CMU Daily 28.11.17: CMA to crack down on ticket resellers, Walter Becker estate responds in Steely Dan dispute

UK's Competition and Markets Authority to crack down on ticket resellers
The UK's Competition And Markets Authority has announced that it intends to take action against secondary ticketing websites suspected of breaking consumer rights laws - through the courts, if necessary.

As previously reported, the CMA launched an "enforcement investigation" into secondary ticketing in December last year. At the time, the regulatory body said that it intended to "consider whether, in its view, both the businesses selling tickets and the secondary ticketing platforms advertising them are failing to provide the full range of information in breach of the law and, if so, take enforcement action".

That "full range of information" includes the transparency obligations on ticket resellers laid out in the 2015 Consumer Rights Act, which campaigners have long argued are not being adhered to by resellers. These include stating the face value of the tickets being sold, information on the seating area, and any restrictions that apply - such as if the tickets are likely to be cancelled if it is discovered that they have been resold.

In a statement this morning, the CMA said that it is now raising concerns with a number of secondary ticketing sites about failure to comply with these rules. Also noting past commitments made by the big ticket resale platforms, it added that it will also be "acting to address a failure by one website to comply fully with formal commitments it had previously given to improve the information provided about tickets advertised on its site".

As well as this, the body will be expanding the scope of the existing investigation in order to address further concerns raised over the last year. These are pressure selling - misleading customers about the availability of tickets in order to rush them into a decision; speculative selling - offering tickets for sale that the seller does not actually have to sell; difficulties customers have found in claiming refunds; and concerns over primary sellers putting tickets on secondary sites without making this clear to consumers.

Commenting on today's announcement, CMA chief executive Andrea Coscelli said: "Secondary ticketing websites can offer an important service - by allowing people the chance to buy tickets at the last minute or giving them a chance to re-sell tickets they can no longer use. But our investigation has identified concerns that the law protecting consumers is being broken".

"Thousands of people use these sites and they have a right to know if there is a risk that they will be turned away at the door, who they've bought their ticket from or exactly what seat at the venue they're getting for their money", he continued. "We are putting our concerns to these websites and will be requiring the changes necessary to tackle them. We will use the full range of our powers to get the right outcome for these sites' customers - including taking action through the courts if needed".

Welcoming all this, co-chair of the All Party Parliamentary Group On Ticket Abuse, Sharon Hodgson MP, said this morning: "It is welcome news that the CMA are now considering enforcement action against the resale platforms - who we know have repeatedly flouted the law of the land - especially after the many years of MPs and campaigners saying just that".

"What is incredibly interesting from this announcement is the fact that the CMA have widened the scope of their investigations from their original terms after they have seen just how broken this market is and the further action needed to fix it", she went on. "This is positive news from an agency who is ultimately instructed to protect consumers from companies disregarding their rights and will be an important step in the right direction to finally put fans first in this market, once and for all".

Meanwhile, the anti-touting campaign FanFair said in a statement: "Today's CMA announcement that they will take enforcement action against secondary ticketing sites justifies everything FanFair Alliance supporters have campaigned for".

"Alongside work from the Advertising Standards Authority and National Trading Standards, we are especially pleased the CMA will expand the scope of their investigation. Beyond suspected breaches of consumer protection law, we believe the largest ticket resale platforms are riddled with bad practice, including speculative ticket listings, pressure selling and collusion with large-scale ticket touts".

It concluded: "It is has taken far too long to get here, but a Sword Of Damocles now hangs over the entire secondary market. If they fail to deliver root-and-branch reforms, we expect the largest resale platforms to face significant consequences".

This all follows the announcement made by Google last week that from January it will require ticket resellers who wish to use the GoogleAds platform to adhere to new rules globally. Find out more about that on this week's episode of CMU's Setlist podcast.

BACK TO THE TOP OF THE BULLETIN

Walter Becker estate responds in Steely Dan dispute
The estate of late Steely Dan member Walter Becker has hit back at his former bandmate Donald Fagen, who recently moved to enforce a 1972 contract that would give him control of the band's business.

As previously reported, Fagen recently filed a lawsuit that explained how back in 1972 the then members of Steely Dan signed a band agreement that included a 'buy/sell' clause which meant that, if ever a member left the band or died, the other band members would have the right to buy the exiting member's stake in the business.

According to Fagen's lawsuit, only he and Becker still had a stake in said business at the time of the latter's death in September. However, Becker's estate is seemingly arguing that the 'buy/sell' agreement no longer applies, meaning it would retain a share in the band. Fagen's litigation - which says the estate wrote to him shortly after Becker's death insisting that the 'buy/sell' clause should not apply - is seeking to enforce the 1970s contract.

