Judge Sides with AEG/Goldenvoice, Dismissing Coachella 'Radius Clause' Lawsuit

Coachella safety guards.

According to a federal choose, Coachella’s highly-restrictive radius clause doesn’t trigger any hurt to smaller music festivals.

Coachella arguably stays one the biggest, hottest, and most pritable music festivals on the earth.  Yet, for years, the music pageant has remained a key contractual clause with artists underneath wraps.

To carry out on the main music pageant, artists to the next.

  • Artists taking part in at Coachella can’t carry out at any pageant in North America from December 15th to May 1st.
  • They can also’t play at onerous ticket concert events in Southern California throughout that point.
  • They can’t “promote, publicize, or leak” performances at competing festivals happening in California, Nevada, Oregon, Washington, or Arizona that happen after May 1st till after May seventh.  This additionally applies to headliner concert events in Southern California.
  • Artists can also’t announce pageant appearances for 45 states within the US till after Coachella reveals its lineup in January.  Exceptions embrace SXSW, Ultra Miami, and New Orleans Jazzfest.
  • Artists should additionally watch for the January unveiling to disclose their very own tour stops in California, Arizona, Washington, and Oregon.  This doesn’t apply to casinos in Las Vegas.

That’s clearly dangerous information for smaller music festivals.

Taking on Coachella, Soul’d Out Productions, a Portland-based music pageant promoter, filed a lawsuit in opposition to the main pageant and house owners AEG/Goldenvoice final April.

The promoter claimed Coachella and AEG aimed to “monopolize the marketplace for widespread music” within the West Coast.  Specifically, as with different smaller music occasions, Soul’d Out had issues with Coachella’s ‘radius clause.’  Major artists, together with SZA, regularly backed out performing on the manufacturing firm’s music pageant.

Nika Aldrich, a lawyer for Soul’d Out Music Festival founders Nicholas Harris and Haytham Abdulhadi, mentioned Goldenvoice operated “an unlawful monopoly available in the market for dwell music pageant performances.”  Coachella had “unreasonably limiting worth and price competitors amongst dwell live performance venues” and “restricted] entry or growth rivals.”

Now, a choose has made a key ruling in Soul’d Out’s case in opposition to the main music occasion.

Yes, radius clauses are completely authorized.

In an Oregon courtroom, US District Court Judge Michael Mosman ruled in favor AEG/Goldenvoice.

Attorneys for Coachella’s house owners had argued artists might resolve to play smaller festivals as an alternative Coachella in the event that they felt the situations are too restrictive.

The complete goal the radius clause is to guard AEG from rivals unfairly free-riding on its inventive decisions in deciding on its artist lineup.

Judge Mosman agreed.  He didn’t discover any antitrust harm from Coachella’s radius clause to Soul’d Out Productions.  Thus, Judge Mosman dismissed the lawsuit with prejudice.  This means Soul’d Out Productions can not refile the case in opposition to Coachella, AEG, or Goldenvoice.

Praising the ruling, Shawn Trell, AEG/Goldenvoice’s General Counsel and Chief Operating Officer, mentioned,

We’re happy with the courtroom’s determination right now to dismiss the lawsuit difficult the agreements between Coachella and artists.

Coachella is concentrated on offering an unbelievable pageant expertise for each followers and artists, and appears ahead to a different particular occasion subsequent month.

 


Featured picture by Malcolm Murdoch (CC by 2.zero).