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Showing posts with label Lawsuit. Show all posts
Showing posts with label Lawsuit. Show all posts

Thursday, October 2, 2014

The Lesson's of the Kansas City Lawsuit

9-29-14

Successful radio personalities need to be creative geniuses. One has to be a genius to create three or four hours of engaging, fast-paced, entertaining content five days a week. They also need to be smart enough to know when a bit is potentially defamatory. When Kansas City morning personalities Alfentra and Danny Boi asked listeners whether they knew of any local porn stars, it arguably had the creative potential to be both funny and defamatory.

They received a text message with the name Ashley Patton.  A second text followed with the same name. 

While the morning personalities were undoubtedly glib on the radio, their keyboarding skills left something to be desired as they fat-fingered Ashley Payton, rather than Patton, into Google.  Ashley Payton indeed had pornographic images of herself on the web.   As part of the on-air bantering, the morning team stated that it would put up Ms. Patton?s (not Ms. Payton?s) name on the station?s website on their self-created ?unofficial porn list of Kansas City Metro.?

The local Ashley Patton (not Ms. Payton with the nude photos), however, was a law student.  The local Ms. Patton was just awarded damages of $1M in a lawsuit against the radio station licensee for this sequence of events. 

Leaving aside whether it is ever good judgment to make fun of a law student ? (recall, for instance, Sandra Fluke and Rush Limbaugh), what are the lessons that both radio personalities and management can glean from this tale of a morning show radio bit gone bad.

The law on incidents such as this one vary from state to state.  What may be non-actionable as a matter of law in one state may invoke the specter of a humongous legal liability in another.  Therefore, I will not attempt parse or generalize the law in this case other than to describe what happened. 

Ms. Patton made two Kansas state law claims in her lawsuit: (1) false light invasion of privacy, and (2) negligent supervision.  In the litigation, the radio station filed a motion for a summary judgment.  The court determined that the false light invasion of privacy claim was one for the jury, but dismissed Ms. Patton?s claim of negligent supervision. 

Here is a link to the judge?s summary judgment ruling:  Memorandum and Order-Summary Judgment  (https://ecf.ksd.uscourts.gov/cgi-bin/show_public_doc?2013cv2186-77).   This ruling is well worth reading for a recitation of the facts agreed to by each side of this incident.

The judge?s directed verdict to Ms. Patton?s negligent supervision claim held that ?[Ms. Patton] has presented no evidence of a physical injury, just emotional distress in the form of embarrassment, humiliation, feeling upset and shaken, anxiety, and sleeplessness. Accordingly, Kansas law compels judgment against [Ms. Patton]?s negligent supervision claim as a matter of law.?  Thus, the negligent supervision claim did not go to the jury and was dismissed in a partial win for the radio station.  

The claim of false light invasion of privacy, however, survived summary judgment and went to the jury with the judge stating that:

 ?there is evidence from which a reasonable jury could conclude that [the radio station] acted with reckless disregard when it broadcast [Ashley Patton?s] name and identified her as a local porn star. ? The summary judgment facts establish that Ashley Patton is not a porn star. A jury could conclude that defendant acted recklessly when its agents decided to broadcast a falsehood provided by text message from an unverified and anonymous source and its lone attempt to verify that falsehood consisted of a flawed internet search that returned pornographic images for a person not the [Ms. Patton].  Further, during the broadcast, the on-air talent said that they would put a list of ?alleged? porn stars on the radio station?s website. ? In the end, a reasonable jury might find that Afentra and Danny Boi did not act recklessly when they broadcast [Ms. Patton]?s name and called her a local porn star. Conversely, a reasonable jury could also find that defendant?s agents acted recklessly when they broadcast [Ms. Patton]?s name and identified her as a local porn star based only on information received from an anonymous, unverified source and an erroneous internet search.?

As we now know, the ?reasonable? jury found in Ms. Patton?s favor and awarded $1M in damages, $250,000 for actual damages and $750,000 in punitive damages.

There is a portion of the judge?s ruling describing the first phone call that the angry Ms. Patton made to the radio station that should be required reading for anyone in management at a radio station.   Assume for a moment that the first phone call from Ms. Patton to the radio station?s program director had gone differently, if perhaps if the program director did not suggest that Ms. Patton might be a porn star, or if perhaps the program director had simply called Ms. Patton back as he promised to do?  The judge writes: 

?Sometime after noon that same day, [Ms. Patton] called the radio station and reached Program Director Scott Geiger. Until the phone call from [Ms. Patton], Geiger did not know there had been a segment about local porn stars on ?Afentra?s Big Fat Morning Buzz? that morning. [Ms. Patton] told him that the morning show had called her a porn star and that she was angry. In response, Geiger asked [Ms. Patton], ?Well, are you?? [Ms. Patton] replied that she was not and Geiger replied, ?How do you know that you?re not a porn star?? [Ms. Patton] stated that she was in law school and that she did not ?do anything like that.?  ?  At the conclusion of the phone call, Geiger told [Ms. Patton] he would call her back. But he never did.?

