Tag: National Independent Venue Association

Stubhub & Co. Launch Stealth state-by-state legislative offensive strategy for Astroturf “Model” State Ticketing Laws

By Chris Castle

Yes, it’s kismet in the legislature–the sketchy ticket resellers are redoubling their efforts to normalize “speculative tickets.” They have found a willing partner in gaslighting with an organization called “ALEC”.

The American Legislative Exchange Council (hence “ALEC“) is a nonprofit organization that brings together private sector representatives and relatively conservative state legislators to draft (and pass) “model legislation” that pushes a particular narrative. (That private sector representation is led by Netchoice, aka, Big Tech.) Unlike other model legislation with a social benefit like say the Uniform Partnership Act, ALEC’s “model legislation” pushes a particular agenda. Examples would be “stand your ground” gun laws, Voter ID laws, and “right to work” laws.

Netchoice Members (Netchoice leads ALEC’s Private Enterprise Advisory Council)

ALEC’s many successfully-passed “model” laws are intended to be passed by state legislatures as-written. Like Al Capone’s green beer, it ain’t meant to be good it’s meant to be drunk. A cynic–not mentioning the names of any particular cynics–might say that the ALEC strategy is an end-run around federal legislation (like the fake library legislation that was shot down in New York). If ALEC can get a critical mass of states to pass one of their “model bills” as-drafted on any particular subject, then the need for federal legislation on that topic may become more muted. In fact, if federal legislation becomes inevitable, the ALEC model bills then provide guidance for federal legislation, or new federal legislation has to draft around the states that adopt the model bill.

So much for Justice Louis Brandeis’ concept of states as laboratories of democracy (New State Ice Co. v. Liebmann, 285 U.S. 262 (1932)), unless that lab belongs to Dr. Frankenstein. ALEC’s mission claims to promote principles of limited government, free markets, and federalism; I will leave you to decide if it’s more about checkbook federalism.

Ticketing Panel, Artist Rights Symposium 11/20/24, Washington DC
L-R: Chris Castle (Artist Rights Institute), Dr. David Lowery (Univ. of Georgia, Terry College of Business), Mala Sharma (Georgia Music Partners), Stephen Parker (National Independent Venue Association), Kevin Erickson (Future of Music Coalition)

Like so many of these bills, ALEC’s Live Event Ticketing Consumer Protection & Reform Act disguises its true objective with a bunch of gaslighting bromides that they evidently believe to be persuasive and then when you’re not looking they slip in the knife. Then when the knife is protruding from your back you discover the true purpose. I think this section of the bill is the true purpose:

This is an odd construct. The model bill starts out by requiring positive behavior of a primary seller (which would be the band on fan club sales or other direct to fan sales). That positive behavior immediately turns to using the ticket purchaser into an enforcer of the values beneficial to the ticket reseller. This is done by forcing a purchaser to be able to resell their ticket without regard to any restrictions placed on reselling by the artist. 

And you know that’s the intention because the section also requires there to be no maximum or minimum price. While the model bill doesn’t require any particular restriction on the platforms, it has enough in it that it can look like a consumer protection bill, but what it is really doing and apparently was designed to accomplish is eliminate an artist’s a ability to set prices.

ALEC is serious about violations of the act, including civil penalties. Their model ticketing legislation can be enforced by both the Federal Trade Commission and state attorneys general. Penalties can include fines of up to $15,000 per day of violation and $1,000 per event ticket advertised or sold. One problem with the model bill is that it appropriates jurisdiction already available to federal agencies like the FTC which is already failing to enforce the existing BOTS Act and other property theft laws.

The main targets seem to be Stubhub’s competitors like “Primary Ticket Merchants,” These are the original sellers of event tickets, such as event organizers or venues. “Secondary Ticket Merchants” may also be prosecuted as well as individuals.

We continue to study the proposed model legislation, but I tend to agree with Stephen Parker (NIVA) and Kevin Erickson (Future of Music) on my Artist Rights Institute panel in DC yesterday. The better model bill may be their bill passed in Maryland, recently signed into law by Maryland governor Wes More.

Key differences between Maryland and the ALEC bill I could spot:

  • Scope of Penalties: The Maryland bill specifies fines for speculative ticket sales, while the ALEC bill includes broader penalties for various violations.
  • Refund Policies: The Maryland bill explicitly requires refunds for counterfeit tickets, canceled events, or mismatched tickets, whereas the ALEC bill focuses more on transparency and restrictive practices.
  • Study on Resale Impact: The Maryland bill includes a provision for studying the impact of resale price caps, which is not present in the ALEC bill.

