Industry Liabilities

The entertainment business can run into many legal liabilities that a company can run into. Whether it is copyright infringement, intellectual property or infringement of a company’s trademark it is important to do your research and make certain that there are no violations of use of a company’s name, trademark, or any form of art, music production that an entertainment business my have. The live music industry can come across many legal issues and controversies that need to be resolved.

A billboard article named, “Lawsuit Accusing SFX Chairman and CEO Robert Sillerman of Cutting Out Early Partners to Move Ahead” describes one recent lawsuit with one of the largest Electronic Dance Music production companies, SFX Entertainment, there was an issue whether EDM promoter Roger Sillerman took the ideas of three partners, Paolo Moreno and manager at Disco Donnie Presents, artist manager Lawrence Vavra and Moreno’s brother Gabriel Moreno., in the case Moreno v. SFX Entertainment Inc., 14-0880, U.S. District Court, Central District of California (Los Angeles).They claim they agreed to a joint partnership agreement with Sillerman where they helped with facilitating the principal assets. They are claim that Sillerman did not pay them any equity of the new company. They claim they never received any stakes in the company’s earnings after they helped with the idea and work of SFX Entertainment. The co-founders of SFX claim they did not receive any shares they were promised to get. According to them, Sillerman cheated them in $100 million revenue. They won the lawsuit on July 9^th after the judge denies Sillerman’s request for summary judgment. Using others ideas, strategies and connections are protected by copyright, intellectual property and trademark law. In my opinion, if Sillerman did steal their ideas there should be a high amount of damages that should be paid to the co-founders.  One cannot merely steal other’s ideas and creating without first getting permission and if so they deserve a portion of the equity made on the project.

In the article “The Meekrat Minefield: Legal Issues with Live- Streaming Apps,”, it describes another legal controversy in the live music industry. The article describes that live streaming can have potential legal issues. Meerkat, Periscope and YouNow are live streaming apps that stream live and broadcasts live videos. There are public performance rights that come into play when live streaming. Broadcast rights and record labels performance rights can be affected, for example when a DJ prerecords a track at a show. In order to properly stream without infringing any copyright proper licensing is required with certain agencies like BMI, SESAC and ASCAP. The Digital Millennial Copyrights Act protects live streaming videos. According to the article, streaming services will be clear if when the user responds to right owners takedown requests and don’t have the “constructive” knowledge that the have committed an infringement. However, it seems as the companies can use the fair use defense. Any company live streaming videos without the permission of the performance, recording or any type of broadcast produced. It is a tricky subject in the matter, because although you would want to get permission, it can also be a process and may take longer to get the permission before the broadcast goes on.

Another controversy in the live music scene is whether small venues are allowed to out on free live music without having a license. In the article, “Government to backtrack on controversial live music laws,” it talks about how the government respond to criticism that live pubs and bar can put free live music without obtaining a license. The Licensing Ace came into affect in 2003, when venues with a capacity of 100 people or under are able to put live music with out having a license. So every venue must go through a licensing process under this act. Venue owners are complaining that the laws are way to strict for and is damaging the music scene. I agree. I don’t think that the laws should be so strict for musicians and artist to be able to perform at a venue. Smaller venues should be exempt and the larger venues should be licensed. The government proposed a “two-bar” exemption, allowing any amplified music by two musicians play in small venues. If the venues are problematic then there may a reason why it would be important to provide licensing. However, if it’s a small quiet venue where people can come an express their music than that shouldn’t be any issues.