The takeaway here for radio personalities and management is fourfold.  First, be acutely sensitive to a member of the public calling to complain about on-air content.  Know enough about media law to be able to identify when on-air content might be of such a nature as to be something someone might file a lawsuit over.  Had the program director here not initially been snarky to Ms. Patton, and then once the error was discovered he had fallen all over himself to rectify the error, his radio station might have never have been sued.  Also, for program directors and middle management, keep in mind that upper management, and possibly the station?s lawyers, should be involved at the first hint of a situation that could lead to legal liability.  Not only does involving upper management often defuse a problematic situation involving an aggrieved third party, it also brings expertise and experience to what may very well be a complicated legal situation. 

Second, if there is edgy, provocative content on the air, be absolutely sure that there is an understanding by air personalities and management of what can constitute legally-actionable content in your state.  With the facts of this case, mistakenly identifying a member of the public on the air as a ?porn star?, putting that person?s name on a website in an ?unofficial? listing of porn stars, and repeating the on-air mistake by leaving up a podcast of the error even after the error is made known to management, has the potential in many states to lead to a lawsuit. 

Third, any program content that has the potential to expose a person who is not a public figure to hatred, shame, disgrace, contempt or ridicule, injure a person?s reputation or cause the person to be shunned or avoided, or injure the person in his or her occupation, is likely to be legally actionable. 

Finally, be absolutely certain that the radio station?s media content insurance policies cover all of the ancillary activities engaged in by today?s radio stations and radio personalities.  Here, not only was the content at issue broadcast, but it was also posted to a website and distributed as a podcast.   While there is no suggestion in this case that the station?s insurance did not fully cover the defense and liability, it is the prudent manager and owner that periodically checks insurance coverage to be certain that all forms of content created by the station and its employees are covered.

Mistakes will occur in the running of any business.  The more that creativity and edgy programming is involved, the more likely it is that someone will be offended.  The challenge is to stay on the side of the line where creative content does not turn into a lawsuit. 

John F. Garziglia is a Communications Law Attorney with Womble Carlyle Sandridge & Rice in Washington, DC and can be reached at (202) 857-4455 or jgarziglia@wcsr.com.

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Sunday, September 28, 2014

Jury Rules Against Entercom Station In 'Porn Star' Lawsuit

9-26-2014

A woman who sued Entercom's KRBZ (96.5 The Buzz)/Kansas City over being falsely identified as a "porn star" in a 2012 broadcast has been awarded $250,000 in actual damages and another $750,000 in punitive damages by a jury, the Kansas City Star reports. The station reportedly confused the woman's name with that of another individual; all sides agree she has never been involved in the pornography industry.

Entercom spokesman Kevin Geary said in a company statement, "While we are very disappointed in the outcome, we will abide by the jury's verdict."

The paper reports that the Afentra's Big Fat Morning Buzz program, hosted by Afentra Bandokoudis and Daniel "Danni Boi" Terreros, on April 20, 2012 asked listeners if they knew any porn stars. They received a text message with Ashley Patton's name and city, and searched Google -- finding there pornographic images of a woman named Ashley Payton. The show members didn't catch the mistake, and Ashley Patton's name was later posted on the station's website, with a link to a podcast of the show. Patton made several calls to the station, and the information was taken down.

The station's defense was that it was an "unknowing mistake" on Terreros' part; punitive damages would require that the company authorized or OK'd the station's actions.

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Monday, January 6, 2014

Blackberry Files Lawsuit Against Seacrest

1-6-14

A product financially backed by radio star Ryan Seacrest is about to debut at the Consumer Electronics Show in Las Vegas. Seacrest and entrepreneur Laurence Hallier created a product called Typo, a slip-on keyboard iPhone accessory that offers BlackBerry like functionality. The product is now being targeted by Blackberry in a lawsuit.  Blackberry attorney Steve Zipperstein said, ?This is a blatant infringement against BlackBerry?s iconic keyboard, and we will vigorously protect our intellectual property against any company that attempts to copy our unique design.? 

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Friday, November 29, 2013

Eddie "Piolin" Sotelo Lawsuit Gets Real Ugly

11-25-13

Former employees have made some extremely disgusting allegations against the SiriusXM radio host when they all worked with Sotelo on broadcast radio. The allegations, detailed in a letter from six former employees, that we'd rather not publish, have been detailed in a short TMZ article that you can read HERE. Piolin sued the six employees for extortion. He says they asked him for about $5 million or they'd go public with these details.

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Friday, November 8, 2013

Broadcasters Face HD Radio Lawsuit

11-5-13

Delaware Radio Technologies and Wyncomm have filed a patent infringement lawsuit against most of the large broadcasters that are now using HD radio. While any lawsuit has to be taken seriously, many affected by this suit say this is S.O.P. for entities, also known as patent trolls, to file a lawsuit and hope for a settlement, rather than an injunction to stop the technology. Broadcast attorney John Garziglia tells Radio Ink the patents appear to relate more to using copper wire for telephone modems than they do to HD Radio.

