The Pitch newsletter is a monthly update of legal issues and news affecting or related to the music, film and tv, positive arts, media, skilled athletics, eSports, and gaming industries. The Pitch incorporates 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 search out ourselves and lose ourselves at the identical time.” – Thomas Merton
Industry News
Social Media Influencers’ $100 Million SEC Charge Hints at Tighter Enforcement Going Forward
Plenty of social media influencers were charged on December 14 with fraud related to a “pump-and-dump” scheme which unfolded across multiple social media platforms. But securities attorneys think the case’s use of additional resources and more technical agencies suggest a latest level of collaboration within the social media enforcement space on behalf of the U.S. Securities and Exchange Commission. In keeping with the criminal grievance filed within the Southern District of Texas District Court, defendants Perry Matlock, Edward Constantin, Thomas Cooperman, Gary Deel, Mitchell Hennessey, Stefan Hrvatin, and John Rybarcyzk used their massive social media following to coordinate the acquisition of shares, promote the shares to their followers, after which dump those shares for “substantial profits.”
(Source: LAW.COM, December 14, 2022)
2022 Yr-End Biz Evaluation: Record-Setting Yr Marked by Bad Bunny, Ed Sheeran & Stadiums
“Drinking from a hearth hydrant,” the live industry’s mantra in 2022, was heard often and invoked continually for good reason: The tsunami of shows, festivals and live events flooding the market were mostly — but not at all times — met with voracious demand amidst myriad impediments. The yr, we now know, was not a “return to normalcy,” removed from it; reasonably, it was a historic, record-setting high-bar of a yr returning with astronomical grosses, ticket sales and average prices. Much more was completed with far less, which made the yr’s successes much more profound.
(Source: Pollstar, December 12, 2022)
Bored Ape NFT Class-Motion Lawsuit: Jimmy Fallon, Paris Hilton, Justin Bieber Also Face Charges
Bored Ape Yacht Club NFT is now facing a major class motion lawsuit against its name, alongside its parent company, Yuga Labs. The plaintiffs see a charge for allegedly pumping its prices through using public promotion from known names. Its case also involved famous Hollywood personalities and celebrities who were allegedly a part of this “scam” against investors. Celebrities including Jimmy Fallon, Paris Hilton, Kevin Hart, Justin Bieber, Snoop Dogg, Madonna, and other names also see the charge from affected individuals.
(Source: Tech Times, December 11, 2022)
The Ledger: Five Ways 2022 Pushed Music Royalties Forward
If the 2010s were the last decade that established streaming because the de facto way that almost all people enjoy music, the 2020s will probably be the last decade the platforms’ royalty rates took a breakthrough.
(Source: Billboard, December 9, 2022) [Subscription may be required]
Microsoft Gaming Ambitions Hobbled as U.S. Seeks to Block Activision Deal
The Biden administration moved to dam Microsoft’s (MSFT.O) $69 billion bid to purchase “Call of Duty” maker Activision Blizzard, throwing a stumbling block in front of the tech giant’s plans to rapidly expand its portfolio of popular games and catch up to larger rivals. Microsoft, which owns the Xbox console and game network platform, said in January 2022 that it could buy Activision for $68.7 billion in the most important gaming industry deal in history.
(Source: Reuters, December 8, 2022)
‘Goo Goo’ Bucks: What a ‘Wednesday’ Synch Is Value for the Cramps
In the most recent example of a stellar synch bringing in a surprise windfall, The Cramps‘ 1981 psychobilly classic “Goo Goo Muck” has turn out to be a breakout hit over the past couple of weeks Since Netflix’s latest Addams Family spinoff debuted on Nov. 23, including the series’ titular heroine performing dance sequence set to “Goo Goo Muck,” the track has taken off on streaming services. Within the week following the show’s release, from Nov. 25 to Dec. 1, The Cramps’ “Goo Goo Muck” was streamed on-demand over 2 million times within the U.S. — a greater than 8,650% increase from the common 47 weeks before this yr. That adds as much as $11,089.85 in a single week for the Capitol Records master recording and $2,492.33 in publishing, in accordance with Billboard estimates.
(Source: Billboard, December 6, 2022) [Subscription may be required]
Hulu’s Likely Final result Is Disney Writing Comcast a “Big Check,” NBCUniversal CEO Says
Despite earlier comments that Comcast could also be serious about retaining full control of Hulu, NBCUniversal CEO Jeff Shell said he believes the corporate will sell its stake to Disney. Comcast has a 33 percent stake within the streaming service, while Disney owns the remainder and has the choice to purchase out Comcast starting in January 2024. Speaking at UBS’s Global TMT Conference in Latest York, Shell said he believes that’s likely the timeline and plan of action, while also talking up the worth of the stake.
