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
When the Music Stops: Best Practices for Band Agreements
The American journalist and cultural gadfly Hunter S. Thompson once described the music business as “a cruel and shallow money trench, a long plastic hallway where thieves and pimps run free, and good men die like dogs. There’s also a negative side.” That’s anything but a ringing endorsement, to be certain.
(Source: Arnall Golden Gregory LLP, March 16, 2022) Read More >
Industry News
NFTs: What Are Your Rights?
So, you bought an NFT. You might be wondering whether you’ve bought into the future or wasted thousands of dollars. Polar-opposite thoughts, but which is right? This article explores the rights you have when you buy an NFT, what benefits and features you might receive, and how they can help grow your business.
(Source: LAW.COM, March 15, 2022) Read More >
Appeals Court Sides With Katy Perry in Dark Horse Song-Theft Case
The Ninth Circuit appeals court in the US recently sided with Katy Perry in the big old ‘Dark Horse’ song theft case. The musical elements Perry’s hit has in common with earlier track ‘Joyful Noise’ were “commonplace” and therefore not protected by copyright in isolation, judges concluded. The ruling confirms that the US appeals court where many song-theft disputes end up remains cautious about over-extending copyright protection in a way that could hinder the songwriting process.
(Source: Complete Music Update, March 11, 2022) Read More >
What Does Bandcamp’s Sale to Epic Games Mean for Independent Musicians?
For years, Bandcamp has been hailed as the anti-Spotify because of its artist-friendly business model. So as news of the acquisition spread through social media, many independent artists reacted with skepticism. After all, up until it was bought by Epic, Bandcamp was a small, privately-held company whose growth since its founding in 2008 has been slow, although profitable. Music and artist merchandise are its main products, but founder Ethan Diamond likens it to Etsy—a place for craftspeople to connect directly with customers—rather than the streaming giants one might assume are its competition. So what does Epic, a company with a $28.7 billion valuation as of 2021 and ambitions in the metaverse, plan to do with Bandcamp, a modest platform with just over 100 employees?
(Source: KQED, March 9, 2022) Read More >
Downtown Music Will Spend $200 Million Without Buying a Song
Downtown Music Holdings, a closely held player in the recording industry, has created a $200 million fund it will use to advance artists money in exchange for a share of their future song royalties. The aim is to make financing a part of the portfolio of services that Downtown Music can offer to artists and independent labels, such as distribution. While record labels and private equity firms have spent billions in recent years to buy music catalogs from artists like Bob Dylan and Bruce Springsteen, Downtown is going in the opposite direction. It won’t take ownership in artists’ work.
(Source: Bloomberg, March 9, 2022) Read More >
Year-End 2021 RIAA Revenue Statistics
In 2021, recorded music revenues in the United States grew 23% to $15.0 billion at estimated retail value. All major formats of music grew versus the prior year with the exception of digital downloads. Paid subscriptions continued to be the biggest growth driver, resulting in the sixth consecutive year of growth for music revenues. At wholesale value, 2021 revenues were up 22% to $9.8 billion. On a nominal basis, these revenue levels exceed the record high of $14.6 billion reported in 1999, but adjusted for inflation 2021 figures remain 37% below that value level.
(Source: RIAA, March 9, 2022) Read More >
Snoop Dogg Joins Esports Outfit Faze Clan as a Content Creator
As part of Faze Clan, Snoop will join the company’s board of directors once it goes public later this year. On top of that, he will also “co-create content, participate in key business initiatives, and launch merchandise with the brand” under the alias Faze Snoop.
(Source: NME, March 8, 2022) Read More >
Nas Slammed With Lawsuit After Sharing Photo of Tupac on Instagram
The suit was filed in the Central District of California on Feb. 2, 2022, by the photographer who captured the photo, Al Pereira. He claims that the Queensbridge artist shared the image without his permission or licensing the work.
(Source: BET, March 8, 2022) Read More >
Apple, MLB Announce 'Friday Night Baseball' Package
Apple and Major League Baseball announced Tuesday that Apple TV+ will carry a weekly doubleheader on Friday nights in eight countries when the regular season begins. Games will initially be available without the need for an Apple TV+ subscription. The games will be exclusively on Apple TV+ and will not be available on team's regional sports networks.
