Entertainment Litigation Blog

HOW THE DIGITAL MILLENNIUM COPYRIGHT ACT (DMCA) PITS WEBSITES AGAINST TRADITIONAL MEDIA COMPANIES

The growing power and influence of the internet presents a different kind of challenge to traditional media companies. Social networking websites like YouTube and MySpace were once viewed as novelties with limited reach. Now visited by millions of users 24 hours a day, these user-friendly websites present a legitimate threat to traditional media companies and the manner in which people obtain information and spend their free time.

The battle between the new media and traditional media turned ugly last March when Viacom filed a billion dollars suit against YouTube for copyright infringement.

Continue reading "ENTERTAINMENT LITIGATION: MEDIA WARS -- YOUTUBE VS. VIACOM" »

AGGRESSIVE GOVERNMENT TACTICS PUT ALL MEDIA INCREASINGLY AT RISK

Recently, news media organizations have faced government pressure to reveal sources or other information or face criminal prosecution. The most infamous of these cases involved Judith Miller of the New York Times. Miller went to jail when she refused to reveal her confidential source for a news story in connection with a grand jury investigation. (Another reporter working for Time magazine agreed at the last minute to reveal his confidential source when his source gave him permission to do so.)

Yesterday's New York Times reveals a new tactic -- a government investigative subpoena which also threatens prosecution of the target for the mere disclosure of the subpoena. Apparently, the First Amendment is not what it used to be.

Continue reading "ENTERTAINMENT LITIGATION: THE FIRST AMENDMENT ISN'T WHAT IT USED TO BE" »

ACTORS' DEAL EXPIRES WITH NO PACT ON THE HORIZON

July 1 has come and gone with no deal in place which would prevent another crippling strike in Hollywood. The Screen Actors Guild and the Alliance of Motion Picture and Television Producers have reportedly reached an impasse in their negotiations for a new collective bargaining agreement to replace the previous agreement, which expired at 12:01 a.m. Tuesday morning. While the two sides are scheduled to meet today, public statements by AMPTP representatives make clear that the studios are unwilling to consider any changes to their final proposal which they transmitted on Monday, June 30.

For its part, SAG has acknowledged that the studios' final proposal is "generally consistent" with the agreements that the studios brokered with other guilds, including SAG's sister union, the American Federation of Television and Radio Artists. The studios first reached agreement with the Directors Guild of America in January. That agreement helped facilitate a resolution with the Writers Guild of America after an extended writers strike which halted production virtually across the board. Recently, the studios reached agreement with AFTRA on a new agreement with that union. The voting results of the AFTRA membership should be known some time next week.

Apparently, those deals are not good enough for some at SAG.

Continue reading "ENTERTAINMENT NEWS: ANOTHER STRIKE BREWING?" »

NEW FIRM, NEW BEGINNING

Tomorrow, on July 1, 2008, I start a new practice in my own law firm -- The Avanzado Law Firm. I left my partnership at Jeffer, Mangels, Butler & Marmaro this afternoon.

In so doing, I am going back to a small firm environment which should allow for more flexibility in my practice. I will continue my entertainment and intellectual property litigation practice and hopefully expand the kinds of matters I am able to handle. It is my hope that taking full control of my legal career will ultimately allow me to better serve clients.

As I get settled in my new life and office, I hope to add new substantive posts. As I have been distracted lately, I realize that I have not been posting much. Thanks for your patience.

TELEVISION JUDGE LOSES BID TO HAVE CASE AGAINST MANAGER DECIDED BY THE CALIFORNIA LABOR COMMISSIONER

Alex Ferrer, a former Florida judge now known as Fox's "Judge Alex" on television, entered into a contract with Arnold Preston, a lawyer who provides "services" to people in the entertainment industry. The dispute between centered on the nature of those "services" -- with Preston claiming that he was Ferrer's personal manager and Ferrer claiming that Preston acted illegally as an unlicensed talent agent.

Pursuant to an arbitration clause in their contract, in 2005, Preston demanded arbitration on his claim that Ferrer failed to pay for his services. Ferrer countered with a petition to the California Labor Commissioner, claiming that the contract was void under the Talent Agencies Act because Preston acted illegally as an unlicensed talent agent.

And so began three years of litigation before the Labor Commissioner and the courts, culminating in the US Supreme Court's decision yesterday.

Continue reading "ENTERTAINMENT LITIGATION: "JUDGE ALEX" LOSES SUPREME COURT APPEAL" »

NBC filed a lawsuit on Friday, January 25, 2008 against the creator and executive producer of its three "Law & Order" series, Dick Wolf. The lawsuit reveals a dispute between Wolf and NBC over the terms of his contracts for the three highly successful programs and seeks the court's intervention to interpret -- or reform -- the agreement between the parties.

According to NBC's complaint, Wolf takes the position that the parties agreed that the 2 season guarantee means that, should NBC terminate any of the Law & Order series, he is entitled to 2 years of producing fees, essentially as a severance or "kill fee." NBC disputes that interpretation. NBC claims that the parties agreed that NBC's promise of a 2 season guarantee means that, if NBC decides not to order an additional season of episodes, NBC would be on the hook only for the remaining year on the prior 2 year order.

