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Artificial intelligence and user-generated content music tool company Mayk has announced the launch of its latest product, popstarz.ai. With the promise of helping anyone playfully assume the identity of a popstar and let a user sing their favorite song, the company hopes to revolutionize karaoke and strengthen the artist-fan relationship. Explore Explore See latest videos, […]
An eccentric Florida real estate mogul who lost millions investing in two West Coast festivals linked to Virgin Group co-founder Richard Branson won a bittersweet legal victory Friday (April 12) when a Delaware judge awarded him a $2 million breach of contract verdict over the collapse of KAABOO festival — but rejected larger fraud claims that could have netted him millions in damages.
Delaware judge Paul Wallace found that KAABOO’s previous owners had lied and misrepresented the financial health of the festival to investor Marc Hagle, who bought KAABOO in 2019, but ruled that Hagle likely knew the projections were fake because one of the festival’s board members had been sharing confidential data with Hagle during sales negotiations.
All told, Hagle, a 75-year-old Orlando commercial real estate developer, is estimated to have lost approximately $23 million investing in the festival business, including spending $10 million to buy the ill-fated KAABOO festival in September 2019, before going on to lose millions more unsuccessfully developing the Virgin Fest in Los Angeles.
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While the loss certainly stung, Hagle isn’t hurting for cash, having made his fortune building shopping centers for Walmart. In 2020, he donated $10 million to his alma mater, Purdue University, and two years later pledged $5 million to the University of Central Florida. In 2022, Hagle and his wife became the first married couple to travel to space on a flight from Amazon founder Jeff Bezos’ Blue Origin and are currently constructing a massive $33 million, 45,000-sq.-ft home in Winter Park, Fla., that will include a basement gun range and an indoor pool.
Friday’s ruling, absent an appeal, likely represents the end of Hagle’s attempt to recoup his $23 million loss through the court system. Earlier this year, a California appeals court refused to overturn a 2022 Los Angeles Superior Court decision allowing Lizzo, Ellie Goulding and Kali Uchis to keep millions in fees Hagle had advanced the artists in February 2020 to secure their performances at Virgin Fest. Weeks after the artists were announced, much of the United States went into lockdown due to the COVID-19 pandemic, forcing the cancellation of the festival.
Former Bear Stearns investment banker Bryan Gordon launched KAABOO in 2015, modeling the event’s high-end food and hospitality offerings around Napa’s BottleRock festival with headliner talent that included Pink, Red Hot Chili Peppers and the Foo Fighters.
Marketed to an older, more affluent audience, KAABOO quickly grew in popularity, but behind the scenes, Gordon’s brash style led to lawsuits from former investors, ex-employees and former partner Brett Mosiman, a Kansas promoter who won a $7 million judgement against Gordon in 2020.
While Gordon allegedly presented himself to Mosiman and others as a highly successful businessman who “owned so many hotels” he couldn’t “even count them” and regularly bought “$400 bottles of wine like they’re Chiclets,” financial documents obtained by Billboard showed Gordon had lost $30 million on KAABOO in less than five years.
Without an immediate capital infusion, Gordon would have to cancel the 2019 version of the festival, bankrupting KAABOO and prompting dozens of class-actions lawsuits from ticketholders that could have spread to Gordon’s other festival investments, like Virgin Fest, which Gordon co-owned with KAABOO’s chief marketing officer Jason Felts.
At the time, Virgin Fest was a holding company that owned the rights to license the Virgin trademark for music events and festivals from Branson. Running out of options for saving KAABOO, Gordon entered negotiations with Hagle for a deal that would eventually see Gordon resign from his position at Virgin Fest and sell his controlling shares in KAABOO to Virgin Fest in a $10 million deal financed by Hagle. As part of the agreement, Gordon would continue to produce KAABOO on behalf of Virgin Fest.
While the last-minute acquisition averted cancellation, it wasn’t long before both sides ended up in court, kicking off a five-year legal battle over the sale of KAABOO, which has been defunct ever since.
Gordon fired the first shot in the legal battle, filing suit against Virgin Fest weeks after the sale closed, alleging that Hagle and Virgin Fest had failed to pay KAABOO’s invoices in retaliation for Gordon’s decision to fire most of the KAABOO staff and place his daughter in charge of the company. Hagle and Virgin Fest countersued, arguing that Gordon had misled them about the festival’s financial outlook and falsified KAABOO’s financial records.
