The Pitch - September 2022

Lawyers, Guns, and Money: Georgia Gun Laws and Public Events
The COVID-19 pandemic devastated the live event industry. For the greater part of two years, in-person concerts, theatrical performances, film festivals, and public gatherings were postponed and canceled due to legal mandates stemming from the public health emergency. In 2022, as the pandemic fog that shuttered the industry lifted, public events came roaring back to their pre-pandemic scale and frequency. However, the event industry in Georgia currently faces a new threat, which — like the pandemic — has the potential to acutely disrupt, if not permanently damage, the industry. In August, the promoters of the Music Midtown festival canceled the decades-old event just six weeks prior to the concert date. Although the organizers declined to comment as to the specific cause for cancelation, the Atlanta Journal-Constitution reported, the event “was canceled . . . in part due to the state’s laws surrounding guns in public parks.”

50 Cent Sues Miami Doctor for Allegedly Suggesting He Had Penis Surgery
50 Cent is suing a Florida doctor over allegations that she used an innocent photo with the rapper to falsely suggest that he’d had penile enhancement surgery. Attorneys for the rapper (real name Curtis Jackson) claimed he’d “graciously agreed” to take the pic with Angela Kogan, only to later discover that the “unscrupulous business owner” had repeatedly used it to promote her Miami plastic surgery practice. Kogan’s use of the image took a “disturbing turn” last month, Jackson claims, when she allegedly engineered an article on the website The Shade Room that “shockingly” made the “false insinuation” that Jackson had received penile enhancement himself.

(Source: Billboard, September 19, 2022) [Subscription may be required]

Kanye West Camp Tests Market for His Song Catalog, Seeking 35-Times Gross Profit
Kanye West has been quietly and intermittently shopping his publishing catalog — an asset that generates about $5 million a year for the hip-hop star, sources tell Billboard. Over the past 10 months, representatives for West have met selectively with prospective buyers to explore what kind of valuation his song catalog could fetch, these sources say.

(Source: Billboard, September 19, 2022) [Subscription may be required]

PayPal Says It Will Not Continue Its Sponsorship if Phoenix Suns Owner Robert Sarver Returns After Ban
PayPal, the jersey patch partner of the Phoenix Suns, said Friday it would not be renewing its sponsorship with the team should majority owner Robert Sarver continue in his role following his one-year suspension for racist and misogynist remarks.

(Source: ESPN, September 16, 2022)

David Zaslav’s Strategy Shift: Licensing Out Warners’ IP Treasure
The Lord of the Rings and Hobbit films are controlled by Warner Bros. and had been locked up exclusively for streaming on HBO Max by the company’s previous owner. The trilogy, which generated nearly $3 billion in box office revenue and comprised some of the best known IP in the HBO Max film library, was now up for grabs, at least on a nonexclusive basis. Whereas before, WarnerMedia zealously guarded its films for HBO Max, now Warner Bros. Discovery is open about the fact that, well, they are, as CEO David Zaslav says, “open for business.”

(Source: The Hollywood Reporter, September 16, 2022)

The Buying Mania for Old Songs Has Come to a Sudden and Ugly End
We’ve been living through a bizarre interlude in the music business. For the first time in roughly 500 years, the power brokers decided that old musicians and old songs were better investments than hot new artists. You would need to go back to the medieval era to find such reverence for old music. Back then, it was a matter of church sanction. In our own time, the worship of old songs is built on discounted cash flow projections (faulty ones, in my opinion). But they amount to the same thing—a notion that you can put your faith in familiar melodies. But now it looks like this investment trend has come to a sudden and ugly end.

(Source: The Honest Broker, September 12, 2022)

Minimal Oversight and Few Obvious Repercussions Leave YouTube’s Royalty System Ripe for Abuse
While YouTube’s content management system has a high level of friction that will inevitably cause errors, some players take advantage of it and siphon off royalties that do not belong to them, according to a dozen sources for this story. And more than 10 of those — including artist managers, lawyers and executives at other royalty collection companies — say they know of instances where Create has claimed royalties it has no right to receive. (All sources spoke on condition of anonymity due to fear of backlash; several backed up their allegations by sharing emails and screenshots with Billboard.)

