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.

We often hear about Tommy John surgery for baseball players, and it may be becoming more commonplace.  For example, several pitchers for the New York Yankees have undergone the procedure in recent years.  In general, Tommy John surgery is a medical procedure to repair a torn ulnar collateral ligament (UCL) in the medial elbow.  Before the procedure was developed, the injury was considered career-ending. These days, talented pitchers who undergo the surgery often become top flight pitchers once again.

As the surgery has become more commonplace, so too have patents and patent applications referencing the surgery or the injury it was designed to treat.  Various types of businesses have been able to identify opportunities related to UCL tears and surgical repair of the injury, many of which are ancillary to the surgery.

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.”

On August 18, 2014, the Ninth Circuit Court of Appeals issued an opinion that may impact the way website users are bound by Terms of Use.  In Nguyen v. Barnes & Noble, Inc., Plaintiff had purchased two items during a "fire sale" on the Barnes & Noble website, received an order confirmation and then received another e-mail the following day notifying him that the order had been cancelled.  Plaintiff proceeded to file a putative class action lawsuit against Barnes & Noble, alleging deceptive business practices and false advertising.  In response, Barnes & Noble moved to compel arbitration pursuant to the Barnes & Noble website Terms of Use.  Plaintiff argued that he never clicked on the link to the Terms, and he had no notice of the Terms or the arbitration provision.  The district court ruled in favor of the Plaintiff, finding that, even though the site contained a hyperlink to its Terms of Use on every page, including through completion of the purchase process, the Plaintiff did not have actual notice of the Terms, nor did the existence of the hyperlinks provide him with constructive notice (i.e. implied notice) of the Terms, and Plaintiff was therefore not bound by the arbitration provision.

With high-profile deaths of iconic NFL players such as Junior Seau and Dave Duerson making headlines over the past couple years, the long-term health and well-being of NFL players has come to the forefront as the hot topic of the day.  Nowhere has this issue gained more notoriety and exposure than in the series of lawsuits filed against the NFL by retired players.

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.

When UCLA basketball star Ed O’Bannon saw his avatar used in an NCAA-branded video game for which he received no compensation, he decided to take action, and agreed to serve as lead plaintiff in a class action challenging NCAA rules prohibiting student-athletes from receiving a share of revenues earned from use of their names, images and likenesses.  The suit alleged that the restrictions constitute an unreasonable restraint on trade in violation of antitrust laws.

On Thursday, the NCAA Board of Directors voted to allow Notre Dame and the top five conferences in Division I - Atlantic Coast, Big Ten, Big 12, Pacific-12 and Southeastern Conferences (collectively known as the “Big 5”), to create their own rules in the following 11 areas affecting student athletes (the “Autonomy Measures”):

• Athletics Personnel;

• Insurance and Career Transition;

• Career Pursuits Unrelated to Athletics;

• Recruiting Restrictions;

• Pre-Enrollment Expenses and Support;

• Financial Aid;

• Awards, Benefits and Expenses;

• Academic Support;

• Health and Wellness;

• Meals and Nutrition; and

• Time Demands.

The decision of a Los Angeles probate judge on Monday, July 28, 2014, provides a glimpse into the private lives of owners of an NBA franchise.

Judge Michael Levanas, in the Sterling Family Trust matter, evaluated the testimony of both Shelly Sterling and Donald Sterling, found Mrs. Sterling to be more credible and issued a tentative oral ruling giving her authority to move forward with the sale of the Los Angeles Clippers for $2 billion to former Microsoft CEO Steve Ballmer. Mrs. Sterling entered into the sale as the sole trustee of the Sterling Family Trust.