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===Dispute with John Malm=== In 2004, Reznor's former manager [[John Malm Jr.]] filed a suit against Reznor for over $2 million (~${{Format price|{{Inflation|index=US-GDP|value=2000000|start_year=2004}}}} in {{Inflation/year|US-GDP}}) in deferred commissions. The suit alleged that Reznor "reneged on every single contract he and Malm ever entered into" and that Reznor refused to pay Malm money to which he was contractually entitled.<ref name="stabbed">{{cite web | url = http://www.mtv.com/news/articles/1487166/20040521/nine_inch_nails.jhtml | publisher = MTV. [[Viacom (2005–present)|Viacom]] | access-date = 2010-01-07 | first = Jon | last = Wiederhorn | title = Ex-Manager Says Trent Reznor Stabbed Him in the Back 'With A Nine Inch Nail' | date = May 21, 2004 | archive-date = May 10, 2009 | archive-url = https://web.archive.org/web/20090510012108/http://www.mtv.com/news/articles/1487166/20040521/nine_inch_nails.jhtml | url-status = dead }}</ref> Weeks later, Reznor filed a counter-suit in the U.S. District Court of New York, charging Malm with fraud and breach of [[fiduciary]] duties.<ref name="Ex-manager MTV">{{cite web | url = http://www.mtv.com/news/articles/1487134/20040520/nine_inch_nails.jhtml | title = Trent Reznor Sues Ex-Manager For Millions | publisher = MTV. [[Viacom (2005–present)|Viacom]] | access-date = 2010-01-07 | first = Jon | last = Wiederhorn | date = May 20, 2004 | archive-date = May 10, 2009 | archive-url = https://web.archive.org/web/20090510024724/http://www.mtv.com/news/articles/1487134/20040520/nine_inch_nails.jhtml | url-status = dead }}</ref> Reznor's suit arose from a five-year management contract signed in the early days of Nine Inch Nails, between Reznor and Malm's management company J. Artist Management. This contract, according to the suit, was unlawful and immoral in that it secured Malm 20% of Reznor's ''gross'' earnings, rather than his ''net'' earnings, as is the standard practice between artists and their management. The suit also alleged that the contract secured this percentage even if Malm was no longer representing Reznor, and for all Reznor's album [[advance payment|advances]].<ref name="Bares Teeth">{{cite web |url=http://www.mtv.com/news/articles/1502433/20050517/reznor_trent.jhtml |publisher=MTV. [[Viacom (2005–present)|Viacom]] |access-date=2010-01-07 |first=Chris |last=Harris |title=Trent Reznor Bares Teeth in Testimony Against Ex-Manager |date=May 17, 2005 |url-status=dead |archive-url=https://web.archive.org/web/20100201012253/http://www.mtv.com/news/articles/1502433/20050517/reznor_trent.jhtml |archive-date=February 1, 2010 }}</ref> The suit also described how Malm had misappropriated the ownership rights regarding Nine Inch Nails, including the trademark name "NIИ".<ref name="Ohio court appeal">{{cite web |url=http://www.sconet.state.oh.us/rod/docs/pdf/8/2009/2009-ohio-2577.pdf |title=Court of Appeals of Ohio document |access-date=2010-07-09 |archive-date=August 4, 2009 |archive-url=https://web.archive.org/web/20090804030855/https://www.sconet.state.oh.us/rod/docs/pdf/8/2009/2009-ohio-2577.pdf |url-status=live }}</ref> According to testimony by Malm, Reznor gave him half of the "NIИ" trademark "as a gift".<ref name="Ohio court appeal" /> Reznor stated that he began to fully understand his financial situation after tackling his drug addiction.<ref name="Bares Teeth" /> Reznor requested a financial statement from Malm in 2003, only to discover that he had only $400,000 (~${{Format price|{{Inflation|index=US-GDP|value=400000|start_year=2003}}}} in {{Inflation/year|US-GDP}}) in [[liquid assets]]. He told the court, "It was not pleasant discovering you have a tenth as much as you've been told you have."<ref name="Reznor wins MTV">{{cite web | url = http://www.mtv.com/news/articles/1503212/20050531/nine_inch_nails.jhtml | publisher = MTV. [[Viacom (2005–present)|Viacom]] | access-date = 2010-01-07 | first = Chris | last = Harris | title = Nine Inch Nails' Trent Reznor Wins Case Against His Former Partner | date = May 31, 2005 | archive-date = May 10, 2009 | archive-url = https://web.archive.org/web/20090510025819/http://www.mtv.com/news/articles/1503212/20050531/nine_inch_nails.jhtml | url-status = dead }}</ref> Malm's lawyers, however, claimed that Malm had worked for years "pro bono", and that Reznor's inability to release an album or tour and his uninhibited spending were the reasons for Reznor's financial situation.<ref name="Ex-managed Billboard">{{cite magazine | url = http://www.billboard.com/search/?keyword=nine+inch+nails+malm&x=0&y=0#/news/nin-s-reznor-sues-ex-manager-1000516579.story | magazine = [[Billboard (magazine)|Billboard]]. [[Nielsen Company]] | title = NIN's Reznor Sues Ex-Manager | date = May 21, 2004 | access-date = 2010-01-07}}</ref> After a three-week trial in 2005, jurors sided with Reznor, awarding him upwards of $2.95 million and returning to him complete control of his trademarks.<ref name="Reznor wins MTV" /> After adjustment for inflation, Reznor's award rose to nearly $5 million.<ref name="Ohio court appeal"/>
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