The Pitch - April 2022

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The Pitch newsletter is a monthly update of legal issues and news affecting or related to the music, film and television, fine arts, media, professional athletics, eSports, and gaming industries. The Pitch features a diverse cross-section of published articles, compelling news and stories, and original content curated and/or created by Arnall Golden Gregory LLP’s Entertainment & Sports industry team.

“Art enables us to find ourselves and lose ourselves at the same time.” – Thomas Merton

AGG News

Jam Brands: Why Bands Should File for Federal Trademark Registration
Consumers do not associate the names Phish, Grateful Dead, and Moon Taxi with an animal, a scary movie, and a spaceship. Instead, these names likely recall the bands’ popular songs, albums, and memorable concerts. In fact, each of these bands recognized the goodwill associated with their names and legally protected that goodwill by filing for federal trademark registration with the United States Patent and Trademark Office (“USPTO”). Considering artists’ amplified use of digital platforms and streaming services to access fans and distribute music and merchandise, filing for federal trademark registration has become even more imperative.
(Source: Arnall Golden Gregory LLP, April 13, 2022) Read More >

Industry News

Music Merchandise Is Big Business. But for Touring Artists, It's Callously Inequitable
While many UK venues are deemed bad, their 25% is nowhere near as bad as the 35% charged by some venues in the US. Over a third of the sale price going on a commission to the venue for them basically allowing the act to have a trestle table at the back? The more you run those numbers, the harder, both morally and economically, they are to stand up.
(Source: Music Business Worldwide, April 7, 2022) Read More >

Walking Dead Creator Robert Kirkman's Profit Lawsuit Against AMC Suffers Latest Blow
The Walking Dead profits lawsuit has suffered what an attorney called a "decisive blow" against claims AMC Networks cheated producers out of profits from the blockbuster zombie drama. In 2017, comic book creator and series executive producer Robert Kirkman filed suit against AMC claiming breach of contract with EP Gale Ann Hurd, EP David Alpert, and former showrunner and EP Glen Mazzara, alleging AMC failed to honor its contractual obligations to the creative team. The complaint accused AMC Studios and AMC Network of "skimming" and self-dealing to misrepresent profits, thereby cheating the producers of their fair share.
(Source: ComicBook.com, April 6, 2022) Read More >

Ed Sheeran Wins a Copyright Battle Over 'Shape of You'
During the 11-day trial, Sheeran denied allegations that he "borrows" ideas from unknown songwriters without acknowledgement and said he has always been fair in crediting people who contribute to his albums. In Wednesday's ruling, High Court Judge Antony Zacaroli concluded that Sheeran "neither deliberately nor subconsciously" copied a phrase from "Oh Why″ when writing his smash hit.
(Source: NPR, April 6, 2022) Read More >

Bob Dylan Defeats ‘Hurricane’ Co-Writer’s Lawsuit Over $300 Million Catalog Sale
A New York appeals court has rejected the lawsuit including Bob Dylan that claimed the singer-songwriter was in debt to the estate of one-time collaborator, Jacques Levy, for a portion of his Universal catalog sale.
(Source: Variety, April 6, 2022) Read More >

The Photographer With 60,000 Undeveloped Images of Rock History ‘Waiting to Come Back to Life'
Charles Daniels took intimate pictures of his friends the Rolling Stones, Hendrix and others – but few have seen the light of day until now.
(Source: The Guardian, April 5, 2022) Read More >

'Billions' Actor Does Not Have to Continue Paying 15% Commission to Former Talent Manager, Manhattan Judge Rules
Talent management company Roth and Associates East’s “proposed reading” of a contract it had had with actor Daniel K. Isaac “is at odds with the parties’ reasonable expectations insofar as it would unfairly subject the defendant [Isaac] to duplicative payment obligations towards both his former and current manager," wrote Manhattan Supreme Court Justice Nancy Bannon.
(Source: LAW.COM, April 4, 2022) Read More >

The Music Catalog Boom May Be Coming to an End
Bob Dylan, Bruce Springsteen and Stevie Nicks have all cashed in on the streaming boom. But the market may have hit a ceiling due to inflation and rising interest rates.
(Source: Bloomberg, April 3, 2022) Read More >

