Q1 2008legal news business newsQ1 2008Musicin SharesShares in live echo market instability…Manfred Tariwww.pop1000.com1312LegalNewsIt’s all about those rights, according to IQ’slegal beagle Ben Challis…FOUR TOPS UNMASK IMPOSTERAbdul 'Duke' Fakir, a founder member of theFour Tops, has won a legal action in theHigh Court in London against ViscountOliver Miller who has been touring the UKunder the name Viscount Oliver's LegendaryFour Tops.Miller had no connection with the FourTops, either in a recording or performingcapacity, although he had argued that hisband was a ‘tribute band’. Fakir and fourother claimants began action against Millerafter being made aware of the ViscountOliver’s Legendary Four Tops tour by a UKfan. Fakir then discovered that Miller hadtrademarked ‘Viscount Oliver's AmericanDream The Legendary Four Tops’ in the UKand that Miller had been touring the UK forsome time using photographs of theoriginal Four Tops, seemingly to convincepunters that they were the genuine article.In press handouts, Miller had claimed hehad recorded with the band and inferredthat he was one of the Four Tops. When theViscount refused to stop touring under theFour Tops banner, or to surrender histrademark, Fakir unsurprisingly sued,advised by ILMC regular Alexis Grower ofMagrath & Co.Although Miller issued a defence, thiswas struck out by the court after "persistentand serious breaches of court orders" onthe defendant's part. The court found inFours TopsFakir's favour, issuing an injunction to stopMiller from performing under the Four Topsname, damages and a declaration invalidatingthe defendant's trademark of ‘ViscountOliver’s American Dream The LegendaryFour Tops.’Ben ChallisThe order prevents Miller using any nameconnected with the Four Tops or containingthe phrase ‘the Four Tops’ and from usingphotographs of the band’s original line up(s).Interestingly, the order includes arequirement for dissemination of the orderto the venues at which Miller’s actappeared. This had to be by way of anadvert in The Stage booked by Fakir directlybut paid for by Miller at a cost of over£2,000 [€2,700]. An inquiry into damageswas ordered and the defendant also had topay over £18,000 [€24,000] in legal costs.Alexis Grower commented that althougha growing number of US states now hadlegislation in place to protect both bandsand customers against imposter bands (theso called 'Truth in Music' laws) this was notfederal law and that “as more and more ofthese 50s and 60s bands reach an agewhen they are no longer with us or unableto perform, then this sort of activity willoccur." He added: "Doing so is far morethan just being a tribute band, it is actuallytaking over somebody else's reputation,profile and brand. This may be somethingwe should consider lobbying to be broughtinto English law as a protection.”The financial community is in a state of irritationat the moment. While the price of gold is rising,shares – and in particular, shares in financialinstitutions – are suffering. Reasons for thisinclude the home loan crisis in the US, Frenchrogue trader, Jérôme Kerviel, and high oil prices.And it’s no surprise that this has in turn affectedthe performance of live music companies on thestock market.On 1 February, analysts at Morgan Stanleyraised the CTS Eventim (stock symbol EVD)share price target from €31 to €36, followingthe ticketing system deal between CTS andLive Nation (LYV), that was announced inlate December.Morgan Stanley continued to rate CTS sharesas “overweight” (good value) but on 31 January,CTS Eventim reported that two of MorganStanley’s investment departments (in New Yorkand Wilmington, Delaware) had reduced theirCTS shares to less than 3% of CTS’s issuedshare capital (both departments now hold2.93%). The current share price is €26.23.DEAG (EDG) shares aren’t doing so welleither, with the current share price standingat only €1.44. At the end of 2007, theyannounced that they would be analysed bySES Research.The Edge Performance VCT (EDG) sharehas also dipped, from 90p [€1.21] to 80p[€1.07] at the Alternative Investment Market(a sub-market of the London Stock Exchange).Ingenious Media has two dedicated livemusic investment funds (Ingenious Live VCT1 and 2) listed on the London Stock Exchange.Both have fallen from £1 [€1.34] to 90p [€1.21].Meanwhile, the share price of the funds’initiator, Ingenious Media Active Capital Ltd,went up from 79p [€1.06] to 80p [€1.07].On Wall Street, Live Nation has beenhaving a tough time, with shares droppingfrom $19.50 [€13.29] to $10.66 [€7.36] inthe last three months.On 23 January, the share fell below $10[€6.8], hitting an all time low of $9.6 [€6.5]having begun – after the Clear Channel spinoff – on 23 December, 2006 at $10.50 [€7.2].A year ago on 3 February, the share reachedan all-time high of $25.05 [€17.07]. Live Nationrecently announced the appointment of MichaelCohl as the Chairman of the Board of Directors.MAMA Group released a business reporton 21 January covering the period up until31 July 2007. The report didn’t contain anybig news or surprises but the share didincrease from 4.85p [€0.65] to 5.5p [€0.74]following its publication.Live Nationshare priceCOPYRIGHT REFORM TOPSLEGISLATIVE AGENDAAs the digital revolution marches on,legislators in Sweden, the UK and otherEuropean nations have all been looking atcopyright reforms. Copying compact discsonto computers or iPods could becomelegal for the first time in the UK undergovernment proposals, in a move that partsof the music industry have warned could“open the floodgates” to further filesharing.Lord Triesman, minister for intellectualproperty, has said he will begin aconsultation process that will end in March.The consultation will look at the viability oflegalising such recordings as long as theyare for personal use. The Association ofIndependent Music has warned that theexception could be the start of a deluge of“uncontrolled and unstoppable” privatecopying and sharing. Geoff Taylor, chiefexecutive of the British PhonographicIndustry said that he was broadly in favourof the changes because it would clarify thelaw for consumers. However, Taylor said thegovernment should ensure that the movewould not “do harm to” the record industry.In Sweden, liberal members ofparliament have responded fiercely to arecent report which recommended that ISPsshould be forced to regulate all of theirclients’ communications, in an attempt toclamp down on illegal filesharing ofcopyright material – a move that wouldmirror similar action in other Europeanjurisdictions, such as France.A paper authored by six members of theModerate Party attempts to ally the sharingof information over the internet withfundamental rights of privacy included inthe European Convention on Human Rights,as well as characterising the issue as one of‘freedom of information.’In particular, the authors see it as crucialthat members of the Swedish parliament, andSwedish politicians in general, do not affiliatethemselves with so called ‘special interest’groups such as the copyright industries.At the same time as these storiesappeared, the European Commission (EC)published its paper, Communication onCreative Content Online in the Single Market,which aims to encourage the contentindustry, telecoms companies and ISPs towork closely together to make more contentavailable online. In particular, the reportsays that copyright owners need to thinkabout Europe-wide solutions to onlinecontent rather than licensing on a territoryby-territorybasis.The EC has also said that piracy remainsa central concern and that it intends toinstigate co-operation procedures (‘codes ofconduct’) between access/service providers,rights holders and consumers.Ben Challiswww.musiclawupdates.com