The parties were unable to resolve their differences during pre-lawsuit negotiations -- and rumors abound that one or more of the Law & Order series are in trouble and could be cut from NBC's lineup.

Courts are generally loathe to change the terms of written contracts. So NBC has its work cut out for it to convince the court to re-write the agreement to conform to its understanding. And NBC claims that the agreements themselves are confidential in deciding not to file the documents with its complaint. So while it's difficult to analyze the exact dispute between the parties over interpretation of unseen documents, those details will eventually become public if the parties continue to litigate the case in the courts.

STUDIOS INVOKE FORCE MAJEURE TO JETTISON TALENT DEALS AS WRITERS STRIKE CONTINUES

As the strike by Hollywood's writers enters its third month, studios have started to terminate overall talent deals with producers and writers. Dubbed "Black Friday" and "Black Monday" by the trades, virtually every major television production arm terminated deals this past Friday and Monday. ABC Studios started the carnage on Friday, January 11. On Monday, January 14, CBS Paramount Network TV, Universal Media Studios, 20th Century Fox Television and Warner Bros. TV followed suit with their own cuts.

The studios' efforts to jettison these deals raises interesting issues and brings to the forefront potential strategies by artists who can use contractual rights to apply pressure to their studios.

Continue reading "ENTERTAINMENT NEWS: FORCE MAJEURE CLAUSES WREAK HAVOC ON TALENT DEALS" »

The Directors Guild announced a tentative collective bargaining agreement with the Alliance of Motion Picture and Television Producers (AMPTP). The DGA's description of their tentative deal can be found here. The directors received concessions on issues relating to jurisdiction over new media as well as on compensation for internet downloads and other new media.

The widely anticipated agreement now increases the pressure on the writers, who are entering the third month of their work stoppage. Whether the writers think the directors' agreement is sufficient remains to be seen.

The Writers Guild of America strike is now entering its third month. Production on film and television projects have ground to a halt. Yet, as my JMBM colleague, E. Barry Haldeman, suggests in his Malibu Times op-ed piece, the end may be in sight.

The WGA has signed "interim" agreements with independent production companies and smaller studios, which could signal a break in the ranks of the studios which have held firm against the writers' demands. The Weinstein Company, the newly revamped United Artists and David Letterman's Worldwide Pants Production Company are among the companies who have reportedly signed such interim agreements with the WGA. Those companies are now free to resume production on their projects.

In addition, the Directors Guild reportedly has achieved some progress in its "pre-negotiations" with the AMPTP. Reports suggest that the directors can reach agreement with the AMPTP in a matter of a couple of weeks.As Barry writes, these recent events give some hope that the writers' strike can also be resolved in short order.

However, the WGA and the studios/networks have recently taken adverse actions against each other, which suggests that a resolution is not imminent. The WGA has pressured networks and studios by refusing the grant waivers for the upcoming awards season. Having reduced the Golden Globes to a reading of award winners, the Oscars and the Grammys -- usually a time for celebration in the entertainment industry -- are now in jeopardy. On the other side, ABC Studios, CBS Paramount Network TV, Warner Bros. TV, 20th Century Fox TV and Universal Media Studios have started to terminate overall deals with writers and producers. Representatives of the terminated talent vow revenge. Thus, the end result of both sides continuing to draw blood from each other is that nothing is getting produced in Hollywood.

If both sides persist in continuing this fight, the obvious conclusion is that darker days for the industry lie ahead.

E. Barry Haldeman, one of my colleagues in the JMBM Entertainment Group, wrote an interesting op-ed piece for the Malibu Times on the WGA strike. You can read his piece here. As Barry writes, the principal issue preventing a deal with the writers seems to be how to handle, and divide revenues from, new media such as cell phones and the internet. Not surprisingly, each side is wary of giving much ground because of the potential ramifications as these new media become more popular. Time will only tell if the parties will compromise on their positions.

The season premiere of the television show, Desperate Housewives, on September 29, 2007 provoked controversy when one of the show's punch lines took aim at the Filipino medical community. Teri Hatcher’s character, Susan, discusses with her doctor the possibility that she suffers from an early onset of menopause. Not pleased with his diagnosis of her condition, Ms. Hatcher quips that she would first like to check the doctor’s diplomas “to make sure they’re not from some med school in the Philippines.”

Not surprisingly, the Filipino-American medical community was highly offended by this remark.

Continue reading "ENTERTAINMENT NEWS: DESPERATE HOUSEWIVES TAKES UNNECESSARY SWIPE AT FILIPINO MEDICINE" »

INFLUX OF TRADITIONAL INSTITUTIONS MAY BE AT ODDS WITH NOTORIOUS ACCOUNTING PRACTICES

Back in the day, the ways in which movies were financed called to mind the adage about never wanting to see how sausages are made. Producers using credit cards and borrowing money from friends and family to get their movies to the silver screen were legend. Others tell of the wealthy spending millions of dollars on films to satisfy a desire to mingle with the stars or see their names on the screen.

Times have changed.

Continue reading "FILM FINANCING: WALL STREET INVADES HOLLYWOOD" »