Brian Wilson’s Ex-Wife Sues for Millions After the Recent Sale of His Catalog
Wilson’s ex-wife, Marilyn Wilson-Rutherford, wants her share of royalties from songs he recently sold to Universal Music Publishing Group last year. That deal is valued at more than $50 million, according to court documents, reports Digital Music News. According to their 1981 divorce settlement, which was included in the lawsuit, Marilyn owns half the rights to 170 songs that Brian wrote during their marriage. And the $6.7 million she is requesting has to do with his “reversion rights.”
(Source: American Songwriter, April 2, 2022) Read More >

Keeping Track of Legal Claims from Fatal Shooting on 'Rust' Film Set
Actor Alec Baldwin has detailed his account of the October 2021 fatal shooting of cinematographer Halyna Hutchins on the Rust film production set in an arbitration demand in which he seeks indemnification.
(Source: LAW.COM, April 1, 2022) Read More >

Universal Music Group Joins Sony Music and Warner Music in Waiving Unrecouped Balances For Legacy Artists
Early last month, Warner Music Group (WMG) joined Sony Music Entertainment (SME) in waiving unrecouped debts for legacy artists. Now, the final Big Three label, Universal Music Group (UMG), has officially followed suit.
(Source: Digital Music News, March 31, 2022) Read More >

Former Black Crowes Drummer Steve Gorman Sues Chris And Rich Robinson Over Unpaid Back Royalties
Former Black Crowes drummer Steve Gorman is suing fellow founding members Chris and Rich Robinson as part of a long-running dispute over his request to examine documentation to confirm the accuracy of his royalty payments and share in income as part of The Black Crowes Partnership.
(Source: SPIN, March 31, 2022) Read More >

Which Final Four Basketball Players Have Greatest Earnings Potential? It’s the Women.
This year’s collegiate basketball tournament has a new twist: Amateur players can now make money from endorsements, and some female athletes stand to make more than the men.
(Source: Bloomberg, March 31, 2022) Read More >

Global Value of Music Copyright Is Bigger Now Than It’s Ever Been
As we continue to digest the recent news that global recorded music revenues reached ‘the biggest ever’ total of $25.9 billion in 2021, the discovery of a very old report sheds new light on just how much the entire music copyright industry – artists, labels, songwriters, publishers, and CMOs – has grown since the heyday of CDs, and who got what share.
(Source: Tarzan Economics, March 30, 2022) Read More >

Supreme Court to Hear Copyright Fight Over Andy Warhol’s Images of Prince
The Supreme Court agreed on Monday to decide whether Andy Warhol violated the copyright law by drawing on a photograph for a series of images of the musician Prince. The case will test the scope of the fair use defense to copyright infringement and how to assess if a new work based on an older one meaningfully transformed it. The black-and-white image that Warhol used was taken in 1981 by Lynn Goldsmith, a prominent photographer whose work has appeared on more than 100 album covers.
(Source: The New York Times, March 28, 2022) Read More >

Is MLC Getting it Right in a Post-MMA World?
It’s becoming more obvious that the Mechanical Licensing Collective is not succeeding in its Congressional mandate to build the definitive music rights database so that all songwriters get paid. We often hear about MLC match rates being consistent with the “industry standard,” but this is pre-MMA thinking and is no longer relevant in a post-MMA world. (Not to mention the fact that it was these very “industry standards” that produced gigantic levels of unmatched payments that the MLC is mandated to fix.) As we will see, any match rate less than 100% is inconsistent with the MLC’s Congressional mandate which will be relevant when those in control of the MLC’s operations are reviewed by Congress in the not too distant future. Remember, The MLC, Inc. may be a private company in the traditional sense, but the MLC (different than The MLC, Inc.) is a statutory creation whose functionality is awarded to the current operators if they do a good job giving effect to the Congressional mandate. Congress can take that deal away and essentially “fire” The MLC, Inc.
(Source: Music Tech Solutions, March 27, 2022) Read More >

Adidas Shakes Up NIL Landscape With Offer for Athletes at All of Its Affiliated D-I Colleges
In a novel and potentially wide-reaching approach to the emerging landscape of name, image and likeness (NIL) deals, Adidas announced Wednesday an initiative that could turn thousands of college athletes into paid brand ambassadors within the next two years. The global sports giant said its NIL network will be available to eligible athletes across 23 sports at the 109 NCAA Division I schools affiliated with Adidas. That could put compensation within reach of more than 50,000 participants in sports programs, per the company.
(Source: The Washington Post, March 24, 2022) Read More >

