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
Soundgarden and Chris Cornell Estate Settle Lawsuit
Vicky Cornell, on behalf of the Estate of Chris Cornell, and the surviving members of Soundgarden — Kim Thayil, Matt Cameron and Ben Shepard — have settled a contentious legal battle that will allow the release of new music the band had been working on up to the time of the singer’s death from suicide in 2017. “The reconciliation marks a new partnership between the two parties, which will allow Soundgarden fans around the world to hear the final songs that the band and Chris were working on,” reads a statement by the relevant parties. “The two parties are united and coming together to propel, honor and build upon Soundgarden’s incredible legacy as well as Chris’s indelible mark on music history — as one of the greatest songwriters and vocalists of all time.”
(Source: The Variety, April 17, 2023)
Appeals Court Tosses $25 Million Lawsuit Against Live Nation Over All-Women Country Festival Concept
Singer Rae Solomon claimed that the live event giant led her to believe it would invest in her idea for a “modern” take on Lilith Fair with a “predominantly country spin,” only to back out later. She alleged that Live Nation stole her concept when organizing an all-women day at the 2019 Lake Shake Festival. But the U.S. Court of Appeals for the Sixth Circuit ruled that Live Nation had not “made any misrepresentations in its dealings with Solomon.” The court stated that Live Nation had only offered “sales talk, future intention, and opinion” but no concrete plans to work with her.
(Source: Digital Music News, April 17, 2023)
Mo’Nique Sues Paramount Over Unpaid Royalties for ‘The Parkers’
Mo’Nique Hicks is taking Paramount to court over alleged unpaid royalties for The Parkers. In a complaint filed in Los Angeles Superior Court, the comedian alleges that an audit of the show concluded that the network “inequitably structured the Series’ finances to artificially depress its profitability” so it can “retain tens of millions that would otherwise be contractually due and owed.” She also claims that Paramount likely deprived the show’s writers and creators of their rights to profit participation.
(Source: The Hollywood Reporter, April 13, 2023)
Golfer Greg Norman Sues F45 for $1.75mm in Unpaid Promotional Services
Fitness company F45 was sued by brand ambassador and hall of fame golfer Greg 'The Shark' Norman on April 13 in California Superior Court for Los Angeles County. The suit, brought by Loeb & Loeb, seeks $1.75 million in allegedly unpaid invoices for marketing and promotional services.
(Source: AMLaw.com, April 13, 2023)
Music Supervisors Brace for Impact of Potential Hollywood Writers Strike
Unlike actors, directors, music editors and other unionized professionals who would still receive contractual benefits in the event of a strike, music supervisors are a largely freelance group of specialists who lack employer-provided healthcare, paid leave and safety protections. So the supervisors are more vulnerable than many of their colleagues if the Writers Guild of America follows through with a walkout when its members’ contract with studios and networks expires May 1, 2023.
(Source: Billboard, April 12, 2023) [Subscription may be required]
Paramount+, Formula 1 Ink Promotional Deal
In their drive to connect with existing fans and hunt for new devotees, Paramount Global’s streaming service Paramount+ and Liberty Media’s Formula 1 racing circuit are looking to step on the gas with a promotional partnership for the 2023-2024 season, including branding on racetracks, digital sponsorships and plans for Paramount+ series, movies and characters “taking center stage inside Fan Zone areas.” With the deal, the first of its kind for Formula 1, Paramount+ becomes an official partner of the circuit. The partnership kicked off with the Australian Grand Prix in Melbourne on Sunday, which featured promotions for Paramount+ and its Kiefer Sutherland spy thriller Rabbit Hole.
(Source: The Hollywood Reporter, April 12, 2023)
Cubs’ New Partnership Is an MLB First
The club announced that Chicago-based Mynd Drinks will be their official CBD partner, becoming the first in the league to do so. As part of the deal, the company will have on-field signage on the baselines along with a few in-game features at Wrigley Field. Mynd Drinks will also have international marketing rights for the Cubs-Cardinals series in London on June 24 and 25. This comes after the MLB signed its own CBD partnership deal in October 2022 with Charlotte’s Web.
(Source: WGN TV News, April 7, 2023)
Madison Square Garden Wins Ticket Scalpers Lawsuit, but Was the Judge Wrong?
Madison Square Garden and embattled CEO James Dolan are celebrating a decisive victory. A New York Supreme Court Justice upheld a previous ruling that allowed MSG Entertainment and their subsequent properties to prohibit professional ticket scalpers from having season tickets. The move restricts ticket scalpers from being allowed to own tickets for the Rangers, Knicks and Liberty at the World’s Most Famous Arena.
