String Cheese Incident sues Ticketmaster
08-08-03, 10:42 AM
#1
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String Cheese Incident sues Ticketmaster
I wish them (SCI) luck. It would be nice for Ticketmaster to be weakened a little and maybe have a competing company enter the market, thus lowering prices for consumers.
http://www.courttv.com/people/2003/0...master_ap.html
http://www.courttv.com/people/2003/0...master_ap.html
Band 'The String Cheese Incident' sues Ticketmaster for monopolizing market
DENVER (AP) — A Boulder-based company that sells concert tickets for The String Cheese Incident has filed a lawsuit against Ticketmaster alleging the ticket giant unfairly monopolizes the market.
The lawsuit by SCI Ticketing, filed Wednesday in U.S. District Court, alleges Ticketmaster has stopped allowing concert venues and promoters to release blocks of tickets to it and some other ticketing companies. The company alleges the move violates federal antitrust laws.
Ticketmaster spokeswoman Kandus Simpson said the company doesn't comment on pending litigation. A publicist for SCI Ticketing, also known as String Cheese Incident Ticketing LLC, said she couldn't discuss the lawsuit.
SCI Ticketing was formed in 1998 as a partnership between the jam band and Madison House, a management and booking agency in Boulder. The band has a fan base similar to Phish and the Grateful Dead, with many fans following them around the country and attending multiple concerts at each location.
According to the lawsuit, Ticketmaster has gained market control through exclusive deals with concert promoters and venues. The company is accused of selectively enforcing such agreements, allowing some ticketing services to obtain and sell up to 25 percent of a concert's available tickets while limiting SCI Ticketing to 8 percent or less.
In order to sell tickets, SCI said it must comply with certain Ticketmaster conditions, such as charging fans a fee to belong to a band's fan club.
The lawsuit seeks unspecified damages and asks that Ticketmaster end its alleged exclusive deals.
DENVER (AP) — A Boulder-based company that sells concert tickets for The String Cheese Incident has filed a lawsuit against Ticketmaster alleging the ticket giant unfairly monopolizes the market.
The lawsuit by SCI Ticketing, filed Wednesday in U.S. District Court, alleges Ticketmaster has stopped allowing concert venues and promoters to release blocks of tickets to it and some other ticketing companies. The company alleges the move violates federal antitrust laws.
Ticketmaster spokeswoman Kandus Simpson said the company doesn't comment on pending litigation. A publicist for SCI Ticketing, also known as String Cheese Incident Ticketing LLC, said she couldn't discuss the lawsuit.
SCI Ticketing was formed in 1998 as a partnership between the jam band and Madison House, a management and booking agency in Boulder. The band has a fan base similar to Phish and the Grateful Dead, with many fans following them around the country and attending multiple concerts at each location.
According to the lawsuit, Ticketmaster has gained market control through exclusive deals with concert promoters and venues. The company is accused of selectively enforcing such agreements, allowing some ticketing services to obtain and sell up to 25 percent of a concert's available tickets while limiting SCI Ticketing to 8 percent or less.
In order to sell tickets, SCI said it must comply with certain Ticketmaster conditions, such as charging fans a fee to belong to a band's fan club.
The lawsuit seeks unspecified damages and asks that Ticketmaster end its alleged exclusive deals.
08-08-03, 03:38 PM
#4
DVD Talk Platinum Edition
SCI Ticketing is absolutely the best ticketing agency to deal with in the concert industry, period. They're timely and responsive to questions and concerns. Pretty much everything Ticketmaster isn't.
Hope they win, but bands don't really have a good track record taking on Ticketmaster...remember Pearl Jam's futile crusade against the company years ago?
Hope they win, but bands don't really have a good track record taking on Ticketmaster...remember Pearl Jam's futile crusade against the company years ago?
08-08-03, 11:15 PM
#8
DVD Talk Godfather
No kidding, who is SCI? If a big band like PJ can't touch em nothing will. Except maybe Bill Gates.
Anyway, is there anyone that can honestly say they like ticketmaster?
Anyway, is there anyone that can honestly say they like ticketmaster?
08-08-03, 11:29 PM
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I -Hate- Ticketmaster so any flies buzzing it's ugly head...successful or not is a GOOD THING to me. 
08-09-03, 03:06 AM
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Yesterday I drove 45 miles to buy some concert tickets from the venue, rather than giving even more money than I spent on gas doing that, to Ticketmaster.