Coachella Files a Cease and Desist Against Floatchella, a Small New England Music Fest
A small town music festival in rural Connecticut has been forced to change its name after coming too close to the branding of festival behemoth Coachella.
(Source: CelebrityAccess, March 24, 2022) Read More >

So You Wanna Play With Copyright? “Joyful Noise” Ostinato Isn’t Original Expression
The US Court of Appeals for the Ninth Circuit affirmed a district court’s order vacating a jury award of damages for copyright infringement and granting judgment as a matter of law, explaining that the musical work alleged to have been copied did not qualify as an original work of authorship but consisted only of “commonplace musical elements.”
(Source: McDermott Will & Emery, March 24, 2022) Read More >

New Music Monetization Structure Allows Artists to Retain Ownership of Their Work
A music catalog monetization structure called a “RECAP” (Artist Retained Equity in Catalog With Assignment of Proceeds) has been developed, which effectively gives artists the best of both worlds: a significant upfront payment and retained legal ownership of their catalog. Unlike traditional catalog deals where legal ownership is transferred to the buyer, in a RECAP the artist retains full legal ownership of their catalog, and economic ownership reverts back to the artist automatically at the end of the contract.
(Source: JD Supra, March 23, 2022) Read More >

Adidas’ Plan to Take Over College Sports: Sign Endorsement Deals With Up to 50,000 Student Athletes
Rather than exclusively going after individual sponsorship deals, Adidas announced Wednesday that it will create a name, image and likeness (NIL) network for up to 50,000 college athletes to become paid endorsers for the brand. Adidas did not say how much college athletes will be paid, but the program will be open college athletes at 109 Division 1 schools. Adidas says the program will be a “sweeping, equitable network” and will roll out over the next 12 months.
(Source: CNN Business, March 23, 2022) Read More >

Senate Bill Kicks Off New Online Copyright Battle
The SMART Copyright Act (S. 3880), introduced on Friday, promises to pit tech platforms and independent content creators against the music and movie industries. But since it’s being rolled out just months before November’s election, its potential to pass this legislative cycle is doubtful at best — and Leahy's retirement in January means Tillis will need to find a new cosponsor if the effort slips into next cycle.
(Source: POLITICO, March 21, 2022) Read More >

Putin v. Peppa Pig: How Russia’s War in Ukraine Threatens Intellectual Property Rights
Reacting to economic pressure, Russia is threatening the intellectual property rights of businesses associated with the sanctioning countries. For example, on March 6, 2022, the Kremlin issued a decree that essentially grants a no-cost license to steal patents held by owners in “unfriendly” countries, including the United States and the United Kingdom. While the decree only mentions patents explicitly, Russian courts have already used it to undermine copyright and trademark rights.
(Source: JD Supra, March 21, 2022) Read More >

Chris Cuomo Not Holding Back in Arbitration Demand Against CNN
Cuomo, a lawyer himself, has filed a scorched-earth demand for arbitration seeking $125 million in compensation from his former employer. Cuomo alleged that he was wrongfully terminated based on his relationship with then-Gov. Cuomo, who was also his brother. According to the demand, which was uncharacteristically made public, Cuomo claims that during the early days of the global COVID-19 pandemic, Gov. Cuomo became a media darling because of his decisive leadership in response to the public health crisis and “despite Cuomo’s and Gov. Cuomo’s expressed reservations, CNN demanded through its leadership that Cuomo interview Gov. Cuomo frequently.”
(Source: LAW.COM, March 21, 2022) Read More >

What Crypto Enthusiasts Get Wrong About Entertainment
Artists can now make a project without a studio or record label. It doesn’t mean they want to.
(Source: Bloomberg, March 20, 2022) Read More >

U.S. Senators Urge Probe of Live Nation's 'Exorbitant Fees' for Tickets
Democratic Senators Richard Blumenthal and Amy Klobuchar, both active in antitrust, wrote to the U.S. Justice Department on Tuesday to urge officials to investigate potential anti-competitive actions by Live Nation, which owns ticketing giant Ticketmaster. The lawmakers cited the company's previous violation of an agreement with the Justice Department that allowed the controversial merger of Ticketmaster and Live Nation in 2010. That was settled with Live Nation agreeing to refrain from retaliating against venues that do not use its Ticketmaster service for every event.
(Source: U.S. News, March 15, 2022) Read More >

Music is like a psychiatrist. You can tell your guitar things that you can't tell people. And it will answer you with things people can't tell you.

Paul McCartney

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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