The suit claims, "defendant, including its affiliates, has directly infringed and continues to directly infringe, both literally and under the doctrine of equivalents one or more claims of the '866 Patent through its transmission of radio broadcasts using HD radio transmission techniques further described in the IBOC Digital Radio Broadcasting Standard." iBiquiity CEO Bob Struble tells Radio Ink, We are aware of the lawsuit and are in close communication with the effected broadcasters on the issue."

We reached out to attorney Bill Ragland, from the law firm Womble Carlyle Sandridge & Rice in Atlanta for comment. Ragland specializes in  patent litigation and we asked him what broadcasters should do if they are broadcasting on HD channels.

Ragland (pictured left) says it's too soon to tell whether DRT and Wyncomm will sue or demand license fees from small broadcasters. "If a broadcaster does receive notice of a lawsuit or even a demand letter, they should consider contacting an attorney with patent litigation experience. Like the patents involved in the MAD lawsuit, the three patents asserted by DRT and Wyncomm are quite old.  Two of the DRT/Wyncomm patents expire on November 15, 2013 and the other one expires in June 2014.  It is not unusual for so-called ?patent trolls? to file suit when the term of the patent is nearly over.  In such cases, the patent holder seeks royalties from the alleged infringement rather a court order stopping the alleged infringement.  DRT and Wyncomm have not sought an injunction prohibiting the broadcasters it sued from using the equipment at issue."

Radio companies named in the suit include Cumulus, Townsquare, Univision, Beasley, CBS Radio, Clear Channel, Cox, Entercom, Entravision, Greater Media, Hubbard, Radio Disney, Radio One and Saga.

(11/6/2013 7:31:17 AM)
Sounds like Wyncomm has a very strong case. If they win, I wonder if the settlement would extend to any new HD Radio stations in the future. Let's say that Brazil converts to HD, could Wyncomm sue them too? This is very bad news for iBiquity and any future for HD.

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Monday, October 14, 2013

What's in The Tantaros Lawsuit

10-11-13

The list of Tantaros' allegations against TRN, in her breach of contract lawsuit, is lengthy, including claims that Fox News was concerned about Tantaros' brand  due to the "implosion of TRN." Tantaros is claiming TRN knew all along it was in financial trouble, about to file a lawsuit against Dial Global (now WestwoodOne), saw her staff cut to the point they could only book "C-list" quality guests and was left with a sales force unable to sell the program. Here are several specific allegations from the lawsuit...

Here are specifics from the Tantaros lawsuit which you can read HERE:

"Plaintiff TANTAROS? chief employer, the Fox News Network, has repeatedly expressed its concern at the implosion of Defendant TRN, according to recent news reports. Presumably, Fox News Network?s concerns emanate from potential damage to Plaintiff TANTAROS? brand and the effect that it may have on its young, previously ascendant, star, Plaintiff TANTAROS, as well as, the potential negative impact on the Fox News Channel."

"That the previous host of the prime morning timeslot, Laura Ingraham, was a nightmare, difficult to deal with, and an impossible and unfair negotiator and that is why Defendant TRN was planning to part ways with Ms. Ingraham and why her coveted time slot would be available. That Plaintiff TANTAROS, due to her status as a member of The Five and her ascending national renown, would be a perfect replacement for Ms. Ingraham and Defendant TRN would guarantee, vis-?-vis allocation of marketing dollars, to catapult her to the very top of the radio world, and correspondingly, she would receive substantial revenue sharing; c. That Defendant TRN was very well capitalized and possessed the capacity to spend ?millions? of dollars to market Plaintiff TANTAROS? show and in the process make Plaintiff TANTAROS a radio star and reward her financially through revenue sharing."

"As of the second week of September, 2013, and a direct result of the actions of Defendant TRN, Plaintiff TANTAROS found herself in a situation wherein she no longer had a competent executive producer, a full-time call screener, a paid assistant, or a sound effects manager, and further, had either no guests or only decidedly ?C-list? quality guests, was provided with no research for the third-rate guests that were booked for the Tantaros Show, a lack of sufficient research for the topics at hand, provided with no editorial guidance, and she was expected by Defendant TRN to basically produce her own show. In addition, there no longer was any meaningful sales force to sell her program to advertisers or potential advertisers and there was no affiliate
relations staff at Defendant TRN to service the needs or the requests of the Tantaros Show?s affiliates. The ?overnight? complete deterioration of the quality of the Tantaros Show is, and continues to be, damaging to Plaintiff TANTAROS? brand and her hardearned professional reputation."

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Sunday, October 13, 2013

Tantaros Off The Air. Files Lawsuit Against TRN.