(Source: The Hollywood Reporter, December 5, 2022)
‘A Dud’: European Union’s $500,000 Metaverse Party Attracts Six Guests
A European Union plan to throw a virtual party within the “metaverse” to interact young people in its policies flopped spectacularly after only six people turned up. The EU Commission’s foreign aid department splashed out £332,000 ($500,000) to create the metaverse — a web-based square where people could log in to a virtual concert to fulfill others and learn in regards to the bloc.
(Source: The Sydney Morning Herald, December 2, 2022)
Google Strikes $9.4 Million Settlement With FTC for Paying Djs and Influencers to Praise Phones They Never Touched
The FTC and 4 state attorneys general struck a $9.4 million settlement with Google over allegations that Google covertly paid celebrities money to advertise a phone none of them had ever used. The FTC’s announcement states that the agency had previously filed suit against Google and iHeartMedia for airing nearly 29,000 deceptive endorsements by radio personalities and influencers, promoting their use of and experience with Google’s Pixel 4 phone in 2019 and 2020. The FTC and state AGs said the DJs and influencers had never actually a lot as touched the phones, violating truth in promoting rules.
(Source: Techdirt, December 2, 2022)
A Music Agent Figured Out How To Get COVID Funds for Artists. Now He Says a Rival Stole His Idea
A talent manager who allegedly helped artists like Vampire Weekend and Marshmello gain access to $200 million in COVID-19 relief funds is the goal of a latest lawsuit that claims he stole the thought to tap those government funds — aimed primarily at helping venues, not artists — from any person else. In a grievance filed on Nov. 30 in Los Angeles court, longtime music agent Laurence Leader says he was the primary to understand that artists may additionally give you the chance to access Shuttered Venue Operators Grants, a COVID-era federal program that gave out greater than $14 billion to assist live venues shuttered by the pandemic. But Leader claims his “novel idea” was quickly stolen by talent manager Michael Oppenheim, who then allegedly used the identical scheme to secure greater than $200 million in SVOG funds for his own clients on the talent firm NKSFB, including Vampire Weekend, Marshmello, Common, Lil Wayne and plenty of others.
(Source: Billboard, December 2, 2022) [Subscription may be required]
Fake Streams Aren’t Slowing Down
Under the terms of the deal, Legendary’s movies will probably be distributed and marketed globally by Sony, excluding China, where Legendary East will handle those duties. Sony will even handle home entertainment and TV distribution for those movies. Sony doesn’t have a streaming service, and Legendary will proceed to partner with other firms for streaming, because it has with Netflix on the Enola Holmes movies.
(Source: Billboard, December 1, 2022) [Subscription may be required]
Legendary Pictures Finds Latest Home at Sony
This winter, HBO and Warner Bros. Discovery will fan the flames of a latest method to engage “Game of Thrones” fans — and generate incremental revenue — with the launch of digital-collectible NFTs based on the epic fantasy franchise. Warner Bros. Discovery’s consumer products group announced plans for “Game of Thrones: Construct Your Realm,” which can let users purchase unique NFTs, in addition to trade and sell them.
(Source: The Hollywood Reporter, November 28, 2022)
Can Indie Musicians Afford To Keep Their Shows on the Road?
The managers, agents, and bus rental firms behind the scenes dish on why so many concert tours—especially ones by smaller indie artists—are getting canceled.
(Source: The Every day Beast, November 27, 2022)
Ban on Beer Is Latest Flash Point in World Cup Culture Clash
Ever since Qatar was surprisingly awarded the hosting rights to the World Cup greater than a decade ago, local organizers and global soccer leaders had insisted that beer — a fixture at sporting events world wide, but one which is tightly controlled in Qatar — can be available for fans. Two days before the event’s first game, though, that message modified.
(Source: The Latest York Times, November 18, 2022)
Mariah Carey Is Not the Sole “Queen of Christmas,” Trademark Board Says
Her music will be the unofficial anthem of the vacation season, but officially, Mariah Carey just isn’t the “Queen of Christmas” — and even the vacation’s “princess” — the U.S. Trademark Trial and Appeal Board ruled. Carey filed a petition last yr to trademark the name “Queen of Christmas.” But that petition failed, in accordance with a press release by Christmas music artist Elizabeth Chan, who has been vocal about her opposition to Carey’s request. Chan is “the world’s only full-time Christmas music recording artist,” in accordance with the press release, and has held the nickname “Queen of Christmas for years,” as produce other artists. In keeping with the discharge, the trademark board not only rejected Carey’s request to exclusively use the title, but additionally “rejected and denied” her requested trademarks of “Princess Christmas” and “QOC.”
