American Needle vs. The NFL; Sherman Act, Schmerman Act

January 12th, 2010

Soon the U.S. Supreme Court will hear an important anti-trust case to decide to what extent the NFL can conduct itself as a single entity in negotiating certain agreements or if it must operate as 32 individual entities.

I don’t have a problem with the Sherman Anti-Trust act. It prevents companies from doing things like charging a penny for a gallon of milk in a certain territory, driving out all competitors, then raising the price of milk to a million dollars. Muwhahahahaha!!!!!

However, the Act has also made me lose interest in professional sports. You can interpret the Act to prevent Ron Cey, Davy Lopes, Steve Garvey and Steve Sax from being forced to stay in the same infield together forever all you want, but it still made baseball a lot worse for me at least.

It helped make millionaire ball players into potential billionaires, and there are a lot of lower tier ball players that went from lower middle class to millionaire; but I’m more concerned about the irritating sight of Garvey in a Padre uniform, or Eric Dickerson playing for the Colts.

There are decent arguments on both sides of this issue and the New Orleans Saints QB Drew Brees lays out the NFL player’s view in Sunday’s Washington Post. His points fall flat with me however. I’m not concerned about whether a hat maker gets to make NFL hats or if they have to make hats for someone else. I fail to see how I benefit if NFL players get to drive up their salaries through this kind of competition and play for different teams every couple years if they choose.

Free and unfettered competition is always a compelling argument but it hasn’t made these sports better. I know the arguments. I took all the anti-trust classes in law school, somehow I got published in the field, but the truth is that the Act’s application to sports has made sports worse.

What has the fan gained from all this free agency? Spoiled players with guns, bad tattoos, bling, steroids, and high ticket prices?” Is this what they we’re fighting for? I’m glad the court is taking a second look at this. My free advice to the players is that before they gain sympathy by griping about the Sherman Act, they will need to clean up their own act. oooooh. Sick burn!

Who Would Do This To Gwen Stefani?

December 18th, 2009

Who’s to blame when Gwen Stefani, the adorable Orange County rock princess representing all that is cute with the world, is forced to sing songs (in public) about having lesbian affairs with divorcees?

Evidently it’s her own attorneys.

But according to a complaint filed in the Superior Court of California by the band’s litigation attorneys earlier this month, that’s what defendant Activision is guilty of by allegedly tricking the band into signing away rights to their likenesses to be included in one of the most popular video games of all time, Rock Band, where players can play along with fake instruments to fake yet ostensibly authorized versions of their favorite stars in a virtual rock and roll fantasy world.

The band was paid a negotiated fee. The band then showed up to have their images recorded for the motion capture process. The band later approved those images pursuant to the terms of the agreement.

Some time in September, someone in the band figured out that their characters could be manipulated to have bassist Tony Kanal sing the lead to “I’m Just A Girl” in a girls voice wearing a dress, AND Gwen could be manipulated to sing, among other things, these tasty lyrics from the Rolling Stones:

I laid a divorcee in New York City.

l had to put up some kind of a fight,

The lady then she covered me with roses.

She blew my nose and then she blew my mind.

By this time, According to Activision, it was too late to have the feature “locked” (which is possible, and some bands’ lawyers have evidently obtained this according to Activision) so the band decided to sue for injunctive relief to have the games taken off the awaiting Christmas shelves.

So now we have a problem. It would be incredibly expensive for Activision to recall all these games and all their efforts to get this thing on the shelves in time for Christmas would be for naught. So they dug their heels in.

Their defense is something like this: “No Doubt’s Lawyer is an is an idiot. “

Harsh, but the defense may actually work. I’ve poured over this “simple” 3 page license agreement and there is no smoking gun. The agreement does not specifically say what the band needs it to say.

Was there a meeting of the minds on this deal? Every contract requires a meeting of the minds so even if No Doubt’s attorneys were tricked into signing away more than they bargained for, that could nullify the agreement.