08-09-03, 09:30 AM
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Originally posted by Michael Corvin
No kidding, who is SCI? If a big band like PJ can't touch em nothing will.
No kidding, who is SCI? If a big band like PJ can't touch em nothing will.
Pearl Jam may have sold a ton of records but I'd be willing to bet that SCI has sold more concert tickets... They're always on the road and have been for the better part of a decade.
If SCI can stir the pot even a little, it's a job well done. Like you say, nobody likes Ticketmaster. Maybe the time is right now.
< smiley please.
08-09-03, 11:02 AM
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Originally posted by Giantrobo
I -Hate- Ticketmaster so any flies buzzing it's ugly head...successful or not is a GOOD THING to me.
I -Hate- Ticketmaster so any flies buzzing it's ugly head...successful or not is a GOOD THING to me.
08-10-03, 10:09 AM
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I was looking in my newspaper today, and what would you know, these String Cheese fella's are coming to my town. I think I might go see them, even though I've not heard one note of thier music, what the heck. Funny thing is, guess who's selling the tickets to this show. Yep, Ticketbastard
08-11-03, 04:48 PM
#15
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Both parties have commented on the suit. SCI has actually pissed Ticketmaster off enough that they're breaking the traditional "we don't comment on lawsuits" rule. It's funny to hear the company try to turn itself into the poor, downtrodden underdog...
From Jambands.com:
From Jambands.com:
String Cheese Incident vs. Ticketmaster: Both Sides Comment; Ticketmaster Threatens Countersuit
Both String Cheese Incident and Ticketmaster released statements today regarding the lawsuit filed last week by SCI Ticketing, claiming that Ticketmaster is monopolizing the ticketing industry. Although Ticketmaster generally does not comment on legal issues prior to court hearings, the corporation issued the following statement earlier today:
“While it has been our company policy to not comment on pending litigation, SCI Ticketing has so distorted this issue in its own public statements that we feel compelled to clarify the record. One thing is clear, however: Ticketmaster's contracts and market conduct are legal and proper.
"Earlier this year a Federal Court dismissed a similar lawsuit brought against Ticketmaster. The claims that have been asserted by SCI Ticketing in this new lawsuit likewise lack merit and we are confident that they will also be dismissed after all the relevant facts are established. Ticketmaster competes for the exclusive right to sell tickets on behalf of venues and promoters. We are awarded those contracts in exchange for providing our clients with turnkey ticketing solutions to help them best sell tickets. These solutions include, but are not limited to: a comprehensive and industry leading technology infrastructure, a multi-access distribution network, box office and season ticket management systems, marketing support, customer service and access control.
"SCI Ticketing complains that it is being denied access to tickets that it wants to sell for a profit on its web site. Ticketmaster has always recognized the practice of allowing artists a meaningful allocation of tickets to give away or sell through legitimate fan clubs. These arrangements are always in cooperation with Ticketmaster's clients and in accordance with our client contracts. The allocation of fan club tickets in excess of historical reasonable levels flies in the face of our contractual guidelines with our clients. By demanding very large allocations of tickets, SCI has attempted to break valid contracts for its own self-promotion and monetary gain. This lawsuit is not about artist's rights; it's about money. SCI and its ticketing company are trying to step in for a 'free ride' on the many benefits and services Ticketmaster provides it clients. SCI essentially wants to skim the best, most easily sold tickets, and leave Ticketmaster and its clients with the job of selling the rest. This is in spite of the fact that Ticketmaster has a contract granting them the privilege of selling their tickets on an exclusive basis.
"SCI has repeatedly threatened Ticketmaster's clients that if they are not given an excessive number of tickets to sell by SCI Ticketing for a profit, the band would move their performance to a venue that would comply with the band's demands. SCI's ticket demands have forced Ticketmaster's clients to make an unfair choice: either breach their contracts or lose the ability to host the band's performance. SCI's unfair leveraging of its popularity to achieve its for-profit ticketing goals is both improper and illegal. SCI ticketing is free to distribute tickets on behalf of artists and their fan clubs with the understanding that they must abide by the regulations and obligations of the performance venue -- whether it's concession choices or ticketing contracts. It's a free country, SCI can make the choice of where to play, but they must respect the rights of others. Ticketmaster would prefer to resolve this matter outside of litigation, but now has no choice but to respond to the frivolous claims that have been asserted.
"Part of that response will be a countersuit by Ticketmaster against SCI Ticketing (and its founders) for intentionally interfering with Contracts and relationships in which Ticketmaster has made great investments. The issue here is whether Ticketmaster and its clients have the right to contract for ticket distributions services, or whether SCI Ticketing can free-ride on those relationships by exerting pressure on Ticketmaster's clients to breach their contractual commitments.”
