpractice, Settlement Negotiations, Breach of Fiduciary Duties, and Multiple Clients, 14th Annual Personal Injury Law Course. State Bar of Texas; 1998; 15th Annual Personal Injury Law Course, 1999. Proving Emotional Damages in Employment Cases: The Nuts and Bolts of Plaintiff’s Employment Litigation VI, An Employment Law Seminar for the Plaintiff’s Employment Lawyer. The Dallas-Fort Worth Chapter of the National Employment Lawyers Association, 1998. Personnel Law Update. The Council on Education in Management, 1997. Voir Dire and Opening Statements: Super Store of Continuing Legal Education, State Bar of Texas, 1996. Masters in Trial: Examination of Plaintiff. The Foundation of the American Board of Trial Advocates, Dallas and Fort Worth Chapters, 1996. Medical Devices and Drug Litigation: Advanced Products Liability Course. Texas Trial Lawyers, 1995. Enforcement Panel: Recent Developments. 17th Annual Conference on Securities Regulation and Business Law Problems. The University of Texas School of Law, The Fort Worth Regional Office of the U.S. Securities & Exchange Commission, The Texas State Securities Board, and the State Bar of Texas Section on Business Law, 1995. Masters in Trial : Cross-Examination of Defendant. The Foundation of the American Board of Trial Advocates, Dallas and Fort Worth Chapters, 1995. Winning in Mediation: Nuts and Bolts. Dallas Trial Lawyers Association, 1994. Winning in Opening Statements: Learning from the Masters. Dallas Bar Association, 1993. Litigating with the Drug Companies: Discovery - Getting Down to Basics. Texas Trial Lawyers Association, 1992. Arbitration of Disputes with Broker-Dealers. 13th Annual Conference on Securities Regulation and Business Law Problems. The University of Texas School of Law, The Fort Worth Regional Office of the U.S. Securities and Exchange Commission, The Texas State Securities Board and the State Bar of Texas Section on Business Law, 1991. There’s More to it than Title VII: The Nuts and Bolts of Plaintiff’s Employment Litigation. 8th Annual National Employment Lawyers Association Seminar. This Gun’s for Hire, Even if we’re just Dancing in the Dark. Bank One, In-House Seminar.

ARTICLES

A Lawyer Who Sues Lawyers, The Dallas Morning News, August 19, 2007. Coyt Randal Johnston Leaves Quite A Memorable Impression, The Turtle Creek News, April 4, 2004. Curtail Voir Dire? A Practitioner Responds, Texas Lawyer, February 24, 1997. Death Takes Center Stage, Texas Lawyer, January 19, 1998. In Fierce Defense of Lawyer Bashing, Dallas Business Journal, November 30, 1990. On Being held Accountable for Electric Forks, Inc., The Dallas Chapter, CPA News, April 1991. The Ultimate Trip, Texas Lawyer, January 5, 1998. The Worst Address in Texas, Texas Lawyer, January 12, 1998.

Ethics: Not a Game Chapter 17

1. Attorney Bob is retained by the band No Money to handle a copyright infringement lawsuit for unauthorized sampling. In the middle of the trial, the judge strikes the testimony of the band’s expert witness because Attorney Bob failed to properly disclose the witness. Ten days later the band loses the lawsuit and is ordered to pay $10 million to Neil Diamond. Halfway through the appeal, the band fires Attorney Bob and hires Attorney Dave who completes the appeal. No Money loses on appeal. When do limitations begin to run on the band’s malpractice claims against Attorney Bob for failing to disclose the expert witness?

a. The day Attorney Bob should have disclosed the expert witness;

b. The day the court struck the testimony of the expert witness;

c. The day they fired Attorney Bob;

d. The day the appellate decision is issued upholding the adverse judgment.

2. Attorney Bob drafts an agreement for the band No Money with their publicist. Under the agreement the publicist will receive a percentage of the band’s sale of T-shirts. The T-shirt agreement is separate from any other agreement for the publicist’s services. After one year, the band fires the publicist for inactivity. A year after firing the publicist, one of the band’s T-shirts appears on a character in the movie Juno and T-shirt sales skyrocket. The fired publicist sues the band for payment on the sale of T-shirts and recovers a judgment for $1 million. The band is furious and wants to sue Attorney Bob for not having drafted an agreement that terminated the publicist’s rights to a share of T-shirt sales once the publicist ceased to work for the band. When do limitations on the band’s malpractice claim against Attorney Bob begin to run.

a. The day Bob drafted the agreement;

b. The day the publicist sent a demand letter, demanding a share of the T-shirt proceeds;

c. The day the publicist filed suit against the band for T-shirt proceeds;

d. The day the publicist won the lawsuit against the band for T-shirt proceeds.