(Source: OutKick, April 6, 2023)
Should Stars Register Their AI Likeness? The Tom Cruise Deepfake Startup Wants Them To
Underscoring the growing debate about ownership of one’s likeness in the age of AI and Deepfakes, Tom Graham, CEO of generative AI tech firm Metaphysic — the company known for popularizing a deepfake TikTok account spoofing Tom Cruise — has submitted his AI likeness for copyright registration with the U.S. Copyright Office. He seeks to demonstrate how copyright laws may be used to protect against the unpermitted creation and dissemination of content in which a person’s likeness is duplicated through AI.
(Source: The Hollywood Reporter, April 5, 2023)
Lionsgate to Be Anchor Tenant for Metro Atlanta Studio Complex
Lionsgate has signed on to be the anchor tenant for a new studio complex in metro Atlanta. Great Point Studios, the owner of the complex, has signed a deal with the film studio Lionsgate to come on as the anchor tenant for the 40-acre, $200 million facility, according to a press release. As the anchor tenant, Lionsgate will have naming rights. Lionsgate Studios Atlanta will be the name of the studio’s portion of the facility, which will be 500,000 square feet with 12 sound stages. The complex will be located in Douglas County, where much of Lionsgate’s hit franchise The Hunger Games was filmed.
(Source: RoughDraft Atlanta, April 5, 2023)
Magic Johnson Confirms Commanders “Bid Is In”
Magic Johnson has made it clear. He’s part of a group that is trying to buy the Washington Commanders. “Our bid is in,” Johnson said on Today, via Ben Standig of TheAthletic.com. “We hope that we win. We don’t know what’s going to happen . . . We’ll see what happens with Mr. Snyder making that decision. But we’re excited about it.”
(Source: NBC Sports, April 4, 2023)
Apple Music Trademark Blocked Over Branding Conflict With Musician
A court has rejected Apple's attempt to register the Apple Music trademark to its "Apple Corps" brand it acquired from The Beatles, favoring an independent artist. The company argued that it had priority over musician Charlie Bertini's "Apple Jazz" trademark rights, that had been in use since 1985. Apple owns an earlier trademark from the Beatles' music label Apple Corps Ltd.
(Source: AppleInsider, April 4, 2023)
Endeavor’s UFC, WWE to Merge; Ari Emanuel to Serve as CEO, Vince McMahon as Executive Chair
Endeavor Group Holdings and sports entertainment powerhouse WWE made things official on Monday, unveiling a definitive agreement to form a new, publicly listed company consisting of two “iconic, complementary” global sports and entertainment brands: UFC and WWE. Endeavor will hold a 51% controlling interest in the new company, with existing WWE shareholders owning a 49% interest.
(Source: The Hollywood Reporter, April 3, 2023)
U.S. Justice Department Settles With Activision Over Esports Salary Limits
The U.S. Justice Department agreed to a settlement with Activision Blizzard (ATVI.O) to resolve the department's lawsuit filed on Monday over salary limits in professional esports leagues. The department said in its lawsuit filed in U.S. District Court in Washington that Activision Blizzard Inc, which owns leagues built around its "Overwatch" and "Call of Duty" video games, and the independently owned teams imposed a tax that "effectively operated as a salary cap, penalized teams for paying esports players above a certain threshold and limited player compensation in these leagues."
(Source: Reuters, April 3, 2023)
Actors’ Equity Issues Strike Threat for Broadway National Tours
Actors’ Equity has issued a strike threat against The Broadway League. The union, which represents more than 51,000 stage managers and actors, has been bargaining with The Broadway League, which represents industry producers, presenters and general managers, since mid-January to create a new touring contract. Now, Actors’ Equity has authorized executive director Al Vincent Jr., its lead negotiator, to call a strike on all Broadway national tours, if he deems it necessary, after the union says it ran into roadblocks around a number of key issues.
(Source: The Hollywood Reporter, April 3, 2023)
Minor League Salaries Will Double Under New Deal
Major League Baseball and the players’ union have finalized the first collective bargaining agreement for minor league players, which was ratified by over 99% of the minor league membership, according to the union. The five-year deal still requires the ratification of the 30 major league owners, but it was negotiated by the commissioner’s office on their behalf.