    It appears that the Live Event Ticketing Consumer Protection & Reform Act will be introduced at the ALEC meeting on December 5, 2024. This is where ALEC members, including state legislators and private sector representatives, will discuss and vote on the model policy. 

    Watch this space.
by Trichordist

SHOW ME THE CREATOR – Transparency Requirements for AI Technology: Speaker Update for Nov. 20 @ArtistRights Symposium at @AmericanU @KogodBiz in Washington DC

We’re pleased to announce more speakers for the 4th annual Artist Rights Symposium on November 20, this year hosted in Washington, DC, by American University’s Kogod School of Business at American’s Constitution Hall, 4400 Massachusetts Avenue, NW, Washington, DC 20016.  The symposium is also supported by the Artist Rights Institute and was founded by Dr. David Lowery, Lecturer at the University of Georgia Terry College of Business.

The four panels will begin at 8:30 am and end by 5 pm, with lunch and refreshments. More details to follow. Contact the Artist Rights Institute for any questions.

Admission is free, but please reserve a spot with Eventbrite, seating is limited! (Eventbrite works best with Firefox)

Keynote: Graham Davies, President and CEO of the Digital Media Association, Washington DC.  Graham will speak around lunchtime.

We have confirmed speakers for another topic! 

SHOW ME THE CREATOR – Transparency Requirements for AI Technology:

Danielle Coffey, President & CEO, News Media Alliance, Arlington, Virginia
Dahvi Cohen, Legislative Assistant, U.S. Congressman Adam Schiff, Washington, DC
Ken Doroshow, Chief Legal Officer, Recording Industry Association of America, Washington DC 

Moderator: Linda Bloss-Baum, Director of the Kogod School of Business’s Business & Entertainment Program

Previously announced:

THE TROUBLE WITH TICKETS:  The Economics and Challenges of Ticket Resellers and Legislative Solutions:

Kevin Erickson, Director, Future of Music Coalition, Washington DC
Dr. David C. Lowery, Co-founder of Cracker and Camper Van Beethoven, University of Georgia
  Terry College of Business, Athens, Georgia
Stephen Parker, Executive Director, National Independent Venue Association, Washington DC
Mala Sharma, President, Georgia Music Partners, Atlanta, Georgia

Moderator:  Christian L. Castle, Esq., Director, Artist Rights Institute, Austin, Texas

by Trichordist Editor

Optimism is Contagious, Too: @nivassoc’s #SaveOurStages Included in COVID Stimulus–Update

Guest post by Chris Castle

Thanks to the hard work of the National Independent Venue Association and their allies, it looks like some stimulus relief is finally coming to small venues, theater operators, bars and restaurants. The NIVA effort began with the  Save Our Stages Act that authorizes the Small Business Administration (SBA) to make grants to eligible live venue operators, producers, promoters, or talent representatives to address the economic effects of the pandemic on certain live venues. Save Our Stages will be included in the new COVID stimulus bill. The stimulus bill text was released yesterday (Dec 21) and was voted on last night by both the House of Representatives and the Senate in Washington, DC.

SOS Act authorizes the Small Business Administration to make (1) an initial grant of up to $12 million dollars to an eligible operator, promoter, producer, or talent representative; and (2) a supplemental grant that is equal to 50% of the initial grant. An initial grant must be used for costs incurred between March 1, 2020, and December 31, 2020, but a supplemental grant may be used for expenses incurred through June 30, 2021. I haven’t seen the final language of the COVID stimulus bill, but I would imagine it will be carried over.

Many people pulling together have helped to deliver a miraculous Christmas present for music cities like Austin, Texas and the country. The bi-partisan Save Our Stages Act was carried by two members of the huge Texas Congressional delegation, Senator John Cornyn and Austin Representative Roger Williams alongside their outstanding colleagues Senator Amy Klobuchar and Representative Peter Welch. As we saw in the CLASSICS Act and later in the Music Modernization Act, Senator Cornyn is a strong advocate for the Texas music industry which needs him more than ever.