(Source: Billboard, September 12, 2022) [Subscription may be required]

TikTok Sensation D'Amelio Sisters Form Company to Manage Their Brand
TikTok sensations Dixie and Charli D'Amelio and their parents Marc and Heidi D'Amelio have launched a namesake company with a $6M seed round from investors that include the CEO of a global content licensing company. The purpose of D'Amelio Brands will be to create “authentic and accessible” products across industries from fashion and beauty to consumer products and lifestyle that leverage the sisters’ fame, the company said.

(Source: Bizwomen, September 12, 2022)

Miley Cyrus Sued for Posting Paparazzi Photo of Herself to Instagram
Miley Cyrus is facing a copyright lawsuit over allegations that she posted an image of herself to social media, filed by the same paparazzo who sued Dua Lipa for the same thing last month. In a complaint filed in Los Angeles federal court, photographer Robert Barbara claimed that Cyrus reposted his 2020 image – a snap of her waving to onlookers as she exited a building – without a license or any sort of permission to do so.

(Source: Billboard, September 12, 2022) [Subscription may be required]

David Bowie Estate to Drop 'Bowie on the Blockchain' NFTs, Sale Receives Backlash From Fans
The David Bowie estate recently announced it is launching a series of non-fungible token (NFT) collectibles called “Bowie on the Blockchain.” Following the official announcement, however, a number of Bowie’s fans chastised the project and called it a pyramid scheme. Bowie’s blockchain collectibles will launch on Opensea on September 13, and proceeds from the sale will go to the global anti-poverty nonprofit Care.

(Source: Bitcoin.com, September 8, 2022)

Sony Music Files for NFT and Metaverse Related Trademarks
Sony Music Entertainment has filed for an NFT and Metaverse related trademark for covering music and artists under the Columbia Records logo. As per the application, the filing covers downloadable audio and video recordings featuring live musical performances authenticated by NFTs.”

(Source: The Crypto Times, September 8, 2022)

NFT Tech Announces Updates to the Elvis Presley Project and Launches New Technology to Revolutionize Legacy Fan Engagement
The Elvis Legacy Council is the governing body that will make key decisions on the future of Elvis’ digital estate, both on the blockchain and in the physical realm. The project will be officially launched under the brand "The Elvis Legacy Council," project highlights include an extremely limited NFT collection, officially licensed digital wearables and collectibles, unique metaverse experiences, exclusive in person Graceland tours, Memphis experiences, and many more!

(Source: Yahoo!, September 7, 2022)

Kobalt Music Group Sold to US-Based Private Equity Firm Francisco Partners
Kobalt has confirmed that private equity company Francisco Partners (FP) is acquiring a majority stake in its business. Per reports, FP’s controlling stake in Kobalt will equate to around 90% of the music company and the buyout of Kobalt was worth approximately USD $750 million.

(Source: Music Business Worldwide, September 7, 2022)

Collegiate Group Licensing: A New Frontier in the NIL Wild West
In the context of name, image and likeness licensing, collegiate group licensing typically involves several individual student athletes pooling their NIL rights into a collective license to be marketed and sold as one. In some cases, colleges themselves permit their intellectual property (such as logos, names and color schemes) to be incorporated into group licenses with student athletes. The result can be a co-branding force multiplier that maximizes the value of each licensee beyond its individual marketability. Further, group licensing aligns the incentives of student athletes and universities by expanding access to NIL opportunities to a wider group of student athletes and by increasing sponsorship and merchandising revenue for college athletic departments.

(Source: JD Supra, September 6, 2022)

Lakers' LeBron James, Rapper Drake Sued for $10M Over Rights to 'Black Ice' Hockey Documentary, Per Report
Los Angeles Lakers star LeBron James, along with rappers Drake and Future, are reportedly being sued by former National Basketball Players Association executive director Billy Hunter for $10 million, according to Carl Campanile and Priscilla DeGregory of the New York Post. Hunter is allegedly seeking a portion of the profits from the documentary "Black Ice," which was released in 2014.

(Source: CBS, September 6, 2022)

A Lawsuit Over Nirvana's 'Nevermind' Naked Baby Album Cover Is Dismissed (Again)
Teenage angst pays off well, as Nirvana's Kurt Cobain sang. But a lawsuit from a man who appeared as a naked baby on the band's landmark Nevermind album still isn't paying off: a federal judge has once again dismissed the lawsuit.

