Forget Pirates, EMI Has a Graver Threat In Its Midst...

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Forget Pirates, EMI Has a Graver Threat In Its Midst...

Thu Jul 10, 2008 @ 04:13PM PST

Posted by Eriq Gardner

Emilogo Property rights — it's the issue that causes executives and lawyers at major record labels to toss and turn in their bed, worrying about the future of the industry. But at EMI, the issue isn't so much intellectual property. It's just damn property.

Tomorrow, the Los Angeles City Council will examine what to do about a proposed 16-story condo tower at 6230 Yucca St. EMI, owner of Capitol Studios and the Capitol Records Building that sits adjacent to the project, is sounding an alarm. First, it trotted out angry troubadours who claimed the damaged tower would damage acoustics in Capitol's famed recording studios. Now comes a press release that says a City Council approval would potentially shut down Capitol:

"If the City Council votes to approve Second Street Ventures' proposal, we may be forced to shut down the Capitol Studios operations entirely and permanently, resulting in the loss of potentially hundreds of jobs and wages and an estimated $14.2 million in annual revenues that the Studios generate for the Hollywood economy directly and indirectly from film, television and music businesses."

Friday will determine whether EMI will have to put their lawyers on this case. We imagine there might be an injunction sought if the Council isn't music-friendly. The press statement also says "The specific solutions that Second Street Ventures is proposing to mitigate the disruption to the Studios operations during construction, and on an ongoing basis, fall short of being sufficient. Their proposals are not legally binding and do not come close to covering the risk and financial losses our business will face."

Sounds like the last sentence can be applied to many threats to the music biz these days.

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The Hollywood Reporter, Esq. blog focuses on how the entertainment and media industries are impacted and influenced by the law. It is edited by Matthew Belloni with contributions from veteran legal reporter Eriq Gardner and others. Before joining The Hollywood Reporter, Belloni was a lawyer at an entertainment litigation firm in Los Angeles. He writes a column for THR devoted to entertainment law. Gardner is a New York-based writer and legal journalist. Send tips or comments to [email protected]

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