In a new statement, the Becker estate calls the lawsuit "unwarranted and frivolous", insists the 1972 contract is no longer in effect, and dispute's Fagen's version of events with regard to what has happened since Becker's death.

The statement begins: "We were disappointed to learn that Donald Fagen commenced a lawsuit against [the estate of] Walter Becker, his partner of 50 years, on the eve of Thanksgiving. We believe the agreement to which Mr Fagen refers in his suit - drafted 45 years ago - was not in effect at the time of Walter's death".

Hitting out at the lawsuit and Fagen himself, the statement goes on: "Mr Fagen's lawsuit, riddled with half-truths and omissions, misleadingly fails to state that the day after Walter died, Mr Fagen had his lawyer send a demand letter to Walter's estate, thus beginning a legal campaign against Walter's family immediately after his death. The misrepresentation that his widow, Ms Cioffi, initiated any litigious action is simply untrue. In our view, Mr Fagen is unfairly trying to deprive Walter's family of the fruits of their joint labours".

The estate concludes: "Since Walter's passing, we have endeavoured to achieve a compromise with Mr Fagen. We were close to a resolution with his longtime counsel who he suddenly fired. We then negotiated in good faith with replacement counsel who Mr Fagen also fired. Mr Fagen's third and current lawyer did not even attempt to contact us prior to filing a lawsuit. While we regret Mr Fagen's latest actions, we will vigorously defend against his unwarranted and frivolous case".

Responding to the response, Fagen's lawyer Skip Miller told Rolling Stone: "Mr Fagen reluctantly took this step in response to certain actions of Mr Becker's estate. The main point is that the buy/sell agreement at the heart of the suit is as valid as the day it was signed. It's something Mr Becker felt strongly about keeping in place and honouring, even during his years of illness. Mr Fagen believes Mr Becker's estate is entitled to receive all normal royalties on the songs they wrote together. But this case is about the future of the band, and we will vigorously defend the contract".

--------------------------------------------------

Teenager found guilty of plotting attack on Justin Bieber concert
A seventeen year old boy, who cannot be named for legal reasons, has been convicted of plotting a terrorist attack at a Justin Bieber concert in Cardiff a month after the bombing of an Ariana Grande show in Manchester earlier this year.

Described as being of white British heritage, a police investigation found that the boy had become interested in the so-called Islamic State in the summer of 2016. He was taken into custody on 30 Jun this year, the day of the Bieber show, after police learned that he had researched the venue as the possible target of an attack. In his school bag was found a knife, a hammer and a suicide note declaring himself to be "a soldier of the Islamic State".

On his laptop investigators found IS propaganda magazines, searches in the defendant's web history seeming to research murder and possible targets for an attack, and a Jihad-related Instagram account which he had been operating. He also admitted to communicating with someone on Instagram who had told him that he needed to carry out an attack in order to get to paradise.

In court, the defendant claimed that, while he was interested in gory things, he had only been researching carrying out an attack because of an interest as to how someone would go about such a thing, adding that he never intended to actually harm anyone. He also denied believing in Islam.

As well as one count of 'engaging in conduct in preparation for terrorist acts', he was also found guilty of two counts of encouraging terrorism and two of possessing terrorist information.

In a statement, Sue Hemming of the Crown Prosecution Service said: "This teenager's behaviour over many months leaves no doubt that he intended to kill and maim as many people as possible in an attack reminiscent of the incident on Westminster Bridge"

She went on: "He was also posting extremist content online that could have encouraged others to commit terrorist acts and downloading instructions on how to carry out 'lone wolf' attacks. The CPS presented overwhelming evidence that he was prepared to die for Daesh's extremist worldview and he will now rightly face the prospect of a substantial prison sentence".

The boy will be held in custody until his sentencing on 10 Jan. The judge said that he was considering an indefinite sentence and asked for further information in order to reach his conclusion.

--------------------------------------------------

Will.i.am's company sued over headphones deal
Will.i.am's i.am+ company is reportedly being sued over allegations it failed to pay for millions of dollars of wireless headphones it ordered.

According to The Blast, FIH Mobile, a subsidiary of Chinese manufacturing firm Foxconn, has filed a lawsuit against i.am+. It claims that Will.i.am's company hired FIH to manufacture a new line of headphones it had devised, putting in an order for $3.4 million worth of them.