10-11-13

Three days after our cover story on Andrea Tantaros came out, she is off the air with no clear indication when or if she'll ever be back on. It's a situation that has been plaguing TRN lately with the departure of Michael Savage (now with Cumulus), who also filed a lawsuit against TRN and Laura Ingraham (now with Courtside). Tantaros launched her show over a year ago with TRN CEO Mark Masters promoting her heavily as the next big big talent in the Talk Radio format. One former TRN employee told Radio Ink last night Tantaros has not been paid for over a month, has never been told how many affiliates her show is on and TRN has never shared any advertiser information (part of her deal was revenue sharing). Tantaros' attorney Joseph Cane declined to speak to Radio Ink last night, however, he did offer the following statement:

"This is a situation entirely of TRN's own making. TRN's dire financial troubles have unfortunately affected its ability to uphold multiple contact responsibilities to Ms. Tantaros.   Andrea loves doing radio, values her affiliates and has fulfilled the duties of her contract for the past two months while TRN has kept her in the dark, fired her staff, and the staff at TRN necessary to sell the show to advertisers. In fact, rather than attempting to facilitate a solution to the many issues at hand, TRN would prefer to do nothing, including not pay its talent. This is indeed unfortunate. Further, many of TRN's breaches were incapable of cure. Perhaps most importantly, TRN induced Andrea into the contract based on a set of material misrepresentations of fact and engaged in self-dealing at her expense.  As a result, although Andrea wanted to continue to be a loyal trooper, TRN left her with no choice but to leave to mitigate damage."

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Thursday, June 13, 2013

Schnitt Files Another Lawsuit

6-11-13

After losing his case against Bubba The Love Sponge, Todd "MJ" Schnitt has now filed a lawsuit against his former attorney claiming legal malpractice. The circus-like trial about radio in Tampa was fueled by the arrest of Schnitt's attorney Philip Campbell on a DUI charge. The Schnitt team claimed he was set up by an employee from the law firm representing Bubba. Schnitt has already paid Campbell's firm $1 million and according to The Tampa Bay Times Schnitt owes $1 million which he refuses to pay. In his lawsuit Schnitt is asking for his original $1 million back.

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Thursday, May 2, 2013

Cox's Cowhead Show Facing Lawsuit Over Doctored Picture

4-30-13

Can your DJ's be held responsible for pictures they post on your station website? How many times have they Googled a photo and posted it or sent it in an e-mail? What happens if that photo is altered and changes its entire context? A Nashville family claims that's exactly what Mike "Cowhead" Calta did to their son, who has Downs Syndrome, and they have filed a lawsuit. Cowhead works at WPHT in Tampa. A picture of 17-year-old Adam Holland was posted to the Cowhead show website under the heading, "Retarded News." The Holland family is asking for $6 million in the lawsuit.

The original photo of Holland (seen below) was taken in 2004. In it, he is smiling and holding up a drawing that includes the words "Go Titans." The Hollands say the altered image has caused them "severe mental anguish and emotional distress," and "humiliation, fear and embarrassment." They are seeking compensatory and punitive damages.

While Cox did not comment to the Miami Herald about the lawsuit, the attorney for the Holland family says he has an e-mail from WHPT Program Director Michael Sharkey saying the "Retarded News" segment "is designed to highlight odd stories that are seemingly always in the news. These stories are NOT about disabled individuals. However, in our investigation, we noted the picture that he was using did denote a person with Down Syndrome. We have removed that picture from our page and we are removing any reference to handicapped or disabled individuals." Sharkey apologized for "any grief this might have caused."

Read the full story in the Herald HERE

(4/30/2013 10:04:11 PM)
People who think it's funny to make fun of someone with Downs Syndrome shouldn't be in broadcasting. Kids in preschool are taught that this is something you don't do. So we've people on the air without the common sense of a four-year-old.
(4/30/2013 6:48:35 PM)
Another thing that's just plain wrong is people being able to post comments on the internet without identifying themselves.

(4/30/2013 6:48:34 PM)
Another thing that's just plain wrong is people being able to post comments on the internet without identifying themselves.

(4/30/2013 6:46:43 PM)
Chuck...you're dead wrong. There is a lot wrong with pushing boundaries when it involves the humiliation of others. This is not the kind of thing the law should have to get involved with because it should not have happened in the first place. It's just plain wrong.
(4/30/2013 3:20:00 PM)
He should be fined $6 million for being sad and uncreative.

There are oodles of other ways to get teh point across without doing the equivalent of a fart joke.

He should be fired for taking the easy way out.


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Thursday, December 27, 2012

Lawsuit Filed Over Journal Knoxsville Purchase

12-26-2012

As we reported last week, Journal announced it had purchased WNOX in Knoxville, giving it a 4th FM in that market. As soon as the deal was announced, the owner of M&M Broadcasting filed a lawsuit against Johnny Pirkle, the owner of WNOX. M&M claims that it had a deal to buy the station but says "in the final days Journal intervened and got the deal." The sale still must be approved bf the FCC.



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Tuesday, October 2, 2012

Savage Says He Won Lawsuit Against TRN

9-28-2012

Michael Savage will be off the air for "some time" according to his website. He's posted a message that says, "after a grueling legal battle that cost him and his family dearly, Michael Savage can announce he won." Savage filed a lawsuit against TRN in 2010 over his contract and says he is "now free to work with whomever he wishes in the radio industry from this day forward." We've left a message with Savage's attorney to try to get more detail. Late last night Talk Radio network CEO Mark Masters told Radio Ink, ?We are all looking forward to announcing a bright future; radio's October Surprise will begin on Monday, October 1st.? More details as we get them.