We also have to thank Governor Greg Abbott and the Governor’s Texas Music Office for their efforts in getting SOS passed and in supporting the local music economy–tireless is an overused word, but the Governor has never forgotten Texas venues in the State’s plans to open in the middle of the 25/8 whole of government response to the pandemic. I’m sure there are many others to thank in many other states and cities, but I know these folks have been white-knuckling the express train for months.

The lobbying effort to pass SOS was a heartening example of our business pulling together with the artist community in the vanguard. That extensive lobbying effort led by NIVA highlighted the importance of live music and music tourism to the local economies of cities across the country. I don’t know if it’s even possible to measure the global economic impact of the lockdown approach on our business, but given the pre-COVID economic impact of the festival business alone, it’s got to be over a $1 trillion loss. As Universal’s Michael Nash said at the University of Georgia Artist Rights Symposium earlier this year, the label was very concerned about keeping live music alive even though labels might not be directly involved. According to MusicAlly, Nash said “The reality is that the health and welfare of our artists is central to everything we do, and so we do have a stake in what’s happening in the broader ecosystem.” That view was reflected in the broad support for SOS from RIAA and other industry groups as well as Universal’s commitment to major investments in live music destination hotels.

It appears that the limitation on liability for businesses like venues that reopen is not going to make it into the stimulus bill. That’s unfortunate because the liability issue is a critical piece, and the situation cries out for a federal solution when there’s a lawyer behind every cough. You may ask why such a crucial aspect of reopening is still a question mark at this late hour? Rep. Stephanie Murphy (D-Fla.), a member of the bipartisan Problem Solvers Caucus, summed it up: “I am frustrated to be part of an institution that is so dysfunctional that it doesn’t even work until the last minute.” Well, frankly, no surprise there. The liability issue will have to be dealt with in the new Congress.

The question has always been if you lock down the venues without protecting that investment, will we have an live music infrastructure to reopen? Austin is an all-too-perfect example. We have no idea what Austin will look like when we get past the pandemic. SOS is too late to save Margin Walker and many others. But with this cash infusion we have a better chance that post-pandemic Austin will bear some resemblance to what it was and can hopefully help get some people back on their feet in Austin and around the country, which is the point. The team is moving in the right direction and will attract others. Universal’s investment in the future is an example of leadership and optimism for the survival of our live music venues and all the wonderful people who run them. Optimism is also contagious, and is more likely to accelerate with Save Our Stages.

The good news is the bad news is wrong–our work is not over, but we live to fight another day–or another 300 days. And that is a Christmas miracle in many households.

Here is the press release from NIVA:

Save Our Stages Act just passed as part of the COVID-19 Relief Bill! 

Thank you for helping to #SaveOurStages! You responded in an overwhelming fashion. NIVA thanks those across the country who sent 2.1 million emails to their elected officials expressing their support for the Save Our Stages Act. All 535 Congresspeople heard from their constituents through SaveOurStages.com. Without your support and continued attention, we could not have accomplished this goal.

Our gratitude also extends to Sen. John Cornyn (R-TX) and Sen.Amy Klobuchar (D-MN) in the Senate, Rep. Peter Welch (D-VT) and Rep. Roger Williams (R-TX) in the House, champion leader Chuck Schumer (D-NY), and 230 bipartisan cosponsors in Congress.

The Save Our Stages Act will provide emergency relief to independent venues and promoters that have been devastated by the pandemic’s shutdown. This legislation will enable these mom-and-pop businesses to hold on until it’s safe to gather, reopen fully, and once again return to serving as the economic engines for their communities. Read NIVA’s full statement and thanks here. 

The legislation provides critical help to shuttered businesses by providing a grant equal to 45% of gross revenue from 2019, with a cap of $10 million per entity. This grant funding will ensure recipients can stay afloat until reopening by helping with expenses like payroll and benefits, rent and mortgage, utilities, insurance, PPE, and other ordinary and necessary business expenses.

WHAT’S NEXT

NIVA hopes to work with the Small Business Administration to ensure the emergency relief is dispersed as Congress intended, that the instructions and process to apply for grants ensure that the process is implemented accurately, fairly and as expediently as possible.

Since it could take many weeks, even months for the funding to flow, the NIVA Emergency Relief Fund, with The Giving Back Fund as its 501(c)3 fiscal sponsor, continues to raise money to assist the venues at greatest risk of permanently going under as we wait for the grants to be issued. Anyone wishing to donate can do so here.

by Trichordist Editor