However, says the lawsuit, i.am+ has failed to come forward with any of this money. FIH says it decided to go legal when it "became clear [that i.am+] did not have sufficient funding".

FIH is seeking the full $3.4 million payment, pushing for the courts to sanction a payment plan in order to ensure that the money comes through.

It was announced earlier this year that FIH Mobile had made losses of $196.5 million in the first half of 2017. However, the company has said that it expects to return to growth when results for the latter half of the year are announced early next year.

BACK TO THE TOP OF THE BULLETIN

Downtown signs Goldie
The UK wing of Downtown Music Publishing has signed a new worldwide publishing deal with Goldie, covering all of his past and future music. The deal also includes catalogues owned by the producer's Metalheadz label.

"I've always had this really weird feeling, from a spiritual level, that everything I've ever built has led to this moment", says Goldie, mixing up his tenses to 'Inception' levels. "After the 25 years I've had in music, I've finally found a home from home, where I can actually create a landscape which creates an even better portrait in the type of architecture that I've always desired. I think Downtown's given me that. It gives me the kind of architecture that I need to build these new shapes moving forward".

I need a sit down after that quote, but there's no time because here's Downtown UK's Head Of A&R Daniel Lloyd Jones with another: "I have so much respect for Goldie and all he has achieved. We are so proud to have him join Downtown, not just for his immense writing ability but also the wisdom he brings with him. He is a genuine polymath and was a cultural influencer long before the dawn of social media. He has worked with everyone from David Bowie and Noel Gallagher to Skepta and Jessie Ware".

Goldie's manager Karl Nielson adds: "Passion, enthusiasm, and creativity go a long way with us, Dan, and the Downtown team have that in abundance, and we are looking forward to creating new magic with them".

The Goldie deal quickly follows another worldwide agreement secured by Downtown earlier this month with the rapper Kano.

BACK TO THE TOP OF THE BULLETIN

Royalty Exchange opens up new Royalty Flow business to investors
Royalties market place Royalty Exchange yesterday announced that investors can now put themselves forward to participate in the firm's new sister business Royalty Flow.

As previously reported, Royalty Exchange is an online royalty marketplace that allows songwriters, musicians and other music right owners to auction off portions of their future royalties. It launched new sister company Royalty Flow in September so that it could itself "acquire and hold royalties from music catalogues of the world's biggest music artists", kicking things off by acquiring a stake in the royalties of Eminem producers the Bass Brothers.

It is now seeking investors to back the new business and yesterday announced that "interested investors can now place their orders for shares in the company's Regulation A+ IPO". So that sounds like fun.

The company goes on: "Royalty Flow seeks to raise at least $11 million through the IPO ... it intends to use the proceeds to acquire premium, royalty generating assets so that investors can participate directly in the growth of the music industry. The first such asset identified is the production company's master sound recording royalties from the 1999-2013 recording catalogue of hip hop superstar Eminem".

Royalty Flow's Executive Chairman Matthew Smith added: "Royalty Flow provides investors direct access to not only the growing music business, but to only the most premium, cherry picked catalogues within the music industry".

BACK TO THE TOP OF THE BULLETIN

German regulator blocks CTS Eventim's acquisition of Four Artists
Germany's competition regulator has blocked CTS Eventim from acquiring Berlin-based booking agency Four Artists over concerns about the ticketing firm's dominance in the country's live industry. Among the artists represented by Four Artists are David Guetta, James Blunt, Giggs, Chase & Status and Best Coast.

The President of Germany's Federal Cartel Office, Andreas Mundt, noted in a statement that: "CTS Eventim is already the market leader in Germany and by far the largest ticket system. In addition, it has already integrated various tour operators into its group structure in the past". Mundt's office then added that the Four Artists acquisition "would strengthen CTS's existing dominant position [in the ticketing market] thereby significantly hindering effective competition in the affected markets".

"With Four Artists, CTS Eventim would integrate a major event organiser into its group, locking additional ticket allocations of between 500,000 and one million tickets per year to its own system", it went on. "The expansion possibilities for competing ticket system providers would thereby be weakened".

The Federal Cartel Office is also currently pursuing legal action against CTS Eventim in Germany, accusing the company of abusing its position by signing exclusivity deals with promoters and such like.

Speaking to IQ, a spokesperson for CTS Eventim said that the company is considering appealing the decision to block the acquisition, which was first announced in March this year.

"We have taken note of the decision by the Cartel Office and are currently examining the grounds for said decision", they said. "We believe that the takeover of Four Artists is eligible for approval and therefore reserve the right to seek legal remedies against the ruling".