Late Thursday night, we've reached out to Premiere, Dial Global and Cumulus regarding the possibility of picking up Savage. Nobody had any comment at this time.

Boston.com reported that Savage spent more than $900,000 fighting his case but was awarded more than $1 million in arbitration. The agreement also calls for Savage to be able to obtain all archived tapes of his show. Savage was heard on nearly 400 stations. World Net Daily broke the story Thursday night and it was one of the top headlines on Drudge.

(9/29/2012 5:14:28 PM)
Poor Mark, now sulking with Mickey L. and Mickey Mouse over their losing Michael Savage over $.

Pay Up or don't play!

(9/29/2012 12:35:54 AM)
I hope that Teddy is ok.
(9/28/2012 12:19:19 PM)
He's off the air, he wins? Listeners lose.
(9/28/2012 11:47:00 AM)
Call up ex TRN director of programming Phil Boyce - now over at Salem Radio.

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Sunday, September 9, 2012

Hendrie Not On Board With TRN Lawsuit

9-6-2012

You don't often hear about a syndicated radio personality taking a shot at the company that syndicates him. However, this is Phil Hendrie. Hendrie's been around awhile, always speaks his mind about the radio business, and isn't one to go along with the crowd. 

Hendrie, who's syndicated by Talk Radio Network, has issued a statement about the lawsuit the company recently filed against Dial Global. When asked last night why he was making a statement on the lawsuit, Hendrie told Radio Ink, "it's my constitutional right to do so."

In his statement, he said ?I?d like to make it very clear that TRN does not represent my views and I certainly don?t need them ?standing up? for me in regard to this lawsuit, which I don?t support.  My livelihood is not dependent on TRN.?

Upon reviewing Talk Radio Networks? recent lawsuit filed against several radio companies and individuals, Phil Hendrie took exception to section 60 which states, ?Today, by bringing this Action, Plaintiffs stand not only for themselves, but also for every smaller independent syndicator, network or programming producer, and for the hosts, producers, technicians and other Americans whose livelihoods are dependent upon these independent syndicators.?

TRN CEO Mark Masters could not be reached for comment by the time we went to print with this story.

(9/8/2012 10:43:49 AM)
Phil Hendrie has to delete the comments of useres like Mojo's; it's because your comments are always one after another after another, as we can see you've already posted 2 in a row already.
(9/8/2012 1:02:52 AM)
The First Amendment prevents the government from denying you the right to free speech - it does not have anything to do with how citizens react to each other's comments. That is, it isn't a violation of the First Amendment if someone deletes your comments from a forum. You are free to start your own forum or website and express yourself - the Constitution doesn't mean you are allowed to do so on my dime.
(9/7/2012 6:24:31 PM)
Oops! I didn't clarify in the post below that Phil deletes comments that are critical of him or his show. Naturally he doesn't touch praise, but if he doesn't like what you have to say he will censor the comments and kick you off his site with no warning.

Great way to treat his fans! So much for freedom of speech.

(9/7/2012 6:16:07 PM)
Phil loves to play the tough-as-nails bad boy but his actions on his website have proven otherwise.
Phil also allows comments on his site, but regularly deletes posts and cancels the accounts of members who post such comments (and we're not talking about anything profane, more like sincere, constructive criticism).

These are not the actions of a "tough" guy, let alone a man who likes to quote the Constitution.

No first amendment rights with Phil!

(9/7/2012 2:11:48 PM)
But seriously, it sounds like TRN is just mad that other networks actually have REAL stations. All TRN has are 5 watt small town stations with zero listeners.

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Friday, August 31, 2012

Others Named in the TRN Lawsuit?

8-29-2012

Mark Masters is going after additional companies and individuals in the complaint he filed Tuesday. Also named are; Compass Media, Oaktree Capital, Excelsior Radio Networks, Triton Radio Networks, Triton Media, Verge Media, Courtside Entertainment, WYD Media and individuals Spencer Brown, Ken Williams, David Landau, Norm Patitz, Peter Kosnan and Ron Hartenbaum. And here's why Masters named these additional companies and people in his complaint.

Masters alleges that the formation of Compass Media, Courtside Entertainment and WYD and WYM were formed to create the false impression of an independent content provider. Compass lists The Lars Larson Show, Todd Schnitt Show and The Norm Goldmann show under programming on its website. WYD Media carries Michael Smerconish, Stephanie Miller, Thom Hartmann, David Webb, Mike Malloy and Zach Sang. Courtside lists Loveline with Dr. Drew, The Dave Koz Show and Talking Points with Bill O'Reilly.

We reached out to all the companies named in the complaint last night and only received the following response, from Ron Hartenbaum. "I am aware of the litigation although I have not been served as of this time. I am aware that   Mr Masters  has sued both WYD Media, and WYM Media, our newly created affiliated sales organization. He has also sued me personally/individually. I have retained CA counsel since the suit was filed in Federal Court in Sacramento. I am sure it would be fun to be a fly on the wall when my lawyer calls his."

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Thursday, August 30, 2012

Opinion: "TRN Lawsuit Could Be Dismissed."