(Source: The New York Times, March 31, 2023)
Fortnite Is the Future of Music Streaming
The blockbuster industries of pop music and gaming have been collaborating for almost as long as games have existed — at least since 1983, when Journey got their very own Midway arcade cabinet. Those kinds of branded crossovers have only grown with time, especially in online games like Fortnite, which has transformed from a straightforward multiplayer battle royale to a unique multimedia experience. Pop music has had an audible presence in Fortnite for years now, with artists like Travis Scott and Ariana Grande spearheading the virtual concert trend that’s spread to other platforms like Roblox.
(Source: Kotaku, March 30, 2023)
BMI Beats Rate Court Dispute vs Concert Promoters, Giving Songwriters 138% Raise in US
U.S. music rights management company BMI has clinched victory in a rate court dispute against live events promoters Live Nation, AEG, and the North American Concert Promoters Association (NACPA). The win will see songwriters get a 138% increase in rates to 0.5% of every event’s revenue. Live Nation downplayed the impact of the ruling on concert promoters, saying this will instead cost performers about $15 million a year, divided among thousands of artists
(Source: Music Business Worldwide, March 29, 2023)
Disney Shuts Down Metaverse Unit as Part of First Wave of Layoffs
As part of a companywide cost-cutting effort, Disney has axed its cross-divisional Next Generation Storytelling & Consumer Experiences group, which encompassed the Mouse House’s metaverse ambitions. The elimination of Disney’s Next Generation Storytelling & Consumer Experiences group, led by company veteran Mike White, affects about 50 employees, Variety confirmed. The news was first reported by the Wall Street Journal. A Disney rep declined to comment.
(Source: The Variety, March 28, 2023)
Disney, Major Studios Get $30M From Illegal Streaming Sites Amid Piracy Crackdown
A coalition of top movie and TV studios have secured a $30 million judgment against the operator of two illegal streaming sites. The studios and defendant Dwayne Johnson (no relation to the actor) agreed to resolve the suit in a deal that includes an injunction barring him from continuing to operate any service that allows users to pirate movies, according to court documents filed on March 27. Universal, Disney and Netflix sued Johnson in Dec. 2021 for copyright infringement. Universal, Warner Bros., Paramount and Apple, among others, also joined in the suit.
(Source: The Hollywood Reporter, March 27, 2023)
Wife of Founding Roots Member Sues Questlove and Black Thought for Fraud
The estate of former Roots' bassist Leonard Hubbard and his widow Stephanie Hubbard have filed a lawsuit against the band's co-founders and several other parties relating to the band's business dealings, alleging that they defrauded Hubbard out of millions of dollars over the last decade. The lawsuit claims that Ahmir "Questlove" Thompson, Tariq "Black Thought" Trotter, Roots manager Shawn Gee and Roots employee Munir Nuriddin violated federal RICO laws by scheming to deny Hubbard his earnings from the band since 2013. In addition to the band's founders and management, the suit includes Live Nation Entertainment, The Roots on Tour and several companies that have handled the band's business dealings.
(Source: PhillyVoice, March 27, 2023)
Can Deezer Pioneer a New Streaming Royalty Model With ‘More Flexibility’?
French streaming service Deezer and Universal Music Group announced this month that they are partnering to develop and test new potential payment models that would more fairly reward artists, similar to a partnership UMG launched in January with Tidal. While the streaming services and labels are still a long way off from implementing new streaming royalty payment models, Deezer’s chief executive Jeronimo Folgueira spoke with Billboard about some of the ideas being explored and the economic imperatives that are driving his company to push for a new way to pay rights holders.
(Source: Billboard, March 22, 2023) [Subscription may be required]
Can You Copyright a Rhythm? Inside the Reggaeton Lawsuit That Could Shake the Pop World
With the release of their song "Fish Market" in 1989, the Jamaican duo Cleveland “Clevie” Browne and Wycliffe “Steely” Johnson inadvertently changed the course of pop music. The track featured the first known example of what would come to be known as a “dembow” rhythm — the percussive, slightly syncopated four-to-the-floor beat that travelled from reggae to become the signature beat of reggaeton, today the world-conquering sound of Latin American pop. Now, more than 30 years after "Fish Market" was released, Steely & Clevie Productions is suing three of reggaeton’s most celebrated hitmakers — El Chombo, Luis Fonsi and Daddy Yankee — for what they characterisz as unlawful interpolation of "Fish Market’s" rhythm, and are seeking the credit — and royalties — they say they deserved from the start.