Meanwhile, String Cheese Incident held a press conference at the Inter-Continental Barclay Hotel in New York City earlier today. Speakers included attorney Neil L. Glazer, who is leading the band’s legal team, bassist Keith Mosely, manager, booking agent and co-founder of Madison House Inc. Mike Luba and general manager of SCI Ticketing Jason Mastrine.
“SCI Ticketing has literally hit the wall in terms of being able to sell tickets directly to fans because of Ticketmaster’s anticompetitive practices,” Glazer said. “Our client has carved out a truly unique and successful way to do business. Unfortunately, they simply cannot compete because Ticketmaster is restricting the supply of concert tickets…Ticketmaster has entered into combinations, agreements, or conspiracies with promoters, venues and others, in restraint of trade, in violation of section 1 of the Sherman Antitrust Act…Ticketmaster has monopolized, attempted to monopolize, or abused its monopoly power in the market for the sale of tickets to popular music concerts, in violation of section 2 of the Sherman Antitrust Act…The decision to file this lawsuit was not one taken lightly. SCI Ticketing is a very small company, and Ticketmaster is one of the behemoths of the concert industry. By filing this lawsuit, SCI Ticketing is hoping to put a stop to anticompetitive practices that harm not only innovative young companies, but also artists and consumers.”
“For bands like The String Cheese Incident, who depend on heavy touring and lasting fan relationships in order to succeed, services like direct artist-to-fan ticketing are essential,” said Luba. “It allows fans to enjoy the complete String Cheese experience, from beginning to end. This involves giving the fans unprecedented attention for the essential part they play in the artists’ career, and being able to offer fans SCI performances in high quality venues and with affordable prices. Today, cultivating an artists’ fan base through such things as touring, creative internet communications, and how they sell tickets are some of the ways for bands to survive outside the music industry’s corporate machine. Bands like The String Cheese Incident rely on these tools for survival…It’s not just about artists wanting to control their own destiny and providing better service to their fans, it’s also an economic issue. For many artists in today’s music industry, touring has become a much more important source of revenue than record sales because constant touring encourages community building and fan loyalty, which promotes a sustainable career.The music industry is suffering right now, but there is no reason that the artists and their fans have to go down with it. We hope that the positive ramifications of filing this lawsuit will reach well beyond just The String Cheese Incident and their fans, and benefit everyone.”
“We are not saying Ticketmaster doesn’t have a place in the ticketing business, but we have a different philosophy of doing business, one that caters more directly to our fans,” noted Mastrine. “Now, for the first time in our company’s history, Ticketmaster is preventing us from acquiring the same reasonable ticket allocations we used to get from promoters and venues. There’s room for everyone in the mix.”
“It’s been a huge commitment – our touring and reinvesting and sacrifice,” said Moseley. “We hope this action sends the message loud and clear that monopolies like Ticketmaster cannot and will not be the only game in town; our fans deserve more than that.”
Both String Cheese Incident and Ticketmaster released statements today regarding the lawsuit filed last week by SCI Ticketing, claiming that Ticketmaster is monopolizing the ticketing industry. Although Ticketmaster generally does not comment on legal issues prior to court hearings, the corporation issued the following statement earlier today:
“While it has been our company policy to not comment on pending litigation, SCI Ticketing has so distorted this issue in its own public statements that we feel compelled to clarify the record. One thing is clear, however: Ticketmaster's contracts and market conduct are legal and proper.
"Earlier this year a Federal Court dismissed a similar lawsuit brought against Ticketmaster. The claims that have been asserted by SCI Ticketing in this new lawsuit likewise lack merit and we are confident that they will also be dismissed after all the relevant facts are established. Ticketmaster competes for the exclusive right to sell tickets on behalf of venues and promoters. We are awarded those contracts in exchange for providing our clients with turnkey ticketing solutions to help them best sell tickets. These solutions include, but are not limited to: a comprehensive and industry leading technology infrastructure, a multi-access distribution network, box office and season ticket management systems, marketing support, customer service and access control.