8-29-2012

After reading through the 38 page document TRN filed in United States Federal Court in Tuesday, we reached out to an attorney who specializes in anti-trust cases. Here's the opinion he offered up "It appears that the simple way to look at the allegations made is that the plaintiffs some number of years ago were seduced by defendants into having defendants' affiliate stations carry their programs and sharing advertising revenues with a promise of truthfulness and faithfulness. But, defendants thereafter also seduced others in carrying programming that now competes with plaintiffs' programming.  And as in any failed relationship, there are allegations of grievous lies and unspeakable acts."

The attorney we spoke with says, "there is a decent chance for a dismissal of the lawsuit."

"A feature of this lawsuit is the peppering of First Amendment claims within it.  A curtailment or harming of First Amendment rights is not generally possible by a private entity.  Rather, governmental actions are generally the subject of the First Amendment.  In the lawsuit, the plaintiffs allege that the defendants "power to control the financial fate of over 100 Independent Spoken Word Syndicators, held in the hands of unelected Wall Street executives, is chilling to the First Amendment, because that concentration of power over the financial destinies of so many syndicated providers of non-music, non-sports spoken word radio programming ... forces these programmers into silence, through the fear of financial repercussions from the rep firm these Spoken Word Programming providers depend on for their very survival."  Defendants' conduct may be allegedly harmful to plaintiffs, but it does not appear by any stretch to be "chilling to the First Amendment"." 

"This complaint appears to be a disgruntled programming supplier lawsuit gussied up in grandiose claims of Sherman Act and Clayton Act violations.  Simply put, the programming supplier plaintiffs  entered into contractual relations with program syndicators and now believe that those contracts have been breached.  These observations are not to minimize the alleged harm or damage that may have accrued to the plaintiffs.  But, it will be interesting to see if the plaintiffs are able to proceed with the litigation of their Sherman Act and Clayton Act antitrust claims which are getting all the attention, or whether those claims quickly wither and die."



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Sunday, May 13, 2012

Can Morning Show Banter Result in a Lost Lawsuit?

5-10-2012

You read about the Clear Channel Detroit morning man Mojo (pictured) of Mojo in the morning who may be eing sued by one of his cast members. We wanted to know what our legal eagle John Garziglia thought of the entire situation so we threw it at him. We asked Garziglia: Can a morning man and parent company really be sued - and lose - over something that was said in a back and forth between two co-workers in a morning show setting?  Is there any radio precedent case where this has happened before, and has gone to trial?

Garziglia: Gotta admit, this was a great bit.  Right?  A morning personality chides his co-host for an allergy to a scarecrow, the co-host gets mad, quits on the air, and the bit gets coverage on the local ABC TV affiliate!   But, it looks like each of Mojo, his employer, and the co-host may be spending money on lawyers. 

There are some gaping holes in the facts now reported so it is difficult to say whether Mojo?s co-host has any legal claim whatsoever.  The only facts we have now are those that are most favorable to the co-host who is doing the accusing.  The co-host?s lawyer letter opens by accusing Mojo of an ?on-air constructive termination of [his co-hosts] employment and claims both Mojo and the radio station licensee violated Michigan public policy and disability discrimination statutes.  The co-host?s lawyer accuses Mojo of pressuring the co-host to ?violate intellectual property laws by posting copyrighted materials on the Mojo in the Morning website?.   The letter goes on to state that Mojo ?illegally revealed [the co-host?s] confidential medical information? over the air, violating the Americans with Disabilities Act (?ADA?), the Michigan Persons with Disabilities Act, and  ?HIPPA? (we assume the attorney meant ?HIPAA,? the Health Insurance Portability and Accountability Act!).  The co-host?s attorney closes the letter by calling the radio show bit a ?surprise attack?. 

It is not clear whether Mojo was a managerial employee and a superior to his co-host, or whether both were simply employees.   The co-host?s lawyer reportedly stated that an employer cannot go on the air and talk about its employees? private medical conditions.  With all due respect to Mojo, suggesting that Mojo was the co-host?s employer likely elevates this Detroit market morning show host to a far greater status than even his ego would imagine. 

Even assuming that Mojo and the co-host were in a supervisor-subordinate relationship, from the what is known about the case, one should be skeptical of the co-host?s legal theories about the disclosure of medical information.  The co-host and his lawyer assert that Mojo revealed confidential medical information on air, in violation of the ADA and HIPAA.  Without bogging down on the fine details, the ADA only protects medical information that is disclosed during certain employment-related medical examinations or inquiries.  This appears to exclude on-air dialogue.  HIPAA, as a general proposition, does not apply to employers in the first place, and even it did, HIPAA does not allow individuals (like the co-host) to file their own lawsuit as a remedy.

More fundamentally, it is not clear whether the co-host voluntarily revealed his own medical information or consented to its publication on-air.  If the co-host voluntarily shared his own medical condition with the audience, it would be difficult to bring any legal claim for it.  That may be why the co-host?s lawyer is characterizing the escapade as an ?ambush? in which, even though the co-host?s reason for being there was to participate in the on-the-air banter, the co-host it is argued was nonetheless an unwilling or coerced participant.