(Source: The Guardian, March 22, 2023)
Hidden Concert Ticket Fees Would Be Banned Under New Senate Bill
Sens. Richard Blumenthal (D-CT) and Sheldon Whitehouse (D-RI) responded to President Joe Biden’s calls for fairness and transparency in ticketing fees by introducing the Junk Fee Prevention Act on March 22. While the proposed legislation goes beyond live music, it would transform how concert tickets are sold and attempts to reduce fees that inflate tickets’ face values.
(Source: Billboard, March 22, 2023) [Subscription may be required]
A Lawsuit for the Return of Painting Stolen by the Nazis
A lawsuit was filed against the Art Institute of Chicago was recently removed to the New York Southern District Court. The complaint was filed by a trust for World War II-era cabaret performer Franz Friedrich Grünbaum and other plaintiffs seeking the return of a painting by 19th century artist Egon Schiele entitled "Russian Prisoner of War," which was stolen by the Nazi regime while Grünbaum was imprisoned in the Dachau concentration camp.
(Source: AMLaw.com, March 22, 2023)
Netflix Sued Over Its Hit Show ‘Outer Banks’
Netflix was hit with a copyright infringement lawsuit in Missouri Western District Court over its hit show Outer Banks. The lawsuit, filed by author Jeffrey D. Wilson, alleges that Outer Banks uses similar themes to the plaintiff's copyrighted Queen Anne’s Revenge without authorization.
(Source: AMLaw.com, March 22, 2023)
Lindsay Lohan, Jake Paul and Soulja Boy Charged in Crypto Scheme
The Securities and Exchange Commission charged eight high-profile celebrities in a crypto scheme tied to Justin Sun and his companies Tron Foundation Limited, BitTorrent Foundation Ltd. and Rainberry Inc. The stars were charged with touting cryptocurrencies associated with Sun’s companies “without disclosing that they were compensated for doing so and the amount of their compensation.”
(Source: The Hollywood Reporter, March 22, 2022)
Isley Brothers Battle in Court Over Trademark Rights to Band Name
The Isley Brothers are headed to court over the trademark rights to the band’s name. In a lawsuit filed in Chicago federal court, Rudolph Isley accused his brother Ronald Isley of improperly attempting to secure a federal trademark registration on the “The Isley Brothers” — even though the name is supposed to be jointly owned. “Counsel for defendant Ronald Isley has asserted in correspondence that defendant alone has exclusive ownership of the [trade]mark,” Rudolph’s lawyers wrote in their complaint. “These assertions . . . are false.” The lawsuit claims that Ronald, “acting without the knowledge or approval of Rudolph,” applied in 2021 at the U.S. Patent and Trademark Office to register “The Isley Brothers” as a trademark under his name alone. The agency approved the application and registered the trademark last year.
(Source: Billboard, March 21, 2023) [Subscription may be required]
Netflix Sued for Use of Drone Footage of Luxury Home
Netflix and real estate company The Agency were sued for invasion of privacy in California Superior Court for Los Angeles County in connection with the reality show Buying Beverly Hills. According to the complaint, the defendants captured drone footage of the plaintiffs' luxury home in the Hollywood Hills to create a promotional ad on Netflix's home page, causing the plaintiffs to be bombarded with visitors and phone calls from realtors.
(Source: AMLaw.com, March 21, 2023)
Class Action Filed Against Paramount Global by Group of Comedians
Paramount Global and its subsidiary Comedy Partners were slapped with a class action in New York Southern District Court in connection with audio and audio-visual recordings of certain comedians' comedy performances. The complaint accuses the defendants of wrongfully "commandeering" comedians royalties by entering undisclosed negotiations and direct licensing agreements with third-parties, such as SiriusXM. According to the suit, the defendants entered these agreements without the knowledge or consent of the comedians, cutting them out their statutory royalties rights.
(Source: AMLaw.com, March 21, 2023)
Actress Gabrielle Union Files Breach of Contract Suit Against Saadia Group for Breach of Endorsement Agreement
Flawless, a fashion and lifestyle brand owned by actress Gabrielle Union, filed a breach-of-contract lawsuit against Saadia Group in New York Southern District Court. The suit seeks over $1.5 million in allegedly unpaid endorsement compensation and royalties for the use of Union's name and likeness in connection with apparel, accessory merchandise and other products.