--------------------------------------------------

Blue Raincoat acquires Spar-ks
Acquisitive independent music firm Blue Raincoat has announced the acquisition of Berlin-based electronic-music-focused booking and management agency Spar-ks. The deal will see the agency merge with Blue Raincoat's existing artist management division, with Spar-ks CEO Katrin Schlotfeldt taking a new role at the company and bringing her existing roster of DJs and producers with her. It also means that Blue Raincoat will have a booking agency in its group alongside its management, label and music publishing concerns.

Blue Raincoat founders Jeremy Lascelles and Robin Millar say in a joint statement: "It was a natural fit for us to branch out into the agency business, and having got to know Katrin during the time when we both worked with [techno and house DJ] Luciano, she was our number one choice. She has great experience in the DJ and electronic music world, and has worked with some of the biggest names in this field and has built an enviable client roster with Spar-ks. We are THRILLED now to have a presence in mainland Europe and we welcome her to our company".

Schlotfeldt adds: "I feel very honoured to be working with Jeremy, Robin, and the whole team at Blue Raincoat Music. After working with them on Luciano I have always wanted to find a way to continue the relationship and grow with them. The electronic music industry is changing with some new and very exciting opportunities and we are already starting to look at ways we can explore new avenues".

BACK TO THE TOP OF THE BULLETIN

Coda, OK Go, Dappy, more

Other notable announcements and developments today...

• Booking agent Clementine Brunel has left ATC Live to join Coda. "I'm very excited", she tells IQ.

• OK Go have released their latest musical advert. This time they're hawking some printers.

• Dappy has released new track 'Trill' in which he addresses his recent court case, having money, being called a has-been, and reforming N-Dubz.

• Django Django have released new single 'In Your Beat'. Their new album, 'Marble Skies', is out on 26 Jan.

• Glassjaw have announced that they will release a new album, 'Material Control', on 1 Dec. That's this week. Here's a track from it, 'Shira'.

• Field Music have released a new track inspired by Brexit, globalisation and Madonna. 'Count It Out' is taken from the duo's new album 'Open Here', out on 3 Feb.

• Peggy Sue have released 'Slow Fade', the first single from their upcoming fifth album. They will also play The Shacklewell Arms in London on 2 Dec.

• South London rapper DeeCee has released new single, 'North & South', through Novelist's MMMYEH label.

• Check out our weekly Spotify playlist of new music featured in the CMU Daily - updated every Friday.

BACK TO THE TOP OF THE BULLETIN

Morrissey says he won't do any more interviews (I know because I saw his mouth move)
Morrissey has claimed that he will never do another interview with a print title ever again, which may be what finally kills that side of the media industry once and for all. I know that Morrissey said this - by the way - because I watched a video of him saying it. However, until you too watch that video, you should assume that I just made it up.

The singer announced his withdrawal from future interviews at a show in Chicago on Saturday, following reporting of that recent interview with German newspaper Der Speigel. The interview picked up a lot of attention because in it Morrissey defended Harvey Weinstein and Kevin Spacey, suggesting that their victims were at least somewhat to blame. He also talked up Brexit, talked down multiculturalism, and claimed that the media is a form of social engineering.

Did he say all of that though? He would say no. Speaking to the audience at Chicago's Riviera Theatre at the weekend, he said: "Let me just say this - that was the last print interview I will ever do. And unless you see the words form in my mouth and then you see the words or hear the words come out of my mouth - please, if you don't see that, I didn't say them".

We were able to put that new rule into practice the following day when a new print interview with Morrissey was published by The Sunday Times. Presumably an entirely fictional interview.

In said interview it was written once again that Morrissey had claimed that the accusations of sexual harassment against numerous entertainment industry figures were being blown out of proportion. "Often it can be just a pathetic attempt at courtship", he is quoted as saying.

"I'm sure it's horrific", it is claimed he then added. "But we have to keep everything in proportion. Do you not agree? I have never been sexually harassed, I might add".

Morrissey, as you may remember, claimed two years ago that he had been sexually assaulted by a member of staff at San Francisco International Airport during a security check. He made this claim twice via his True To You fansite.

Which either proves that the entire Sunday Times interview is made up. Or that you can't trust anything on True To You. Or that Morrissey just likes to say reactionary things and then disassociate himself from them afterwards. It could be any of the above. Or none of the above. I'm a journalist, so this entire article is probably all made up.

Indeed, given that you didn't see my mouth form any of these words, you can probably assume that nothing in this story happened and I am just a figment of your imagination.

BACK TO THE TOP OF THE BULLETIN