After a seven-day trial took place in a Delaware courtroom in January, Judge Wallace issued his ruling on Friday, finding that email evidence in the case indicated Gordon and company officers Robert Walker and Seth Wolkov spent hours systematically deleting expenses and overstating revenue so that KAABOO’s 2019 financial projection would show a modest $275,000 profit for the year instead of the more accurate $3 million loss company officials had previously forecast.
Wallace wrote that “KAABOO management made knowingly false representations” to Hagle and his attorneys and accused Gordon, Wolkov and Walker of “deliberate acts of concealment” and having “a clear motive to commit fraud.”
That wasn’t enough to win a fraud ruling, however, Wallace wrote in his 70-page decision. That’s because Hagle didn’t adequately prove he relied on the financial documents handed over by Gordon’s team and likely knew the claims were fake, Wallace explained. Emails produced during the trial showed that Felts — who was on the board of KAABOO at the same time his company, Virgin Fest, was trying to buy KAABOO, had been sending updates about the festival’s worsening financial health to Hagle, encouraging the real estate investor to play hardball with KAABOO and win concessions to sweeten the deal.
Wallace did, however, find that Gordon’s misrepresentations breached a transparency clause in the asset purchase agreement between KAABOO and Virgin Fest. According to the asset purchase agreement’s own guidelines, damages resulting from the breach of the document are capped at $2 million. Wallace thereby ordered KAABOO to pay Virgin Fest $2 million in damages, plus attorney fees.
For his part, Gordon was awarded a $360,000 consulting fee that Virgin Fest never paid him after he resigned from the company.
It’s unclear if Hagle plans to appeal the verdict. Without a legal option for recouping his investment, Hagle’s chances of recovering his investment hinge on the success of a group of new investors who have reportedly begun trying to raise money to license the KAABOO brand from Hagle as part of a brand revival. The investment group has not yet announced whether they will be reviving the festival brand in 2024 or 2025.
The U.S. Department of Justice is planning to sue Live Nation over alleged violations of federal antitrust laws, according to a report by the Wall Street Journal.
A lawsuit will be filed within weeks that alleges the concert giant leveraged its dominance over the live music industry to undermine competition for ticketing, the Journal reported Tuesday, citing people familiar with the matter. Few other details about the planned case were revealed.
Live Nation has faced widespread criticism from angry fans and lawmakers since its botched handling of Taylor Swift’s “Eras” tour in 2022. Days after the incident, news broke that the DOJ had already been investigating Live Nation for months over potential antitrust violations.
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Representatives for Live Nation and the DOJ did not immediately return requests for comment from Billboard.
Since Live Nation and Ticketmaster merged in 2010, the company has long faced criticism that it exerts an unfair dominance over the market for live concerts. The DOJ approved the merger at the time, but imposed a so-called consent decree designed to prevent the company from abusing its position. Those restrictions were set to expire in 2020, but they were extended by five years after the DOJ accused Live Nation of repeatedly violating the decree.
That same criticism resurfaced in late 2022 with the disastrous roll out of tickets to Swift’s tour, which saw widespread service delays and website crashes as millions of fans tried – and many failed – to buy tickets. Live Nation pinned the blame on a “staggering number of bot attacks,” but lawmakers quickly argued that the incident was the result of a market dominated by one company.
“Ticketmaster’s power in the primary ticket market insulates it from the competitive pressures that typically push companies to innovate and improve their services,” said Sen. Amy Klobuchar (D-Minn.), the chair of the Senate subcommittee for antitrust issues.
In December 2022, the New York Times reported that DOJ had already been investigating Live Nation for months before the Swift debacle, including reaching out to venues across the country to ask about the company’s conduct. A year later, Reuters reported that the probe was ongoing, with federal investigators focusing on whether Live Nation imposed anticompetitive agreements on venues.
Last year, Live Nation hired Dan Wall, a veteran competition attorney who previously headed the antitrust practice at the law firm Latham & Watkins, as an executive vice president for corporate and regulatory affairs. In a blog post last month, Wall publicly defended the company against allegations similar to those that could be coming in the DOJ’s lawsuit, arguing that ticket prices were set by artists and driven up by the forces of supply and demand.
“In the ongoing antitrust attacks on Live Nation and Ticketmaster, a constant theme is that their alleged ‘monopolies’ are responsible for high ticket prices,” Wall wrote. “Rhetorically, that’s understandable, because if you want to rile up fans against Live Nation and Ticketmaster, there is no better way than to blame them for something you know fans dislike.”