However, these are sophisticated parties. The members of No Doubt are not the kind of struggling musicians that call my show to complain about how they’re being taken advantage of by the man. No Doubt supposedly can afford the best representation money can buy.  If this “unlockable” feature was in 40 million units that had been on the market beginning in 2005, you have to lend at least a little credence to Activision’s “Everybody Knows” defense. So how did this happen?

Evidently No Doubt’s lawyers didn’t feel like they needed to know what a child of 7 knows about these games, that part of the fun is that when you’ve achieved a certain skill level, you can manipulate characters and make them wear crazy stuff and do crazy things.

Why do you think your kid is so mesmerized by their console? They want to get to this point. Activision says everybody knows this. The band shouldn’t have to know, but Activision’s argument is that their lawyers should have known, as they state in their response while requesting to have the case removed to Federal Court as more of a “copyright case.”

“What this case boils down to is not a violation of the right of publicity, but rather No Doubt’s failure to request that their grant of rights to Activision be limited to use of their likenesses only in connection with No Doubt songs.”

No Doubt, in their complaint says the agreement is clear, it limits the band to performing ONLY three songs. However it looks to me like a decent argument can be made that they approved their images and they licensed 3 songs for inclusion in the game. That’s it. The language that they refer to as limiting their participation seems to be included to prevent Activision from going overboard in areas like advertising and promotion of the game.

Yes, there is language that talks about the band as individuals but to me it reads like that was put in their to allow No Doubt as individuals to appear in other video games possibly. Does a band’s approval right to their image cover every outfit an interactive video game my have them wear? Or should it cover every voice that may be put in the bass players throat? Since the document was silent, and the defense is decent, this will all be for the jury to decide.

After reading the Band’s complaint, it was clear to me that the band’s attorneys had never played an interactive video game like Band Hero, and they possibly had never met anyone that had played one either.

Does this excuse Activision? I say no. Although a child of 7 could have drafted a better document for No Doubt than this thing, a child of 7 would also know that this was sleazy without affirmative approval.  The defense is not “No Doubt’s lawyers knew all about this.” It is “No Doubt should have known, they’re supposedly a sophisticated party. This is what we do. We don’t have time, nor a duty, to spell it out to even unsophisticated parties but especially not to these guys.”

Congratulations Activision, you will probably win.  You are kind of gross, but you will win. You may have to cough up some more dough but there will be no injunction. But come on!!! Gwen Stefani can sing death metal and you thought that was going to fly?  In the same way that No Dobut’s attorneys should have known, Activisions attorneys should have known that deals like this will end up costing as much in litigation as they would gain if they were up front about this stuff.

Video games have enough enemies in conservative elements of our society, why would you want to anger the artists as well. After that, who’s left?
This is why contracts are too long for lay people to understand. Their girth is a testimony to how many people have been swindled over the years. You can bet that No Doubt’s next game agreement will be longer than 3 pages. Great; the terrorists win again!

How can No Doubt win? They’ve got to find the emails through the discovery process that show the game developers having the time of their lives making Gwen do illicit things. At some point someone must have said to someone “hey, don’t tell anyone about this because if the band’s management finds out about this we will have to lock their characters.”

If they can’t find these emails, they need someone to admit that they were hiding this. If they can’t, and Activision can produce proof that other lawyers have negotiated to have their characters locked, the band’s case is in serious trouble.

Should it be removed to Federal Court as primarily a copyright case vs. a state rights of publicity case?  I don’t think so, but if I were Activision I would not want this thing going in front of an Orange County jury. What they did may have been technically legal but the band is respected enough to sway a jury who will sympathize with the musicians trying to protect their hard earned and valuable image.

If one of No Doubt’s attorneys calls my show I will provide them with the following free sentence for his next deal of this nature:

GAME PLAYERS WILL ONLY BE ALLOWED TO EXPERIENCE NO DOUBT PERFORMING NO DOUBT RECORDS EXPRESSLY APPROVED BY THE BAND. UNDER NO CIRCUMSTANCES, REGARDLESS OF PLAYER ABILITY, WILL THE ACTIVISION TECHNOLOGY ALLOW PLAYERS TO MANIPULATE OR “UNLOCK” NO DOUBT BAND MEMBERS INTO INDIVIDUAL PERFORMING SCENARIOS AND / OR PERFORM MATERIAL OTHER THAN WHAT IS EXPRESSLY APPROVED HEREIN.