(Source: AMLaw.com, March 20, 2023)
WGA Takes Aim at Mini Rooms With Proposal to Set Minimum Staff Level for TV Series
The solo TV auteur may soon be a thing of the past. The Writers Guild of America is seeking to set a minimum staffing level for writers rooms. That means the days when Mike White or Craig Mazin could write an entire season of prestige TV all by themselves could be coming to an end. The guild argues that studios are squeezing more work out of fewer writers over a shorter time span, and paying them less than they’re entitled to. And the union’s leadership believes that it’s time to set basic standards around the size and duration of a writers’ room.
(Source: The Variety, March 16, 2023)
Copyright Office Launches New Artificial Intelligence Initiative
The U.S. Copyright Office launched a new initiative to examine the copyright law and policy issues raised by artificial intelligence (AI), including the scope of copyright in works generated using AI tools and the use of copyrighted materials in AI training. This initiative is in direct response to the recent striking advances in generative AI technologies and their rapidly growing use by individuals and businesses. The Copyright Office has received requests from Congress and members of the public, including creators and AI users, to examine the issues raised for copyright, and it is already receiving applications for registration of works including AI-generated content.
(Source: Copyright.gov, March 16, 2023)
Nickelback Defeats Song-Theft Copyright Lawsuit Over ‘Rockstar’: ‘They Do Not Sound Alike’
A federal judge dismissed a copyright lawsuit claiming Nickelback ripped off its 2006 hit “Rockstar” from an earlier song called “Rock Star.” Adopting recommendations from a lower judge, U.S. District Judge Robert Pitman ruled that there was zero evidence that Chad Kroeger and the other members of the rock band ever heard Kirk Johnston’s earlier song — and that the two songs also just didn’t share much overlap. “Stated simply, they do not sound alike,” the judge wrote in the order adopted on March 16. “Where both songs evoke similar themes, they are rendered dissimilar through the vivid detail of the original expression in Nickelback’s lyrics.”
(Source: Billboard, March 16, 2023) [Subscription may be required]
Barstool Sportsbook Takes Down ‘Can’t Lose’ Bet in Massachusetts
With online sports betting now active in Massachusetts, the Massachusetts Gaming Commission is turning its attention to oversight of sports betting operations. On March 15, the commission discussed possible unlawful action by Barstool for using “unfair or deceptive” messaging in a sports betting offer. Earlier this week, in advance of the NCAA Tournament, Barstool promoted a “Big Cat Can’t Lose” wager in Massachusetts, which featured odds for early round March Madness games. Dan “Big Cat” Katz is a host of a Barstool podcast. He also appears in public appearances for the brand.
(Source: PlayMA, March 15, 2023)
Pink Floyd’s $500 Million Catalog Sale Is ‘Basically Dead’ — Or Is It?
Pink Floyd’s proposed $500 million sale of the rights to their iconic five-decade, multiplatinum recorded-music catalog is “basically dead” because the surviving band members “just can’t get along,” four sources close to the situation tell Variety — however, sources close to the band insist that it’s not. “You could say the deal is no longer ‘active,’” one of the four sources says. “But at the same time, it’s still on the table. It’s a strange situation!”
(Source: The Variety, March 14, 2023)
Metallica Acquires Furnace, One of America’s Largest Vinyl-Manufacturing Companies
Metallica has always had a strong independent streak for a band that spent its formative years on a major label. Now, a decade after getting the rights back to their biggest albums, the band is buying Furnace Record Pressing, a plant in Alexandria, Va., to serve its vinyl business, which has grown by keeping catalog albums in print and releasing ambitious box sets aimed at its legions of hardcore fans. For a decade, Furnace has pressed records for the band, which has a reputation for releasing high-quality vinyl. At a time of supply-chain issues and manufacturing delays, the plant helped the group keep most of its albums available, plus a growing number of ambitious box sets. (Its most recent “black album” box set includes a double LP of the album, three live LPs, 14 CDs and 6 DVDs.) Last year, the group pressed more than 902,500 pieces of vinyl for more than 620,000 packages, according to management, not all of which are made at Furnace. The band sells roughly half of these in the U.S.
(Source: The Variety, March 14, 2023)
Florida Makes Change to NIL Law: What You Need to Know
What changed? Prior to this bill being signed, schools or coaches in Florida were not allowed to be directly involved with NIL deals for athletes, rules that were seen as more strict than in other states. What it means: The law strikes down the restrictions on schools or coaches in facilitating NIL deals, allowing programs in Florida to work under rules comparable to states with less restrictive NIL measures in place.
(Source: FanNation, February 17, 2023)
Art washes away from the soul the dust of everyday life.