Cindy James has been promoted to general manager of Virgin Music Group‘s operations in North America, the company announced on Tuesday (April 16). The former executive of the week — and regular entry on Billboard’s Indie Power Players lists — joined the UMG-owned indie music distributor and label services company in 2019 as head of […]
Joseph Oerke has been promoted to executive vice president, Decca Records U.S., the Verve Label Group announced on Tuesday (April 16). “I love classical music,” Oerke said in a statement. “In fact, I moved to New York to study oboe and got my first job in the gift shop at the Metropolitan Opera. I think […]
Global Music Rights (GMR), the boutique U.S. performance rights organization (PRO) that represents Bruce Springsteen, Bruno Mars, Prince, Drake, Pharrell Williams, the John Lennon estate, the Eagles and others, has settled its copyright infringement lawsuit against the Vermont Broadcast Association (VBA) that was filed in January. According to Global Music Rights, which was founded by […]
Online ticket resale platform StubHub is considering going public as soon as this summer if it can secure a valuation of more than $16 billion, according to media reports. The Information first reported on Friday (April 12) that StubHub is aiming for a valuation of $16.5 billion, or the valuation it received in 2021 during […]
SAG-AFTRA, the union representing roughly 160,000 actors, dancers, singers, recording artists and other media professionals, and all three major music companies reached a tentative multiyear agreement last week that includes guardrails for the use of artificial intelligence technology across the industry.
A successor to the SAG-AFTRA National Code of Fair Practice for Sound Recordings, the new deal received unanimous approval from the guild’s executive committee and, if ratified by member vote, will cover the period beginning Jan. 1, 2021 through Dec. 31, 2026. Participating labels include Sony Music Entertainment, Universal Music Group and Warner Music Group, as well as Disney Music Group.
The AI guidelines require that the use of terms such as “artist,” “singer” and “royalty artist” only refer to actual humans, plus the deal calls for clear consent, minimum compensation and other stipulations prior to the release of a sound recording using a digital replication of a real artist’s voice.
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The tentative contract also includes increased minimums, health and retirement improvements, and an increase in the percentage of streaming revenue to be covered by contributions.
“This agreement ensures that our members are protected,” said Duncan Crabtree-Ireland, SAG-AFTRA national executive director. “SAG-AFTRA stands firm in the belief that while technology can enhance the creative process, the essence of music must always be rooted in genuine human expression and experience. We look forward to working alongside our industry partners to foster an environment where innovation serves to elevate, not diminish, the unique value of each artist’s contribution to our rich cultural tapestry.”
The Record Label Negotiating Committee said, “Together, we’ll chart a successful course forward, embracing new opportunities and facing our common challenges, strengthened by our shared values and commitment to human artistry.”
A new law in Tennessee aimed at protecting artists from AI-powered voice mimicry has won widespread acclaim from the music industry, but some legal experts are worried such laws might be an “overreaction” that could have unintended consequences.
Less than a year after a fake Drake song created using new artificial intelligence tools took the music world by storm, Tennessee lawmakers enacted first-in-the-nation legislation last month aimed at preventing exactly that scenario — the use of a person’s voice without their permission. The ELVIS Act (Ensuring Likeness Voice and Image Security) does that by expanding the state’s protections against the unauthorized use of a person’s likeness, known as publicity rights.
The passage of the new law was hailed across the music business. Mitch Glazier of the Recording Industry Association of America called it an “incredible result.” Harvey Mason Jr. of the Recording Academy described it as a “groundbreaking achievement.” David Israelite of the National Music Publishers’ Association called it “an important step forward.” Any musical artist who has had their voice used without permission likely shares those sentiments.
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But legal experts are more divided. Jennifer Rothman, a law professor at the University of Pennsylvania and one of the country’s top experts on publicity rights, rang alarm bells last week at a panel discussion in Nashville, warning that Tennessee’s new statute had not been necessary and had been “rushed” into law.
“We don’t want a momentary overreaction to lead to the passage of laws that would make things worse, which is currently what is happening,” Rothman told her fellow panel members and the audience. “The ELVIS Act has a number of significant concerns that are raised, particularly with the broad sweep of liability and restrictions on speech.”
In an effort to combat AI voice cloning, the ELVIS Act makes a number of key changes to the law. Most directly, it expands the state’s existing publicity rights protections to explicitly include someone’s voice as part of their likeness. But the new law also expands the law in ways that have received less attention, including adding a broader definition of who can be sued and for what.
