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. 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 advances. The suit also described how Malm had misappropriated the ownership rights regarding Nine Inch Nails, including the trademark name "NIИ". According to testimony by Malm, Reznor gave him half of the "NIИ" trademark "as a gift."