(Source: CBS News, November 16, 2022)
Megan Thee Stallion Secures Restraining Order Against Her Label Ahead of This Weekend’s AMAs
The legal backwards and forwards between Megan Thee Stallion and her label 1501 Certified Entertainment continues, with the rapper — real name Megan Pete — securing a restraining order to stop the label from interfering in her efforts to capitalize on this weekend’s American Music Awards. There was loads of legal wrangling between Pete and 1501 lately. She originally claimed that her take care of the label didn’t follow music industry conventions and was unfairly skewed in 1501’s favor. After she went legal on the matter, 1501 agreed to amend elements of that deal, leading to Pete’s lawsuit being dismissed.
(Source: Complete Music Update, November 15, 2022)
Broncos’ Aaron Patrick Seeks Unspecified Damages Over Sideline Injury
Denver Broncos outside linebacker Aaron Patrick has filed a lawsuit within the Superior Court of California that alleges negligence when he tore his left ACL within the team’s Oct. 17 game against the Los Angeles Chargers in SoFi Stadium. The lawsuit, a duplicate of which was obtained by KTLA TV in Los Angeles, names the NFL, the Rams, the Chargers, SoFi Stadium, ESPN and a number of other others, including Kroenke Sports & Entertainment, which owns the Rams and the stadium.
(Source: ESPN, November 15, 2022)
How Gaming Could Reshape Music Distribution
While we’re only on the very start of this latest era, MUTEK’s recent Immersive Collection is a forward-thinking step that might thoroughly be the primary rumblings of some extent in music history that might be so huge it’s almost not possible to grasp. It’s the moment where the music industry stops being the gaming industry’s less wealthy, less healthy little brother; when we will finally stop pondering of music fans and gamers as two separate demographics; and when we will reward artists and music industry professionals fairly.
(Source: Music Ally, November 15, 2022)
Madison Square Garden Doubles Down on Plaintiffs Lawyer Ban, Even After It Backfires
After trial judges in each Latest York State Supreme Court and Delaware Chancery Court criticized a months-old MSG policy to ban plaintiffs lawyers who’ve sued the corporate for any reason from attending events at any of their venues, MSG sent out a latest letter reinforcing the ban. Plaintiffs lawyers usually are not allowed into MSG, Radio City Music Hall, the Beacon Theater or the Chicago Theater, regardless of how they obtained tickets, the brand new letter said. And if they fight to defy the ban and enter one in every of those venues, MSG advised, they are going to not be allowed in.
(Source: Reuters, November 15, 2022)
Odell Beckham Jr. Files Lawsuit Against Nike, Says Company Owes Him $20 Million
Free agent wide receiver Odell Beckham Jr. has filed a lawsuit against Nike stemming from his final endorsement contract that he had signed with the apparel company. Beckham is alleging that the corporate owes him greater than $20 million related to the endorsement deal.
(Source: CBS, November 15, 2022)
Pink Floyd Wanted $500 Million For Its Music. What Went Improper?
When members of the band Pink Floyd decided to sell their catalog, that they had every reason to imagine they’d rating a payday that might maintain their great grandchildren. Legendary acts have been closing deals for record sums and few of them had a roster of albums as popular as Dark Side of the Moon and The Wall. Initial bids topped $ 500 million. But months into the method, the band hasn’t reached a deal. The list of potential bidders has shrunk, and the estimated value has together with it.
(Source: Bloomberg, November 13, 2022)
3LAU Made Thousands and thousands Off His Music NFTs. Now a Collaborator Claims She’s Owed a Cut
Justin Blau, the DJ/producer and NFT hotshot higher often known as 3LAU, has been accused of not adequately compensating one in every of his collaborators with the proceeds he produced from a blockbuster NFT sale in early 2021. The artist Luna Aura (real name Angela Anne Flores) has filed a latest lawsuit against Blau, claiming he only offered her a one-time payment of $25,000 after he raked in over $11 million from NFT sales that partly involved their song 2017, “Walk Away.” Flores is accusing Blau of unjust enrichment and breach of contract, saying Blau and his company 3LAU Entertainment “didn’t seek Luna Aura’s permission or a license… to incorporate her work within the auction, nor was Luna Aura adequately compensated for her work.”
(Source: Yahoo.com, November 10, 2022)
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