(Source: ESPN, March 8, 2022) Read More >
The 10 Most Innovative Music Companies of 2022
Whether helping to connect fans or helping to connect musicians, these 10 companies are establishing new standards for the music industry.
(Source: Fast Company, March 8, 2022) Read More >
NFL Suspends Atlanta Falcons WR Calvin Ridley for at Least 2022 Season for Betting on Games
Atlanta Falcons wide receiver Calvin Ridley has been suspended for at least the 2022 season after gambling on games in 2021. The NFL released a statement Monday announcing his suspension, saying Ridley gambled on games over a five-day stretch in November 2021 when he was on the non-football injury list to address his mental health.
(Source: ESPN, March 7, 2022) Read More >
Dodgers Pitcher Trevor Bauer Files a Defamation Lawsuit Against Deadspin
Dodgers pitcher Trevor Bauer filed a defamation lawsuit against the sports news website Deadspin on Thursday, claiming the outlet “knowingly published false information” in its coverage of sexual assault allegations made against Bauer last year. The lawsuit contends that Deadspin “capitalized on a false accusation” that the pitcher fractured the skull of a woman who filed a petition for a restraining order against him. The lawsuit says that while other outlets later corrected their reporting after medical records attached to the woman’s petition showed no skull fracture and instead described an acute head injury, Deadspin “pushed forward with the false narrative of a skull fracture.”
(Source: Los Angeles Times, March 3, 2022) Read More >
Artist’s Talent Agencies Act Claim in CA Doesn’t Bar Personal Managers’ NY Lawsuit
Personal managers have long complained that the California Talent Agencies Act, Calif. Labor §1700 et seq., treats them inequitably. For example, personal managers claim the phrase “procure employment” in §1700.4(a), for determining when a state talent-agent license is needed for getting work for talent, doesn’t provide sufficient clarity to managers.
(Source: Law Journal Newsletters, March 1, 2022) Read More >
Why Are Hedge Funds Urging Songwriters to Sell Their Catalogs Right Now? Think About It.
Companies like JP Morgan, BlackRock and Oaktree Capital are smart investors and they think music catalogs are undervalued. For them, a 20-times multiple paid on a great music catalog represents a safe 5% return on investment. Additionally, there is likely to be a huge amount of previously earned income to be uncovered by these investors, due to these catalogs’ current owners being held up for various reasons. This will constitute a windfall benefit – one the seller will miss out on – that could pump up that 5% return dramatically.
(Source: Music Business Worldwide, March 1, 2022) Read More >
Who Gets Paid for a Stream?
Billboard explains how royalties flow from plays to rights holders.
(Source: Billboard, February 24, 2022) Read More >
The US Copyright Office Says an AI Can’t Copyright Its Art
The US Copyright Office has rejected a request to let an AI copyright a work of art. Last week, a three-person board reviewed a 2019 ruling against Steven Thaler, who tried to copyright a picture on behalf of an algorithm he dubbed Creativity Machine. The board found that Thaler’s AI-created image didn’t include an element of “human authorship” — a necessary standard, it said, for protection. The board’s decision calls “the nexus between the human mind and creative expression” a vital element of copyright. As it notes, copyright law doesn’t directly outline rules for non-humans, but courts have taken a dim view of claims that animals or divine beings can take advantage of copyright protections. A 1997 decision says that a book of (supposed) divine revelations, for instance, could be protected if there was (again, supposedly) an element of human arrangement and curation. More recently, a court found that a monkey couldn’t sue for copyright infringement.
(Source: The Verge, February 21, 2022) Read More >
“The Minions Do the Actual Writing”: The Ugly Truth of How Movie Scores Are Made
The streaming revolution is changing the way film composers get paid and exposing the flaws of a system where big names farm their scores out to uncredited “ghost composers.” Now, the artists actually writing the music are demanding recognition—and a fair share of the profits.
