Sports & Entertainment Beat

California Governor Jerry Brown has taken a big step toward bringing film and television production back to California by signing a bill last week that increases the budget of its Film and Television Tax Credit Program from $100 million to $330 million.  In addition to the significant budget increase, the new bill replaces what many considered to be an arbitrary lottery selection process with one that considers eligible productions based on job creation and economic impact on the state, and it also opens up the program to films with budgets over $75 million for the first time.  California, the state most associated with the entertainment industry, has seen a sharp decrease in film and television productions occurring within the state due to an increase in the number of other states offering film and television tax incentive programs ("Incentive Programs"), a number of which offer more competitive incentives than that previously offered by California.  Since 2000, the number of states with such programs has increased from just a handful to a majority of the states, and according to Gov. Brown, the number of productions in California has been cut by half in the last 15 years.

On August 6, 2014, the online gaming community and video platform Twitch announced that copyright protected music and audio would be muted in its Video on Demand content.  In a move that is likely related to its recent acquisition by Amazon, Twitch is collaborating with Audible Magic, the provider of automated audio content identification software, to identify and mute copyright-protected content.  In an explanation provided on Twitch’s blog, it notes that it “respect[s] the rights of copyright owners” and is seeking to “help protect both our broadcasters and copyright owners.”

The Alliance of Artists and Recording Companies (AARC), an organization representing featured recording artists and sound recording copyright owners in the areas of hometaping/private copy royalties and rental/lending royalties, recently filed a federal class action lawsuit against automakers General Motors and Ford, as well as electronics manufacturers Denso and Clarion, seeking to collect royalties allegedly owed to artists, songwriters, record labels and music publishers under the Audio Home Recording Act (AHRA).

Billboard reports that music industry leaders are considering a single worldwide weekly release day for new albums.  The International Federation of the Phonograph Industry (IFPI) is proposing a uniform release day of Friday in a move that departs from the existing disjointed jurisdictional variation resulting from each territory’s ability to select its own release day.  As a result, albums are currently released on Friday in Australia and Germany, Monday in the United Kingdom, and Tuesday in the United States. The unification initiative is supported by the Recording Industry Association of America and executives in the major music territories and at the major labels.

YouTube Music Pass, the new Google-owned music service, has indicated that it intends to block content from independent labels that have not signed up for its subscription music service from its current free service.  YouTube Music Pass is a new streaming service that will allow people to download music to their mobile devices and watch and listen to music videos without ads, even when not online.  On June 17th, YouTube’s head of content and business operations, Robert Kyncl, confirmed that independent artists could disappear from YouTube if their labels do not sign up for the new service.

Many unsigned or independent music artists struggle to finance studio time, recording an album, touring the country or even promoting their music locally.  The struggle can push some artists to treat their talents like a hobby or even give up the dream of performing professionally. Others work full- or part-time jobs to raise the money themselves while playing small gigs for little pay. Some industrious artists use crowdfunding websites to raise the capital necessary to fund their talent.

After three extensions and close to two months of negotiations, SAG-AFTRA and the Alliance of Motion Picture and Television Producers (“AMPTP”), a trade association of Hollywood’s largest production companies, reached a tentative deal on a new three year master contract covering film and television on Friday, July 4, 2014.  The negotiations were led by Carol Lombardini for AMPTP and David White for SAG-AFTRA and resulted in a new 2014 Producers-SAG-AFTRA Codified Basic Agreement and an industry-wide 2014 SAG-AFTRA Television Agreement (together, the “Agreement”).

Website owners are battling or quietly settling an increasing number of copyright infringement claims for images posted without permission.  To avoid such claims, webmasters should be careful to make sure they have the proper permission from the copyright owner.  Just because an image is on the Internet and easy to cut and paste from another website, Facebook, Twitter, or other social media sites does not mean it can be re-used without permission. Images are protected even if they do not display the symbol ©. Save yourself headaches and legal fees by first going through the proper channels to obtain the clearances you need to use others’ images.  This article focuses on copyright issues but depending on how a photograph is used on your website, other permissions may be needed.  For example, publicity rights laws may require that you obtain permission from the people in the photograph, and trademark laws may require permission from the owner of any logo or branding appearing in the photo.

Billboard, the leader in the music industry for charting top artists and music, has partnered with Twitter and unveiled two new charts this week - the Billboard Twitter Trending 140 and the Billboard Twitter Emerging Artists.  Since its inception, Billboard has regularly developed new charts in response to changes in the music industry, specifically in the way that fans interact with and consume music.  According to Mashable, music is the most discussed topic on Twitter, with around one billion music-related tweets in 2013.

Case Background

In a case titled Garcia v. Google, Inc., 12-57302, the recent ruling of the 9th Circuit Court of Appeals (which covers nine states, including California) suggests that an actor has a protectable copyright in the recording of his or her performance. In this case, Cindy Lee Garcia was hired and paid to act in a film entitled “Desert Warrior.” Ms. Garcia’s role was minimal. She was given only 4 pages of script and filmed for 3 ½ days. While “Desert Warrior” was never released, the film’s writer and producer dubbed over Ms. Garcia’s performance and included it in a different film called “Innocence of Muslims.” “Innocence of Muslims” was posted on YouTube. The context in which Ms. Garcia’s performance appeared in the film was interpreted as anti-Muslim by the Muslim community. Following the film’s release and posting on YouTube, Ms. Garcia received death threats. Despite Ms. Garcia’s numerous requests to Google that it remove “Innocence of Muslims” from YouTube, Google refused.