(Source: NPR, September 5, 2022)

Federal Judge Takes Aim at Legal Process for Targeting Counterfeit Merchandisers
The rebound in concert tours and ticket revenues as 2022 has unfolded gives the live events industry hope for a strong 2023, too. For many tours, though, it’s income from merchandise that makes the tour profitable. Thus, the rise in the number of artists touring also means a parallel resurgence in the activities of counterfeit-merchandise sellers and renewed efforts by the industry to battle its long-time problem with the sale of counterfeit merchandise near event venues. The Trademark Counterfeiting Act (TCA) of 1984 is a key federal provision for seeking to stem counterfeiting activity, by providing criminal consequences under 18 U.S.C. §2320, treble damages and disgorgement of counterfeiter profits under 15 U.S.C. §1117, and a procedure for trademark owners to obtain orders for ex parte seizures of illicit goods under 15 U.S.C. §1116.

(Source: Law Journal Newsletters, September 1, 2022)

Esports Industry Labor, Employment Law Concerns
One of the issues facing the esports industry is the classification of professional players as employees versus independent contractors. This issue is of particular concern for companies operating competitive esports teams and/or using the services of content creators.

(Source: Law Journal Newsletters, September 1, 2022)

Brian Wilson’s Ex-Wife Wins Remand Back to State Court of Her Claim to Share of Revenues From Sale of His Song Catalog
The U.S. District Court for the Central District of California decided that federal copyright law didn’t preempt a claim by Marilyn Wilson Rutherford, the former wife of Beach Boys icon Brian Wilson, to a share — under a 1981 judgment dissolving her marriage with Brian — of his income from the December 2021 sale of his song rights to Universal Music Publishing Group (UMPG). Wilson v. Rutherford, 2:22-cv-01982. The 1981 divorce judgment, issued by the L.A. Superior Court’s Family Law division, stipulated that 170 Beach Boys songs Brian wrote during the couple’s marriage were marital community property. The judgment then gave Marilyn a 50% share of revenues the songs generated and Brian the exclusive right “to administer and exploit all rights” in the compositions. Brian sold the songs to UMPG after recapturing the copyrights under the assignment termination provisions of Sec. 304(c) of the U.S. Copyright Act.

(Source: Law Journal Newsletter, September 1, 2022)

Hollywood’s Insistence on New Draconian Copyright Rules Is Not About Protecting Artists
Stop us if you’ve heard these: piracy is driving artists out of business. The reason they are starving is because no one pays for things, just illegally downloads them. You wouldn’t steal a car. These arguments are old and being dragged back out to get support for rules that would strangle online expression. And they are, as ever, about Hollywood wanting to control creativity and not protecting artists.

(Source: Electronic Frontier Foundation, September 1, 2022)

The Monkees' Micky Dolenz Is Suing the FBI to Force Them to Hand Over Files They Kept on the Band During the J. Edgar Hoover Era
The Monkees' sole surviving member Micky Dolenz is suing the FBI to force them to hand over files they kept on the band. A document on the pop-rock band shows a spy attended a performance on their inaugural 1967 tour and reported that they were trying to spread an anti-US message to the audience. The informant reported back: 'During the concert, subliminal messages were depicted on the screen which, in the opinion of [informant's name redacted], constituted "left wing intervention of a political nature."

(Source: Daily Mail, August 31, 2022)

Publishers, Streamers Reach Deal for Highest Streaming Royalty Rate Ever: Here’s How It Works
Songwriter and publisher U.S. mechanical streaming royalty rates are going up — slowly — to a headline rate of 15.35% of total revenue from 2023-2027. That’s the big news out of Wednesday’s (Aug. 31) joint announcement on the “Phonorecords IV” settlement from the National Music Publishers’ Association (NMPA), the Nashville Songwriters Associations International and the Digital Media Association (DiMA). But how long will it take to get there and at what pace? What are the other conditions? Billboard now has more more key details about the deal.

(Source: Billboard, August 31, 2022) [Subscription may be required]

Prince Estate Shuts Down ‘Purple Rain’ Energy Drink Brand
A tribunal at the U.S. Patent and Trademark Office ruled last week that the company behind Bang Energy drinks could not register “Purple Rain” as a trademark, siding with arguments from Prince’s heirs that the term “uniquely and unmistakably” points to the legendary rocker.