That took all of 30 seconds to come up with. Here’s one more bit of free advice, also worth every penny: If you’re going to make a video game deal, spend some time with a 7 year old. They’re amazing.

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September 21st, 2009

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Kanye West Vs. Joe Wilson

September 14th, 2009

Some listeners to my Barely Legal Radio Program are asking me if Taylor Swift has a defamation case against Kanye West for his recent actions against her at the VMA awards, and if Barack Obama has a defamation case against Joe Wilson. Although it would be unimaginable to see her pursue this, Swift actually has a couple decent causes of action against West.

In a suit for defamation you need damages. Provable damages in this case would center on the value of the airtime Swift was deprived of to speak about her recordings. Expert witnesses would testify as to the “bump” typically witnessed after an acceptance speech in such a valuable forum. Arguably, West deprived Swift of this sales bump.

West also defamed Swift when he announced to the world, in the most damaging forum possible, that Beyonce made “one of the best videos of all time” so obviously Swift was on stage accepting an award that she didn’t deserve– more damages.

And what of Joe Wilson’s somewhat barbaric shouting, also in the most damaging forum possible, that the President was lying as he spoke to Congress and the American people? If true, this was pure defamation and created quantifiable damages to a politician whose ability to govern and raise funds for re-election depend on his credibility.

Public figure exceptions (which require “actual malice”) and governmental immunities aside, the interesting difference between these two cases is the ability to mount a viable defense. Truth is the best defense in any defamation case. If the defaming speech is true, it is protected by the 1st Amendment to the Constitution guaranteeing free speech.

Wilson, and many pundits,  have probably already gone far enough to establish that a reasonable person could infer that the PTaylor Swift beats Kanye in the awards game, and in Court.resident was not telling the truth when he asserted that illegal aliens would not be covered under the government’s proposed healthcare plan. The fact that Wilson and his supporters tried to add language to the bills specifically prohibiting coverage for illegal aliens and it was removed by their opponents, and the fact that non-citizens have to be covered in some ways by the plan, at least in emergency rooms, is enough to establish a reasonable basis for Wilson’s belief that the President was indeed lying.  So the apparent truth to Wilson’s beliefs is a good faith defense to being punished for stating them in public.

On the other hand, Kanye’s attempt to prove truth as a defense to his defamation troubles would be impossible. He would have to spend all his energy trying to argue for minimal damages.

What will actually happen? Wilson’s outburst has already put the spotlight on this issue for his supporters so it was an effective, albeit rude. Kanye will return to next year’s VMAs to a mindless standing ovation as a prodigal son, and security will be stepped up a bit on the side of the stage.

But let us consider the forum of a Presidential address to Congress. Every time the President says anything of significance, true or not, his supporters are allowed to go nuts and violate decorum. For Wilson and his colleagues to just sit there and not point out an opposing sentiment representing at least ½ the country, every time, may be too much to ask.

Is it too much to ask a hip-hop “musician” formed by the juvenile arrogance of a genre with almost zero positive contributions to popular culture to resist the easy prey of a humble and traditionally wholesome artist like Taylor Swift.  Actually it is too much to ask, way too much.

Let me know what you think and don’t forget the Twitter. I know a lot of you like hip hop. That’s great but it’s pretty dumb so a lot of people like me like to point that out every now and then.

New Toll Free Number 877-LAW-4777

July 24th, 2009

This is a new toll free number to call Barely Legal Radio. You can use it during the show, and during the week if you want legal questions answered, for free, all week long. It’s best to email me the questions and we’ll set up a time to have you either call during the broadcast or during one of our many “recording sessions” when we record calls for later broadcasts. Thanks for everything. Keep the calls, emails, and Tweets coming!

On this Friday’s show I would like to know what you think about AEG the concert promoter being blamed for the cities problems in connection with the Michael Jackson funeral.

