RTP-area local music and culture

["Clark, Chris" <CClark AT slk-law.com>]

I'm not a patent expert, but my colleagues who are say it would be pretty
easy to invalidate Clear Channel's patent - we just need for someone with
the money to fight the legal battle to step up.  Unfortunately I doubt
Kufala has the resources, but who knows?  See below...

Chris


From: http://www.mi2n.com/press.php3?press_nb=67169

KUFALA RECORDINGS CHALLENGES CLEAR CHANNEL'S LIVE MUSIC PATENT AS A "CLEAR"
EXAMPLE OF TRAMPLING THE LITTLE GUY

Los Angeles, (May 27, 2004)- Recent headlines report that corporate mega
giant Clear Channel Entertainment has announced they have purchased a patent
making it illegal for any band to record their own live show, and sell that
recording day of show at the venue, unless the band pays Clear Channel. Now
virtually all performing artists including bands like the Pixies, Billy
Idol, and even Bruce Springsteen run the risk that if they record their own
shows at any venue in the country, then sell the CD's that same night, Clear
Channel can and will go after the artists and make them pay. Clear Channel's
Instant Live director Steve Simon has made it very clear that, "It is a
business, and it's not going to be 'we have the patent, now everybody can
use it for free.'"

The "David" to Clear Channel's "Goliath" is independent live recording label
Kufala Recordings. Led by label president, Brady Lahr, an outspoken champion
of the 'indie artist', Kufala actually stands the most to gain by Clear
Channel's outrageous assertion. Kufala Recordings provides a major loophole
for fans and artists who do not want to be manipulated and controlled by
Clear Channel Entertainment. Through Kufala, fans can place orders at the
venue and the product is delivered within 2 weeks. Kufala's releases are
multi-track live mixes recorded at the show, that have been studio mastered
and creatively approved by the artist--most albums are double disc sets and
all come in a sleekly designed eco-friendly sleeve, each featuring unique
artwork. These high quality 'authorized bootlegs' are also available for
download on all major music sites from I-tunes to Net Music, an independent
digital music distributor.

Lahr explains, "Unlike the Clear Channel model of recording and burning CDs
at the venue, we simply record the music, take it back to our studio for a
proper mix and master, then ship the live show recordings out to our artist'
s fans. Fans place CD orders at the venue before, during and after the show.
They know they will be getting a great recording and that the artist has
approved the master. They also know that the band actually owns the
recording and will be paid for sure. As artists and fans begin to figure out
just how evil the Clear Channel patent is, our business will open up even
faster."

Kufala has drawn a fighting line in the sand and is now calling on
independent artists and labels as well as artist organizations to challenge
Clear Channel's patent and its grave monopolistic implications in the music
industry. Kufala, a "David" among entertainment industry "Goliaths" is now
the only label with the ability to give artists a real alternative to Clear
Channel. Kufala and other leaders in the music industry believe that the
antitrust implications of Clear Channel's live recording patent are far
reaching. "Clear Channel Claims to own the patent but it will most likely be
struck down in court at the first law suit. Lawmakers need to take heed
because in fact, Clear Channel is really using their monopoly in the market
to powerfully restrain trade above and beyond the patent issue," explains
Lahr. The Kufala business model is not directly affected by Clear Channel's
recent patent however Kufala has experienced first hand Clear Channel's
ability to restrain trade when they barred Kufala from recording at one of
their venues-a restrain which occurred regardless of the fact that the venue
did not have recording capability not to mention that the artist, their
major label, and a non Clear Channel affiliate Radio Station all requested
Kufala's Services.

Lahr is making it known loud and "clear" to every label and artist that
Kufala offers the definitive alternative to Clear Channel's claim to a
monopoly on live show recordings, with their own 'Authorized Bootlegs
System.' Jason Pinsky, another principal at Kufala points out, "We may be
the little independent guy here but Clear Channel is laying claim to be able
to control an artist's ability to record and sell their music at their own
shows. This is the most outrageous example of Clear Channel's monopoly in
the music industry yet, especially since Clear Channel has already taken
over all the major outdoor venues and most of the radio stations and related
play lists. Next Clear Channel will claim it has a patent on allowing
artists to sing in their own showers!"


-----Original Message-----
From: alex verhoeven [mailto:alex AT webslingerZ.com] 
Sent: Friday, May 28, 2004 1:44 PM
To: ch-scene AT lists.ibiblio.org
Subject: more clear channel insanity


http://www.rollingstone.com/news/story?id=6066617&pageid=rs.Home&pageregion=
single1&rnd=1085518316199&has-player=true

In the past few years, fans leaving some concerts have discovered a souvenir
far better than a T-shirt: a live recording of the show they just attended.
Bands including the Allman Brothers, moe. and Billy Idol have sold instant
concert discs, and the Pixies and the Doors plan to launch similar programs
this summer. The recording-and-burning company DiscLive estimated on April
12th that it would gross $500,000 selling live discs this spring alone.

But in a move expected to severely limit the industry, Clear Channel
Entertainment has bought the patent from the technology's inventors and now
claims to own the exclusive right to sell concert CDs after shows. The
company, which is the biggest concert promoter in the world, says the patent
covers its 130 venues along with every other venue in the country.

"We want to be artist-friendly," says Steve Simon, a Clear Channel executive
vice president and the director of Instant Live. "But it is a business, and
it's not going to be 'we have the patent, now everybody can use it for
free.'"

Artists net about ten dollars for every twenty- to twenty-five-dollar
concert CD that's sold, no matter which company they use. But with Clear
Channel pushing to eliminate competition, many fear there will be less money
and fewer opportunities to sell live discs. "It's one more step toward
massive control and consolidation of Clear Channel's corporate agenda," says
String Cheese Incident manager Mike Luba, who feuded with Clear Channel last
year after promoters blocked the band from using CD-burning equipment.

The Pixies, who are booking a fall reunion tour with several probable Clear
Channel venues, say Clear Channel has already told them DiscLive can't burn
and sell CDs on-site. "Presuming Clear Channel's service and product are of
equal quality, it may be best to feed the dragon rather than draw swords,"
says Pixies manager Ken Goes. "Still, I'm not fond of doing business with my
arm twisted behind my back."

Clear Channel doesn't plan to stop Phish, Pearl Jam, the Who or other bands
that make live recordings available days after the show. It has also granted
one-dollar licenses to a few up-and-coming bands to record and sell instant
CDs of their own shows. But Clear Channel executives maintain that they have
the right to stop anyone who tries to infringe on the patent. Many say this
strategy prevents inventors from jumping into a marketplace and creating
further innovation. "We'd like to see this industry opened up to everybody,"
says Erik Stubblebine, founder and vice president of Hyburn, a Phoenix
company that has sold instant CDs for dozens of concerts in the past three
years. "They're trying to squeeze us."

the patent in question:

http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=/net
ahtml/search-bool.html&r=1&f=G&l=50&co1=AND&d=ptxt&s1=6,614,729,&OS=6,614,72
9,&RS=6,614,729,


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