3. Attorney Bob has changed insurance companies for his malpractice coverage every year. Which company will owe him a defense and indemnity on the claim by No Money?

a. The company that provided coverage for the year in which Attorney Bob made the mistake;

b. The company that provided coverage in the year that limitations began to run on the claim;

c. The company that provided insurance in the year that the band asserted its claim against Attorney Bob.

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d. The company that provided coverage in the year that Attorney Bob alerted his insurance company of the possibility that he might be sued in the future.

4. Attorney Bob has a $100,000 insurance policy covering the claims made by the band No Money. Attorney Bob encourages a vigorous defense and his lawyers (paid by the insurance company) question all possible witness in their attempt to show that Attorney Bob did not commit malpractice. After two years of battles, Attorney Bob loses the arbitration case and a judgment is entered against him for $60,000. Attorney Bob is disappointed, but comforted by the fact that the loss will be paid by his insurance. To his dismay, however, the insurance company refuses to pay the judgment, claiming they have no obligation to pay it. What happened?

a. The insurance company spent his $100,000 of insurance on attorneys’ fees and expert witnesses and there is no money left to pay the judgment;

b. Attorney Bob had an arbitration clause in his fee contract which required the malpractice claim to be arbitrated and the insurance company denied coverage because they were denied their right to a jury trial;

c. The insurance company learned that Attorney Bob knew about this claim when the policy was issued (even though no claim had been asserted by the band) and failed to disclose this potential claim.

d. All of the above.

5. In addition to suing Attorney Bob, the band No Money files a grievance against Attorney Bob claiming that he knew about his mistake and failed to tell the band that he had made a mistake. Attorney Bob defends by claiming that he had no obligation to tell No Money about his mistake. What is the proper response of the Grievance Committee?

a. Attorney Bob wins because his relationship with the band became adverse once he knew he had made a mistake that could result in him being sued for malpractice.

b. Attorney Bob wins if he can demonstrate that he failed to disclose his mistake because of his reasonable belief that no harm would come to the client as a result of his mistake;

c. Attorney Bob wins if he can demonstrate that he failed to disclose his mistake because of his reasonable belief that he would be able to correct the mistake;

d. Attorney Bob loses because there is an ethical obligation to disclose mistakes to your clients prior to continuing with their representation.

6. At the conclusion of the arbitration, the arbitrator ordered Attorney Bob to repay an amount previously received from the band and finding that Attorney Bob was not entitled to collect unpaid fees. Attorney Bob has refused to abide by the arbitrator’s award. The arbitration decision is final and no legal grounds exist for his failure to comply with the award. Has Attorney Bob committed a grievable offense by his refusal?

2 Ethics: Not a Game Chapter 17

a. Yes, if he refuses to pay to the client unpaid fees that are in his trust account but not if he refuses to repay fees deposited into the operating account;

b. Yes, if the band can demonstrate that Attorney Bob entered into the arbitration agreement with the intent to refuse to accept an award unfavorable to him, but not otherwise;

c. Yes, since his refusal to abide by the outcome of trial or arbitration, with no legal justification is conduct that reflects badly upon the profession and the administration of justice generally;

d. a. and b. but not c.

7. Attorney Bob decides carrying malpractice insurance is not worth it if the carrier isn’t going to pay out on his claim when he gets sued. When Attorney Bob gets sued by another client for legal malpractice he is not covered by any malpractice insurance. If Attorney Bob losses, what assets can the client attach to for payment of the judgment? a. All operating cash of the law firm. b. If the law firm is a general partnership, the personal assets of his law partners. c. Attorney Bob’s rental houses that are not under homestead exemption. d. All of the above.

8. Lawyer Bob has been doing free legal work for the band No Talent for years. Recently, the band made a change in their lineup and added a new lead singer and a new 18 year-old blues guitar player from the Oak Cliff part of Dallas. The band has suddenly attracted a lot of attention and a major label approached the band about signing a multi-million dollar 5 record contract. Before signing the contract, the band asked attorney Bob to review it and advise them on it, which he did. The band is now the hottest new thing, filling stadiums everywhere due to the 18 year-old guitar player with, of course, new management, new agents, and new lawyers. Attorney Bob wants to post on his website his role in advising the band in connection with their record contract. Can he ethically do so? a. Yes, as long as he does not make a false or misleading statement;

b. No, since it would create unjustified expectations about the results he can achieve;

c. Yes, so long as he does not use an actor or a model to portray himself or a client;

d. No, unless he also discloses the net amount of money received by the band and his fees and expenses for the representation;