My opinion is that any attacks you hear on the concert promoter only amount to ignorant grandstanding by corrupt politicians looking to cover their buts. They embarrass me. To me, it looks like AEG came up with an ingenious system to keep away unwanted attendees, and the city ordered 3,000 cops. The city is dumb and corrupt, AEG is smart and honest, honest in the sense that they are here to make a profit for their share holders. It’s their duty. What do you think?

Email me your legal questions now!

May 31st, 2009

I am now encouraging you to email me all your legal questions to info@barelylegalradio.com.  I will get back to you with a time that we can record the answer for playback on the next Friday show. This helps me get better questions, and more questions for the show so don’t be shy, ask anything. It doesn’t necessarily have to be a legal question. It can be a comment on the entertainment industry itself. Do it.  It’s free and worth every penny. 

Don’t Be A Mustache Twirler

May 22nd, 2009

Los Angeles Superior Court Judge Ann I. Jones has ruled in a very important case involving what happens if you don’t vigorously pursue your royalty claims against companies that you feel owe you money. Her decision says basically that the Jackson Sisters (a 70s disco group) waited too long to bring allegations within their lawsuit filed on Dec. 21, 2007. Jones said a former lawyer for the women, Albert Davis, knew as late as Dec. 19, 2003 that his clients had grounds to sue UMG, yet the complaint was not filed until more than four years later.”It you haven’t sued them, they have no obligation to you,” Jones said. For more click here.


This doesn’t mean that the members of the  UMG were twirling their mustaches as they refused to pay out royalties to deserving artists. They claimed they had a good faith dispute as to whether this money was owed in the first place. After time, equity demands that people (and even large corporations) be allowed to move forward on their good faith beliefs so that they can engage in predictable business without worrying about who’s lying in wait to get them. If the Disco Sisters knew that they were entitled to royalties but waited until it was “worth it” to sue several years later the court sees that as unfair on it’s face. It’s called laches or “sitting on your rights.”

I went through the same exact issues with former members of my band a few years ago. In 1989 two ex-members entered into an agreement that traded their future royalties for immediate consideration of what we thought was of much greater value than the future royalties. Over time I (with the help of the current members) was able to increase the value of these catalog songs substantially. After 13 years of steady growth,  the ex-members decided to sue on the grounds that the deal we made in 1989 was invalid, or perhaps didn’t take place at all according to their testimony. After 13 years, however, the law will not let you suddenly claim that you want a share of something you should have claimed 13 years prior. It’s called “pouncing.” You lie in wait, and when you think it’s worth it, you pounce on your prey. The idea is that people would do more business and invest more in their property if they knew it was not vulnerable to ancient disputes.

The ex-band members suit didn’t go anywhere because 13 years was ample evidence that the deal did exist and even if it didn’t, it had no merit based on the laches defense. However, for me there was more to consider. There was truth to the fact that when they agreed to the terms, none of us would have dreamed that the material would ever be worth more than the two or three hundred dollars a year it was generating at the time.  Given that scenario, I offered to include them in future royalty earnings and today they all share equally in any material with which they were connected. 

This Superior Court decision  in the Jackson Sisters case upholds the legal notion that pouncing is unfair even if you only waited 4 years, a far cry from the 13 years in our scenario but my advice to UMG now that they have had a victorious lawsuit that preserves this legal defense for the future and vindicates them for their seemingly harsh position on this, they should take the high road and see to it that the Disco Sisters are cut in on some future royalties so they can save face and carry on without bitterness, which is unhealthy. 

Even though I would have prevailed in court easily there is arguably more satisfaction in taking an opportunity to end this bitterness which is especially strong with people remotely connected to a high profile part of the entertainment business. They are constantly asked if they are “getting paid” for their previous work. If they have to continually explain the concept of laches every time they are asked about it by friends and relatives, sooner or later they are going to explode all over you. Sometimes it’s more profitable to be a fence mender than a mustache twirler. 