Further, while there are a variety of new state law causes of action for invasions of privacy, it is doubtful at best whether revealing that a co-host has allergies from working on a scarecrow would rise to such a level as to be a violation of one?s right of privacy.  This is particularly so if the co-host himself revealed such information to others and both were on-air performers who routinely spoke of personal information in an attempt to provide entertainment. 

The item in the attorney?s letter that is most interesting is the allegation that the co-host was asked to ?steal? copyrighted materials and post them on the station?s website.  It looks like he is claiming that Mojo was forcing him to break copyright laws over his objection.  Most states prohibit employers from retaliating against employees who object or refuse to participate in illegal conduct.  If it turns out that the co-host was making objections to forced illegal behavior, the employer might have to do some explaining to show that the ?ambush? and ?constructive termination? of the co-host had nothing to do with those objections.  Further, it is a wise reminder to radio stations that, in almost all states, asking an employee to do something against the law can have significant legal repercussions particularly if that employee is terminated or quits for something related to such a request. 

Rather than comment exactly upon which way this case will go, it is useful to reflect more generally on advice to managers and radio stations in avoiding such on-air situations from getting out of hand.  It is unlikely that the relationship between Mojo and his co-host was smooth up until the point that the co-host quit.   Rather, it is likely there were hints both on and off the air of significant friction between these two radio personalities.  While the content of their morning show may very well have been predicated in part upon the humor that arises from such friction, it is the job of station management to be attuned to when such friction or other lack of harmony is likely to lead to an undesired result.  Here, no matter how unfounded the threat of a lawsuit might be, the undesired result of a threat of a lawsuit as well as the unanticipated loss of part of a morning team possibly might have been avoided by a better management sense of workplace harmony issues. 

Another aspect to this situation which is instructive in radio station operations is a sense with both management and air personalities that certain program content is likely to be offensive or harmful.  This type of offense or harm can occur in on-air pranks, on-air commentary and as we have seen with Mojo and his co-host, in morning show banter.  Something ceases to be funny, for example, if a person is highly offended or has a reputation harmed, or there is a business that has its economic prospects damaged.  It is these types of situations, where someone is belittled, a business is disparaged, or a person is made to look like a fool, that leads to lawyers and lawsuits.  Huge red flags should go up with both management and air personalities regarding such on-air content. 

This is not to suggest that radio content should shy away from controversy or other biting commentary.  Rather, the admonition is that on-air content that has the potential to offend or harm should be fully vetted prior to broadcast by management so that an out-of-control radio host does not embroil a station in a lawsuit or other public relations fiasco that could have been avoided.   And, as a final reminder, be sure that the station?s error and omissions insurance fully covers all conceivable claims that could be made regarding both on-air content, and in today?s world of social media any other media content that may be generated by station employees.

Fore more articles from John Garziglia go HERE
You may also like David Oxenford's BLOG

John F. Garziglia is a Communications Law Attorney with Womble Carlyle Sandridge & Rice in Washington, DC and can be reached at (202) 857-4455 or jgarziglia@wcsr.com. Have a question for our "Ask The Attorney" feature? Send to edryan@radioink.com.

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Sunday, April 29, 2012

Stern Appeals Lawsuit Dismissal

4-26-2012

Bloomberg reports that Howard Stern isn't quite ready to let his lawsuit against the company he works for die. Stern appealed a judge?s dismissal of a lawsuit against Sirius XM Radio Inc. over unpaid stock awards. Stern sued Sirius XM claiming the company did not pay him $300 million in stock awards he says they owed him. The suit was tossed April 16th. 

Bloomberg says the Stern side contends that the court ?misinterpreted the parties? contract and granted summary judgment before there was any discovery taken in the action. Reversal is warranted because, among other things, the parties? contract is clear on its face that plaintiffs are entitled to the relief they seek or is, at a minimum, ambiguous.?

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Wednesday, March 28, 2012

What Does Mel's Lawsuit With SoundExchange Mean to You?

3/28/2012
by Ed Ryan

The complicated scenarios broadcasters and webcasters pay to artists, via SoundExhange, may soon be wrenched out in a court of law thanks to a lawsuit filed yesterday by SiriusXM. That company would rather deal directly with labels than have to go through a Mother Ship. NAB Radio President John David says, in a cover story interview with Radio Ink (4/9), that the issue of fees paid to performers first came up when he took his seat at the NAB table...that was in the early 90's. And, he expects the issue to continue to be a thorn in radio's side in the future.

At present, through a deal NAB negotiated with SoundExhange a few years ago, rates are set through 2015. Radio pays nothing to play music over-the-air because, radio says, there is a huge value for artists when their music is played by Ryan Seacrest, Elvis Duran and others. It leads to record sales, does it not? Some find it ironic that folks who, back in the day, used to illegally pay DJ's to play their music are now asking radio to pay them. So, what does the Mel lawsuit mean to terrestrial radio? We turned to a few folks with extreme brain power for the answer.