According to Joseph Fishman, a law professor at Vanderbilt University who has been closely tracking the legislation, that broader wording “sweeps in innocuous behavior that no one seriously thinks is a problem that needs solving” — potentially including tribute bands, interpolations, or even just sharing a photo that a celebrity didn’t authorize.
“The range of acts that trigger liability is vast,” Fishman tells Billboard. “All the press around this law is focused on deepfakes and digital replicas — and those would indeed be covered — but the law as written goes so much further.”
Here’s why: Historically, publicity rights in the U.S. have been mostly limited to commercial contexts — like advertisements that use a celebrity’s likeness to make it appear they’re endorsing a product. The singer Bette Midler once famously sued the Ford Motor Co. over a series of commercials featuring vocals by a Midler impersonator.
The new law effectively gets rid of that commercial limitation; under the ELVIS Act, anyone who knowingly “makes available” someone’s likeness without authorization can face a lawsuit. It also broadly defines protected voices as any sound that’s “readily identifiable and attributable to a particular individual.”
Those are great changes if you’re a musical artist trying to sue over a song that’s using a fake version of your voice, since the old conception of publicity rights likely wouldn’t apply to that scenario. But Fishman says they have serious potential for collateral damage beyond their intended target.
“There’s nothing that would limit it to AI outputs, nothing that would limit it to deceptive uses,” Fishman said. “The lead singer in an Elvis tribute band who sings convincingly like The King certainly seems to fall under the definition. So do Elvis impersonators.”
In an “even more extreme” hypothetical, Fishman imagined an “unflattering” photo of Elvis that he knew the Presley estate didn’t like. “The law seems to say I’d be liable if I sent that photo to a friend. After all, I’m transmitting his likeness, knowing that the rightsholder hasn’t authorized the use. Stop and think about that for a moment.”
The ELVIS Act does contain exemptions aimed at protecting free speech, including those that allow for the legal use of someone’s likeness in news coverage, criticism, scholarship, parody and other “fair use” contexts. It also expressly allows for “audiovisual works” that contain “a representation of the individual as the individual’s self” — a provision likely aimed at allowing Hollywood to keep making biopics and other films about real people without getting sued in Tennessee.
But confusingly, the law says those exemptions only apply “to the extent such use is protected by the First Amendment.” That wording, according to Rothman, means those exemptions essentially “don’t exist” unless and until a court rules that a specific alleged activity is a form of protected free speech, a costly extra step that will mostly benefit those who want to be in court. “This specific law creates great work for lawyers,” Rothman said. “So much work for lawyers.”
Those lawyers are going to be filing real lawsuits against real people — some of whom are the scary, voice-cloning bad actors that the music industry wants to crack down on, but also some of whom are likely just regular people doing things that used to be legal.
“The law could absolutely lead to lots of lawsuits,” Fishman says. “There’s plenty of room here for people to test how far the statute can go, whether because they object to how they’re being depicted or because they see an opportunity for an extra licensing stream.”
Though it only applies to Tennessee, the importance of the ELVIS Act is magnified because it is the first of likely many such legislative efforts aimed at addressing AI mimicry. At least five other states are currently considering amending their publicity rights laws to address the growing problem, and lawmakers on Capitol Hill are also weighing federal legislation that would create a national likeness statute for the first time.
At last week’s roundtable, Rothman said those efforts were misguided. She said that laws already on the books — including federal trademark law, existing publicity rights laws, and numerous other statutes and torts — already provide avenues to stop voice cloning and deepfakes. And she warned that the proposed federal bills posed even more serious problems, like allowing someone to sign away their likeness rights in perpetuity.
For other legal experts critical of the ELVIS Act, including Harvard University law professor Rebecca Tushnet, the hope is that any subsequent legislation, whether at the state or federal level, can be more directly tailored to the actual AI-fueled deceptions they’re supposed to address.
“Any new laws need to be far more targeted at specific harms,” says Tushnet, who has written extensively about the intersection of intellectual property and free speech. “Right now, this statute and other proposals are dramatically overbroad, and threaten legitimate creative conduct.”
Warner Chappell Music has entered an agreement to administer Electronic Arts‘ music library. One of the world’s largest gaming companies, Electronic Arts is home to titles like The Sims, Medal of Honor, Madden NFL, Apex Legends and more. Explore See latest videos, charts and news See latest videos, charts and news EA Worldwide executive and […]