Woody Allen Edges Closer To Vindication

May 11th, 2009

After a Judge ruled that Woody Allen will not have to justify why he finds being an involuntary model for American Apparel distasteful, AA decided to change their strategy in the ongoing litigation from the extortion mentioned in my last blog to a “fair use” argument. If you are a regular listener to Barely Legal you will know that this is not a fair use case and their argument that since Woody Allen has been embattled by the media, and the owner of AA has been embattled by the media, it is fair use to use Woody Allen’s picture to endorse their products is a terrible one. But at least it’s not extortion any more. Extortion didn’t work, so they are going with terrible legal arguments.

When their done writing Allen a check for 10 million plus attorney’s fees and court costs, they should fire the lawyer who is causing this p.r. nightmare for them. Do you know anyone not on Woody Allen’s side on this? What were they thinking?

American Apparel Clothing Company: Legally Lame.

April 16th, 2009


DISGRACEFUL AMERICAN APPAREL DESERVES A BOYCOTT
I hope you are following this incredible legal story because it is exactly what my radio program is all about. Woody Allen’s likeness was used without permission by American Apparral to sell clothes. This is a bold violation of his right to publicity. He has a right to determine when and where his likeness will be used for commercial purposes. Constitutionally, commercial speech is afforded very little protection, so there is no free speech issue here on which American Apparel can rely.

Instead, American Apparel has taken the sleaziest most reprehensible route I could imagine. They are trying to smear the person’s image they stole to extort the victim into agreeing to less then they would have to pay if they followed the law in the first place. This is an outrage. This has the same effect on justice that going after a rape victim by saying she was “asking for it” does. It is a “travesty of a mockery of a sham” so to speak. American Apparel agrees that they made a mistake and must pay. Woody Allen has said that in this case his image is worth $10,000,000.

I believe that Woody Allen would have turned down American Apparel if they offered him ten or even twenty million for an out of context photo mocking a religious figure used to hock “basics” but he had to come up with a number so he did. So now, American Apparel is dragging Woody Allen’s name through the mud in the public arena to demonstrate that he is a despicable human who would not be worth $10,000,000. This is extortion. If Woody Allen doesn’t reduce his price for doing a print ad for them after the fact, he is ruined. It’s his choice.

The lawyer behind this is named Stuart Slotnick and he should be ashamed of being associated with this kind of black mail. His firm is demanding private documents in connection with Allen’s personal life to dredge up old scandal and create new ones. Anyone reprinting these scandals while covering these stories is adding to the destruction of a man in an effort to deny him his day in court.

How hard would it be for Mr. Slotnick and American Apparel owner Dov Charney to negotiate with the man they stole from and not to sink to this new low? Most human beings would say that ruining someone’s reputation that they already stole from was crossing the line. Human beings would apologize and do the best they could to get out of the jam.

Stuart Slotnick, Dov Charney, and American Apparrel, the largest clothing manufacturer in America, are acting disgraceful and they should be vilified for it. Dov Charney has been a victim of this kind of extortion himself in his flamboyant past but evidently learned nothing from it. I’ve never called for a boycott before, but here I think these people need to be reminded that ruining someone’s life to save some money on a mistake you made is beyond the pale, and there is a price.

Legally, it’s a sad argument as well. The issue for the court is whether it is reasonable to believe that $10,000,000 is the lowest number Allen would accept for this kind of work. How does Allen value his image? That is the issue. If any high profile personality has ever been paid $10,000,000 to do print work, it is reasonable for Allen to request that amount and it should be put in front of a jury. American Apparel has no right to cherry pick (and steel from) endorsees based on their fame and ability to extort them if they make trouble.

I’m on tape this Friday April 17, 2009 as the Vandals are playing the Groezrock Festival in Belgium, but leave a comment about what you think and we’ll discuss it next week on the show.

Attn copyright law Geeks! re: unpublished pre-1972 sound recordings

April 3rd, 2009

This is for geeks only. did you know that the Federal Copyright Law doesn’t even apply to sound recordings created before 1972? Fascinating I know. Read this executive summary about the risk of liability when making copies of historical recordings and you are officially on the Copyright Geek Squad.

Don’t forget to follow my nonsense on Twitter.