(Source: Billboard, August 31, 2022) [Subscription may be required]

James Van Der Beek Sues SiriusXM for Breach of Contract Over $700K Podcast Deal
Former Dawson’s Creek star James Van Der Beek has sued SiriusXM and Stitcher for breach of contract over a podcast agreement allegedly worth at least $700,000. According to the suit, filed in Los Angeles on Aug. 26, Van Der Beek reached an agreement over email with executives from the audio giant to host 40 podcast episodes, to be released weekly, in exchange for a $700,000 minimum guarantee and a 50 percent cut of the net ad revenue. Other financial terms outlined by the lawsuit include a $153,000 production budget and $50,000 marketing budget, both recouped against revenue.

(Source: The Hollywood Reporter, August 30, 2022)

‘Inventing Anna’ Ignites Defamation Suit Against Netflix
Netflix’s propensity for docudramas is landing the streamer in hot water, this time courtesy of Rachel Williams — an associate of New York City con artist Anna Sorokin. She sued the company on Monday for defamation over her portrayal in Inventing Anna.

(Source: The Hollywood Reporter, August 29, 2022)

iHeartMedia Plans to Host Metaverse Concerts in ‘Fortnite’ Virtual World (Exclusive)
iHeartMedia has launched its first virtual world on Fortnite, called iHeartLand, as the company extends its marketing investments into the metaverse and toward younger audiences. iHeart, which brought in $954 million in revenue during the second quarter, first announced plans in January to launch its own branded virtual world on platforms like Roblox as part of the radio giant’s larger Web3 strategy. Wednesday’s launch of iHeartLand in Fortnite marks the first unveiling of iHeartMedia’s virtual world and will serve as the testing ground for future iterations of iHeartLand on other world-building games.

(Source: The Hollywood Reporter, August 29, 2022)

Amazon, DirecTV Strike Deal to Bring Thursday Night Football to Bars and Restaurants
This season, for the first time, a streaming service will have exclusive rights to an NFL football package, when Amazon launches Thursday Night Football on its Prime Video service. But with streaming still not quite developed for commercial use, the tech giant and the satellite TV company DirecTV have struck a deal to bring its Thursday night broadcasts to bars, restaurants and other out-of-home venues this season.

(Source: The Hollywood Reporter, August 23, 2022)

UFC Sues Documentary Production Team in Copyright Dispute
At a time when The Last Dance, Athlete A, Untold: The Girlfriend Who Didn’t Exist and other popular documentaries prominently feature copyrighted audiovisuals of athletes, the UFC is suing the producers of Bisping: The Michael Bisping Story over unauthorized video use. The case could set important precedent for leagues and the documentarians who seek their footage.

(Source: Yahoo! Sports, August 23, 2022)

California Rap Lyrics Bill Clears Final Vote, Heads to Governor for Signature
Lawmakers in California gave final approval to legislation that would restrict when prosecutors can cite rap lyrics as evidence, a first-of-its-kind legislative victory against a practice that critics say can sway juries by playing to racial bias.

(Source: Billboard, August 22, 2022) [Subscription may be required]

St. John Bosco Football Team Signs Up for Unprecedented Team-Wide NIL Deal
St. John Bosco’s football team is about to go where no high school team has gone — a team-wide name, image and likeness deal that will pay compensation to anyone who wants to participate, according to an announcement by KONGiQ Sports Performance on Monday. It is believed to be the first for a high school.

(Source: Los Angeles Times, August 22, 2022)

Here’s Why Mariah Carey Is Facing a Legal Battle Over ‘Queen of Christmas’ Nickname
Mariah Carey is in a legal showdown over her efforts to secure a trademark registration for name “Queen of Christmas,” sparked by another singer who says she’s used the name for years. Likely playing on her perennial smash hit “All I Want For Christmas Is You,” Carey’s company (Lotion LLC) applied last year at the federal trademark office to register the “Queen” name as an exclusive brand name for a variety of different goods and services, ranging from music to alcohol to fragrances.

(Source: Billboard, August 16, 2022) [Subscription may be required]

College Football's Most Unique NIL Deals In 2022
College athletes across the nation have profited off the new era of collegiate sports, with NIL taking over as the biggest attraction to those staying in school. Blue-chip prospects and Heisman Trophy candidates have been swarmed with constant promotional requests, but many players seem to have found their niche in the NIL business. Whether it's million-dollar contracts, luxury cars, or an overabundance of marketing opportunities, athletes across the nation have taken complete advantage of the new norm.