Attorney David Oxenford is with Davis Wright Tremaine. He says music licenses that are directly negotiated between music users and rights holders are traditionally the best evidence of the value of music. "In recent rate court cases involving performing rights organizations, direct licenses formed crucial evidence of the value of music rights, in some cases resulting in a lowering of royalty rates.  If Sirius XM is successful in its suit, and if it is in fact able to negotiate direct music licenses for substantial catalogs of music at rates lower than what it has paid under previous rate decisions, that might provide good evidence of what rates should be.  Lower direct licensing rate could also impact other proceedings dealing with the sound recording royalty rate, possibly including proceedings for webcasting royalties #a proceeding that will also affect the rates that broadcasters pay for streaming their signals)." 

Francisco Montero of Fletcher, Heald & Hildreth says this is a very interesting case. "It reminds me of the antitrust consent decrees that the music licensing organizations like ASCAP and BMI were subjected to by the Justice Department, following claims of antitrust violations by those organizations. In fact, BMI was originally created by radio broadcasters as an alternative to ASCAP. And more recently, the Radio Music Licensing Committee just entered into a new settlement agreement with ASCAP this year following RMLC's own suit also filed in the US District Court for the Southern District of New York. SoundExchange is the new kid on the block covering in the digital music licensing world. This case could put SoundExchange's authority to set rates and maintain its unique position in the digital music licensing arena to the test."

Attorney John Garziglia of Womble Carlyle Sandridge & Rice says any discussion of performance fees inevitably highlights that over-the-air radio is exempt from performance fees for its broadcast of musical recordings. "Second, rates paid by SiriusXM for both performance fees and streaming can and will have an effect, either positive or negative, on future rates likely to be paid by broadcast radio stations if the law is changed to require radio broadcasters to pay performance fees, and for the performance fees that radio broadcasters must now pay for streaming of programming."

"Third, success by SiriusXM with this lawsuit could enable other big players in our industry such as major radio groups to enter into similar all-inclusive agreements with record labels.  Such one-on-one agreements could include various additional rights to musical recordings such as downloading and use in promotions, and could exclude all other radio stations from the same additional rights.  Thus, in the future big content providers such as SiriusXM and major radio groups may pay far less for content, and may have many more forms of musical recorded content available, than do other radio broadcasters." 

"And fourth, this lawsuit is one more attack on the pricing and distribution power of big record labels to control the musical recording market.  If SiriusXM succeeds in its lawsuit, its hope is that many record labels, when not negotiating as a group with take-it-or-leave-it pricing power through SoundExchange and industry associations, will agree to much lower payments when faced with a huge SiriusXM having the power to include, or exclude, their content from being delivered to the several tens of millions of customers SiriusXM serves." 

Garziglia adds that SiriusXM has huge potential as a distributor of content. "There is no other content provider that has a ubiquitous coverage of the continental United States with one content delivery system.  While services such as Pandora and other non-streaming, non-sequential, delivery of musical recordings, are making inroads into consumers? musical listening practices, those services rely upon the internet which in delivery to automobiles and mobile devices is problematic for reliability, and expensive for significant amounts of data. For SiriusXM to replicate a Pandora-like or other advanced delivery of musical recordings using its satellites and repeaters as the primary delivery mode and other content delivery platforms as supporting modes, it needs comprehensive licenses to do so.  It seems likely that SiriusXM is looking to that future in bringing this lawsuit.  It hopes to keep record labels from dictating continuing huge, and possibly crippling, rates for musical content delivery across different platforms."

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SiriusXM Files Lawsuit Against SoundExchange

3-27-2012

Mel is taking on SoundExhange. Sirius XM has filed a complaint against SoundExchange and American Association of Independent Music ("A2IM") accusing both organizations of interfering in "SiriusXM's efforts to secure, through a competitive market, copyrights critical to its business." SiriusXM wants to cut deals directly with record companies, and not a middleman, which in essence is what SoundExchange is. The complaint contends that the conduct violates federal antitrust, as well as New York state law. It says, "Although SiriusXM has the legal right to reach out to individual record companies for such licenses, SoundExchange, in collaboration with other record industry organizations, has orchestrated an illegal boycott designed to choke off such competition. 

SiriusXM's direct licensing initiative is beneficial to the Company, listeners, artists and record labels.  This filing reflects SiriusXM's commitment to taking the steps necessary to maintain its rights to conduct business in a free and open market for the benefit of its business, listeners, artists and record companies.

Read the entire complaint HERE

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Wednesday, February 22, 2012

Cumulus Files Lawsuit Against Finebaum

2-19-2012

The Birmingham Business Journal is reporting that Cumulus is now countersuing popular Birmingham sports talker Paul Finebaum, alleging he was conducting secret negotiations to move his show to a competing network as early as 2009 and that he shared confidential information about Citadel in the process. Finebaum filed suit against Citadel (which was purchased by Cumulus) alleging the company coerced him into signing an unfavorable amendment to his employment contract by threatening to pull his popular radio show from the air if he refused.


The paper also says the Finebaum suit also alleges breach of contract against Citadel over a recent bankruptcy and claims that company executives worked intentionally to suppress Finebaum?s pay.

Read the entire Business Journal article HERE

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