Coachella Contracts Exposed
The postponement of Coachella 2020 was a heartbreaker for so many… and recently there have been talks about cancelling the event entirely. But while attention is primarily focused on the organization and planning of America’s biggest music festival, equal attention must be given to Coachella’s restrictions on artists and performers.
An artist’s contract with music festivals such as Coachella has often been regarded as being “unnecessarily complex” and “one-sided”. Without a legal education or background in law, it is nearly impossible for artists to understand each of a contract’s clauses to its fullest. This is the case of Coachella contracts.
Specifically, Coachella’s radius clause limits an entertainer’s performance rights. In committing to the live music festival, the contract enables the owner of Coachella, AEG, to freeze the time and geographic market of a performer’s appearance. As a result, Coachella artists are being told exactly when and where they can perform for months before, during, and after the festival. So, while an invite to play at Coachella is a dream come true, in signing this Coachella contract, artists simultaneously hand away some of their basic rights.
There is no doubt that the opportunity to play at Coachella will be one of the most exciting and rewarding experiences in an artist’s career. And the worldwide exposure that comes with Coachella has the potential to bring any artist to fame overnight. However, in order to enjoy all of the benefits, a breakdown of the Coachella contract is needed, and the pros and cons of playing at the festival must be weighed.
The Hollywood Reporter’s article “Appeals Court Revives Lawsuit Over Coachella’s Restrictions on Musicians” discusses the revival of a 2018 suit accusing AEG’s Coachella contracts’ of anti-competitive behavior and an infringement of personal rights. The court ruled that the radius clause’s limitations did in fact directly victimize the promoter Soul’d Out, as its personal rights were compromised through the contract. Furthermore, the artist suffered from the potential loss of lucrative performance contracts with other artists playing at Coachella. Additionally, in signing this contract, the artist is signing away the right to play at any music festival in North America for five months leading up to Coachella and can no longer play at any “hard concerts” in South California. So, while the opportunity to play in front of a newer, larger, and more diverse audience would be any musician’s dream, the rise of these festivals can actually be doing artists more harm than good.
It is clear that these clauses can make things much more difficult for artists and can complicate the artist’s ability to schedule shows as they normally would. While this lawsuit was filed by a promoter, it’s important to understand that the promoter was backed into a corner because of the strict non-compete / radius provisions contained in the artists’ contracts with Coachella. What does this mean for you? If you sign a contract with a radius clause, there’s a good chance that you could get sued for performing at a nearby venue.
As a musician, it is imperative that you read each and every contract you are handed. Not only should you review it closely, but it is critical that you really understand what rights you may be giving up… agreeing to exclusivity or non-compete provisions could create bigger problems for you down the road. Any non-compete or exclusivity provisions should be narrowly tailored in such a way that you’re still able to work with other venues and event promoters that are not directly competing with the particular performance.
Whether you’re a local Rockstar, or whether you’re planning your first international tour, it is critical that you understand the legal impact of contracts you’re being asked to sign. You don’t have to figure this out on your own. At Kahn Media Law, we break these contracts down into something that makes sense and reflects everyone’s objectives; then, we negotiate to make sure that the agreement reflects your goals and protects your intellectual property. With the right lawyer at your side, an invite to play Coachella will be music to your ears.