(Source: Vanity Fair, February 21, 2022) Read More >
Music Group Sues NBC, US Figure Skating Pair Over Use of Song During Winter Olympics
In the lawsuit first obtained by Reuters, the Marderosian brothers allege they were never contacted by Knierim or Frazier, Team USA or U.S. Figure Skating about licensing the track for their performance. They also allege NBC, USA Network and Peacock never inquired either since it was broadcasted on all mentioned platforms.
(Source: USA Today, February 19, 2022) Read More >
Many Believe the Big Ten’s Next TV Rights Deals Could Exceed $1 Billion Per Year
The Big Ten will become the first college conference to eclipse $1 billion per year when it negotiates its next media-rights deal later this year. That’s the opinion held by several well-placed sports business sources, who expect the conference to more than double the $440 million in annual rights fees that Fox and ESPN currently pay.
(Source: Awful Announcing, February 16, 2022) Read More >
Snoop Dogg Is Converting Death Row Records Into the First NFT Music Label
“Death Row will be an NFT label,” said Snoop. “We will be putting out artists through the metaverse…Just like we broke the industry when we was the first independent to be major, we want to be the first major in the metaverse.”
(Source: Fortune, February 16, 2022) Read More >
Braves Take Step Into Metaverse With Digital Truist Park
The Atlanta Braves recently unveiled a Digital Truist Park, a photo-realistic digital twin of the team’s home venue that marks the first venture into the metaverse by an MLB team. Powered by Epic Games’ Unreal Engine technology, the virtual platform will allow fans the opportunity to experience Truist Park and The Battery Atlanta in an immersive, multiplayer environment streamed directly to their browsers.
(Source: Sports Business Journal, February 15, 2022) Read More >
DJ Steve Aoki Said He Made More Money From His NFT Drop Last Year Than in a Decade of Making Music
The musician, who is one of the highest paid DJs in the world, spoke about his foray into NFTs at a private Gala Music event on February 10 in Inglewood, California, Decrypt first reported. In it, he said performing as a DJ makes up a majority of his revenue stream, while music royalties from his recordings don't "amount to very much." "If I was to really break down, OK in the 10 years I've been making music, six albums, and you culminate all those advances, what I did in one drop last year in NFTs I made more money," he said.
(Source: Markets Insider, February 15, 2022) Read More >
Ramping Up Festival Safety, Post-Astroworld: Concert Pros Consider Measures to Avert Future Disasters
In the wake of the Astroworld tragedy, should festivals and concerts have a single person charged with the power of stopping a show if conditions grow dangerous? What greater demands will insurers be making since that Texas festival pointed up how an entertainment event can turn deadly? And where does responsibility start, or the buck end, if things go terribly wrong at a show? These were some of the issues discussed at a panel titled “How the Next Era Of Music Festivals Will Be Safe, Sustainable and Sold Out,” presented at the Pollstar Live conference for concert pros at the Beverly Hilton Hotel.
(Source: Variety, February 14, 2022) Read More >
Sting Sells His Songwriting Catalog for an Estimated $300 Million
The deal with Universal Music covers his entire output as a songwriter, including solo work and hits by the Police like “Every Breath You Take.”
(Source: The New York Times, February 1, 2022) Read More >
Jim Marshall’s Estate Announce Auction for Never-Before-Seen Jerry Garcia Images as NFTs
The estate of legendary photographer Jim Marshall has announced the upcoming release of never-before-seen Jerry Garcia digital animation photo-sequences and digital images in the form of NFTs that will head to auction on Dec. 1. Total Digital Group has partnered with the photographer’s estate with plans to share 14 iconic Jerry Garcia digital NFT images and an NFT digital animation sequence from a photo session taken of Jerry Garcia at the Grateful Dead’s Headquarters on Front Street in San Rafael, Calif., in 1978.
(Source: Jambands.com, December 2, 2021) Read More >
The 10 Highest-Paid Twitch Streamers of 2021
Becoming an esports pro isn’t the only way to make money by playing video games. The industry has evolved in ways that no one could have ever imagined, and streaming and creating content are now also rivaling the monopoly that TV stations have when it comes to distributing content. Twitch is one of the top sources of online media consumption, alongside other streaming services and YouTube.
(Source: Dot Esports, October 9, 2021) Read More >
The idea is not to live forever; it is to create something that will.
—
Andy Warhol