(Source: Bleacher Report, August 16, 2022)

AEG, Live Nation Settle Lawsuit Over Rival ‘Coachella’ Event
Coachella owner Goldenvoice has reached a settlement to end a lawsuit the AEG unit filed against Live Nation over a concert in Southern California that used “Coachella” in its name. Goldenvoice sued last year over a New Year’s Eve event called “Coachella Day One 22,” and quickly won a court order barring Live Nation’s Ticketmaster from selling tickets under that name. The event went down as planned under the rebranded “Day One 22.”

(Source: Billboard, August 15, 2022) [Subscription may be required]

Still in Jail, Rapper Young Thug Sued Over Canceled Atlanta Show
Unable to perform at State Farm Arena because he’s still in jail without bond, Atlanta rapper Young Thug is being sued for $150,000 over a canceled concert. The chart-topping musician, who is the subject of a sweeping criminal indictment alleging he’s the leader of a violent street gang, had his June 18 concert canceled after a Fulton County judge ruled he would remain in jail.

(Source: Atlanta Journal Constitution, August 15, 2022)

Warner Bros. to Release MGM Movies Overseas, Excluding Next Bond Pic
MGM has tapped Warner Bros. to be its new international partner, giving Warners a shot at having a piece of the James Bond franchise. One caveat, the arrangement doesn’t include the next James Bond film.

(Source: The Hollywood Reporter, August 14, 2022)

Nicki Minaj 'Barbie-Que' Chip Maker Hit With Mattel Trademark Lawsuit
Mattel Inc sued the maker of Rap Snacks in Los Angeles federal court Thursday, alleging its Nicki Minaj-branded "Barbie-Que Honey Truffle" potato chips violate Mattel's trademark rights in the famous Barbie doll. Mattel said it never gave Rap Snacks Inc permission to use its trademarks. The toy maker asked the court for an order blocking Rap Snacks from using the "Barbie" name, as well as money damages including profits from "Barbie-Que" sales.

(Source: Reuters, August 12, 2022)

Hipgnosis Moves Into Asset-Backed Securitization With $222 Million Bond Offering — Powered by Catalog Royalties From Justin Timberlake, Leonard Cohen, Others
HSM’s arrival into the music-bond space – where the likes of KKR and Northleaf Capital Partners have debuted in recent months – came to light in a formal release and report from the Kroll Bond Rating Agency (KBRA). Hipgnosis Song Management, it should be clarified at the outset, is the Blackstone-powered “investment advisor” of the Hipgnosis Songs Fund, or the publicly traded (LON: SONG) entity that’s purchased all manner of music IP during the past several years.

(Source: Digital Music News, August 11, 2022)

Michael Jackson’s Estate and Sony Music Settle Lawsuit Over Alleged Fake Songs
A lawsuit against the Michael Jackson estate and Sony Music, that alleged the label had released songs by a Jackson impersonator, has been settled after eight years.

(Source: Digital Music News, August 11, 2022)

Bob Dylan’s Lawyers in Sex Abuse Case Demand Punishment for Attorneys Who Filed Lawsuit
Dylan's legal team is citing "brazen" misconduct in the recently-dropped case, in which an unnamed woman accused the singer of sexually molesting her as a child.

(Source: Billboard, August 11, 2022) [Subscription may be required]

17 Celebrities Just Got Warning Letters About Shilling NFTs
Celebrities have been quick to jump into NFTs, but their motivations for doing so may be confusing to fans. Truth in Advertising, a consumer watchdog group, just sent letters to 17 celebrities, including Jimmy Fallon and Gwyneth Paltrow, reminding them that not disclosing material connections (i.e., “Do you make money from this?”) when posting about something on social media violates Federal Trade Commission guidelines.

(Source: Buzzfeed News, August 8, 2022)

Shaquille O’Neal’s Brand Manager Opposes Trademark App From His Son for His Own Name
NBA legend Shaquille O’Neal’s Authentic Brands Group has halted his youngest son Shaqir from trademarking his own name and likeness. The 19-year-old, a basketball player for the Texas Southern University Tigers, aspires to take his first steps into business ventures like his father, however has been blocked by dad’s company.

(Source: Tech Dirt, August 5, 2022)

"A true artist is not one who is inspired, but one who inspires others. "

Salvador Dali