Court Partially Voids Deal Between Prince's Estate and Universal Music

In re: The Estate of Prince Rogers Nelson, Deceased, No. 10-PR-16 in the Carver County District Court June 2017.

A Minnesota judge voided a portion of Universal Music Group’s $31 million deal with Prince’s estate, ordering the estate to refund Universal Music Group’s advanced payment.

After determining that the exclusive licensing agreement made back in January included rights that were already guaranteed to Warner Bros. through previous agreements, Prince’s estate asked the court to rescind the agreement so they could ensure no overlapping occurred. The court determined that rescinding the agreement was in everyone’s best interest as opposed to long and expensive litigation. 
 

Nail and Mail - The Bronx

Warner Bros. Records Inc. v. Berry, No. 07 Civ. 1092-HB, 4/15/08 N.Y.L.J. "Decision of Interest" (S.D.N.Y. decided Apr. 9, 2008).

The court adopted Magistrate Judge's recommendation to deny Plaintiff's default judgment application and dismissed the case.

Plaintiff's alleged that Defendant used KaZaA to download, distribute and make available for distribution the copyrighted recordings of certain artists in violation of the Copyright Act. Over a year before filing the complaint, Plaintiffs served AOL (an ISP), which identified Defendant as the person responsible for the IP address that was using KaZaA. AOL provided Plaintiff's with an address for Defendant in the Bronx, NY. Plaintiffs then hired a process server, whose attempts at service were "unsuccessful"; thereafter, the process server affixed one copy on the property in the Bronx. and depositing a copy of the summons in a first class post paid envelope addressed to the same address.

However, the Court found that service on Defendant was defective and therefore dismissed the complaint. "Here, service was defective under the 'nail and mail' method [CPLR 308(4)] because Plaintiffs' process server both affixed and mailed the summons to Defendant's last known residence."

Though the mailing component of service by "affixing and mailing" may be to the defendant's last known residence, "the 'affixing' component must be to the door of the defendant's actual place of business, dwelling place or usual place of abode, and not to the defendant's last known residence. To blur the distinction between 'last known residence' and 'dwelling place' 'would diminish the likelihood that actual notice will be received by potential defendants.'"

However, the Court did not adopt the Magistrate Judge's recommendation that Plaintiffs be ordered to show cause they they did not violate FRCP 11(b). The Court found that "while Plaintiffs' lawyers should be faulted for failing to keep closer tabs on their process server and for failing to better supervise their paralegal, their actions do not rise to the level of a Rule 11(b) violation. Plaintiffs' lawyers might have been sloppy in their attempts to serve Defendant, but giving them as officers of the Court the benefit of the doubt, all their representations to this Court were...nor for the improper purpose of unnecessary delay."

A Flurry of John Doe Suits

The past two days saw a "flurry" of law suits filed by major labels in Federal District Court: no less than 17 copyright infringement cases were filed against John Doe defendants and IP-addresses by, collectively -- Zomba, Atlantic, Capitol, Sony BMG, MoTown, Warner Bros. Records, Elektra, UMG, Maverick, and Arista.

Additionally, several suits were filed against actual named defendants - whom were identified by 3rd party investigators for using P2P networks at the defendant's IP-address. (e.g. case no
4:07-cv-04525)

Notably, many of the cases were filed in the Eastern District of Pennsylvania, with the labels (for the most part...) represented by the SAME attorney: Jennifer K. Welsh. Talk about a pay-day! Other courts include New Hampshire, Nebraska, North Carolina, Massachusetts, and Tennessee.

Is there some sort of quota the labels fill before the end of the year?

[UNVERIFIED Case nos.: 1:2007cv00972; 4:2007cv03278; 1:2007cv00416; 5:2007cv03883; 2:2007cv05463; 2:2007cv05464; 2:2007cv05457; 2:2007cv05461; 2:2007cv05467; 2:2007cv05458; 2:2007cv05459; 2:2007cv05456; 2:2007cv05460; 2:2007cv05462; 2:2007cv05465; 2:2007cv05466; 1:2007cv00479; 3:2007cv00481; 6:2007cv00569; 4:2007cv04525; 4:2007cv04527; 4:2007cv04528. ***OTCS did not verify all case numbers; Check case files and citations before citing***]

Madge Moves On; Makes Money

My, oh my! Madge!

As the WSJ reports this morning, Madonna is leaving her record label, Warner Bros. Records, for...the concert promoter Live Nation? Yes, the very same Live Nation that clogs your in-box with Concert Updates, but that you don't unsubscribe from on the off-chance you can catch a gem, has now put on the record-label hat.

While I advocate challenges to the existing record-label model, I am curious how Live Nation will successfully be able to sell new Madonna albums. T-shirts - $25. Limited Edition Poster - $40. New Madonna CD - $50. Will people take the bait?

WSJ notes that:

It isn't clear when her first album for Live Nation would be delivered, nor is it clear how the promoter would distribute and promote the album, since the company has limited infrastructure to do so....People briefed on the deal speculated that Live Nation would enter a licensing arrangement with one or more traditional labels to release her albums.

No, it isn't clear.

Also, how much of a shock to the industry is this really? Madge is Madge, but how many other acts out there would (a) be able to afford lawyers to negotiate this kind of deal, (b) even be considered for this kind of deal, and/or (c) opt to venture into "virgin" territory? We all know that the real money for artists is in touring, and that big artists don't even really need labels if they have the built in fan-base. (Radiohead itself just released its new album exclusively on its website. See also Jeff Leeds, "In Radiohead Price Plan, Some See a Movement", New York Times (10/11/07 - Music) ("Radiohead is in a position that can’t easily be replicated — it completed its long-term recording contract with the music giant EMI while retaining a big audience of obsessive fans")).

But still - how plausible is this for the little...or even the medium...guy?

So mazel tov Madge, on a job well-done. But whether others will follow this Oregon Trail...I doubt it.