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9. Attorney Bob wants to disclose on his website that he was selected as lawyer of the year by the organization Elite Entertainment Lawyers of America. May he do so?

a. Yes, so long as Elite Entertainment Lawyers of America is a bone fide organization that admits to membership only on the basis of objective, exacting, publicly available standards;

b. No, because the Elite Entertainment Lawyers of America has not been accredited by the Texas Board of Legal Specialization;

c. Yes, so long as he includes a statement that he is not Board Certified by the Texas Board of Legal Specialization;

d. No, unless he first secures the approval of the Advertising Review Committee of the State Bar which reviews and approves content on websites;

10. As a junior associate at a large firm, Attorney Bob worked hand-in-hand with senior lawyers to win a copyright infringement lawsuit on behalf of the screen play writer Ima Starr. Attorney Bob has now left that firm and is practicing on his own and wants to put on his website the fact that he represented Ima in the lawsuit and received a successful result. May he do so?

a. No, since only the lead lawyer is entitled to advertise the good result and he was not the lead lawyer;

b. Yes, so long as he discloses the names of the other lawyers who also worked on the same case;

c. Yes, if he was the person primarily responsible for the good result, even though he wasn’t the lead lawyer;

d. No, since such a website would create unjustifiable expectations of similar results for other clients;

11. The members of the band GET A LIFE have a one hour legal consult with Attorney Bob. It becomes clear they have no money and possibly no talent. Attorney Bob declines representation of the band. Has Attorney Bob entered into an attorney/client relationship with GET A LIFE?

a. No. b. Yes, but only if they paid for the consultation. c. No, because they did not sign a legal services agreement. d. Yes, because they consulted a lawyer with a view to obtaining professional legal services from that lawyer.

4 Ethics: Not a Game Chapter 17

12. The honeymoon is over between Attorney Bob and NO MONEY. NO MONEY decides to hire Attorney Sally for all of their new projects. Attorney Sally requests all of the legal files from Attorney Bob. There is one problem. NO MONEY still owes Attorney Bob money and he is not giving up those files until he gets paid in full. Can Attorney Bob keep the files until he is paid?

a. Yes. b. Yes, so long Attorney Bob provides written notice to NO MONEY regarding the fee dispute. c. Yes, so long as retaining the file is not detrimental to NO MONEY. d. No.

13. Attorney Bob has an interest in film production and has decided to open his own production company in addition to keeping his day job of practicing law. Attorney Bob tells everyone he is working both jobs. It is not unusual that someone may learn he is a lawyer when working with Attorney Bob’s production company and decide to hire Attorney Bob for legal representation. Has Attorney Bob violated any ethical rules by having this “dual profession?”

a) No, so long as he does no further business with someone who becomes his law client. b) No, so long as he is not soliciting clients via the film production company. c) Yes, simply by telling people he holds both jobs. d) No, so long as any further non-legal business he does with clients is consented to in writing.

14. Attorney Bob takes on a film production company as a client and agrees to be paid on back end proceeds when the film is picked up for distribution. Attorney Bob does not get this agreement in writing, but proceeds to provide legal services over a two year period. The film is picked up, but Attorney Bob does not get paid. How does Attorney Bob enforce the contingent fee agreement that is not in writing?

a. He cannot enforce the agreement b. Providing billing statements reflecting the contingent nature of the case. c. Attorney Bob can be paid a reasonable hourly rate. d. Both A and C.

15. Attorney Bob was contacted by Kris, a local musician who is a member of a rock band. Kris schedules a consultation with Attorney Bob to discuss the band’s business and creative goals. Kris is so impressed with Attorney Bob’s knowledge of the music business he immediately cuts him a $1,000.00 retainer check. Kris decides the band should formalize their business relationship by creating an LLC.

Who is Attorney Bob’s client?: a. Kris b. The Band, which includes Kris c. It depends on who signs the retainer agreement d. A or B.

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16. Can Attorney Bob represent all the members of the Band individually in forming the LLC? a. Yes, if potential conflict of interests are expressed and waived in writing. b. No. c. Yes, if Attorney Bob is serving as an intermediary d. A or C

17. With all of his trials and tribulations behind him, Attorney Bob has become an outstanding film attorney. He decides to secure the domain name www.worldsgreatestfilmlawyer.com. Does Attorney Bob violate the ethical rules by using the domain name in Texas to provide information about his legal services?

a. Yes, because it is a domain name. b. Yes, because it could be construed as advertising special competencies. c. No, so long as there is a picture and bio of Attorney Bob on the website d. No, so long as the content of the website is pre-approved by the advertising review committee.

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