"SCI Ticketing complains that it is being denied access to tickets that it wants to sell for a profit on its web site. Ticketmaster has always recognized the practice of allowing artists a meaningful allocation of tickets to give away or sell through legitimate fan clubs. These arrangements are always in cooperation with Ticketmaster's clients and in accordance with our client contracts. The allocation of fan club tickets in excess of historical reasonable levels flies in the face of our contractual guidelines with our clients. By demanding very large allocations of tickets, SCI has attempted to break valid contracts for its own self-promotion and monetary gain. This lawsuit is not about artist's rights; it's about money. SCI and its ticketing company are trying to step in for a 'free ride' on the many benefits and services Ticketmaster provides it clients. SCI essentially wants to skim the best, most easily sold tickets, and leave Ticketmaster and its clients with the job of selling the rest. This is in spite of the fact that Ticketmaster has a contract granting them the privilege of selling their tickets on an exclusive basis.
"SCI has repeatedly threatened Ticketmaster's clients that if they are not given an excessive number of tickets to sell by SCI Ticketing for a profit, the band would move their performance to a venue that would comply with the band's demands. SCI's ticket demands have forced Ticketmaster's clients to make an unfair choice: either breach their contracts or lose the ability to host the band's performance. SCI's unfair leveraging of its popularity to achieve its for-profit ticketing goals is both improper and illegal. SCI ticketing is free to distribute tickets on behalf of artists and their fan clubs with the understanding that they must abide by the regulations and obligations of the performance venue -- whether it's concession choices or ticketing contracts. It's a free country, SCI can make the choice of where to play, but they must respect the rights of others. Ticketmaster would prefer to resolve this matter outside of litigation, but now has no choice but to respond to the frivolous claims that have been asserted.
"Part of that response will be a countersuit by Ticketmaster against SCI Ticketing (and its founders) for intentionally interfering with Contracts and relationships in which Ticketmaster has made great investments. The issue here is whether Ticketmaster and its clients have the right to contract for ticket distributions services, or whether SCI Ticketing can free-ride on those relationships by exerting pressure on Ticketmaster's clients to breach their contractual commitments.”
Meanwhile, String Cheese Incident held a press conference at the Inter-Continental Barclay Hotel in New York City earlier today. Speakers included attorney Neil L. Glazer, who is leading the band’s legal team, bassist Keith Mosely, manager, booking agent and co-founder of Madison House Inc. Mike Luba and general manager of SCI Ticketing Jason Mastrine.
“SCI Ticketing has literally hit the wall in terms of being able to sell tickets directly to fans because of Ticketmaster’s anticompetitive practices,” Glazer said. “Our client has carved out a truly unique and successful way to do business. Unfortunately, they simply cannot compete because Ticketmaster is restricting the supply of concert tickets…Ticketmaster has entered into combinations, agreements, or conspiracies with promoters, venues and others, in restraint of trade, in violation of section 1 of the Sherman Antitrust Act…Ticketmaster has monopolized, attempted to monopolize, or abused its monopoly power in the market for the sale of tickets to popular music concerts, in violation of section 2 of the Sherman Antitrust Act…The decision to file this lawsuit was not one taken lightly. SCI Ticketing is a very small company, and Ticketmaster is one of the behemoths of the concert industry. By filing this lawsuit, SCI Ticketing is hoping to put a stop to anticompetitive practices that harm not only innovative young companies, but also artists and consumers.”
“For bands like The String Cheese Incident, who depend on heavy touring and lasting fan relationships in order to succeed, services like direct artist-to-fan ticketing are essential,” said Luba. “It allows fans to enjoy the complete String Cheese experience, from beginning to end. This involves giving the fans unprecedented attention for the essential part they play in the artists’ career, and being able to offer fans SCI performances in high quality venues and with affordable prices. Today, cultivating an artists’ fan base through such things as touring, creative internet communications, and how they sell tickets are some of the ways for bands to survive outside the music industry’s corporate machine. Bands like The String Cheese Incident rely on these tools for survival…It’s not just about artists wanting to control their own destiny and providing better service to their fans, it’s also an economic issue. For many artists in today’s music industry, touring has become a much more important source of revenue than record sales because constant touring encourages community building and fan loyalty, which promotes a sustainable career.The music industry is suffering right now, but there is no reason that the artists and their fans have to go down with it. We hope that the positive ramifications of filing this lawsuit will reach well beyond just The String Cheese Incident and their fans, and benefit everyone.”
“We are not saying Ticketmaster doesn’t have a place in the ticketing business, but we have a different philosophy of doing business, one that caters more directly to our fans,” noted Mastrine. “Now, for the first time in our company’s history, Ticketmaster is preventing us from acquiring the same reasonable ticket allocations we used to get from promoters and venues. There’s room for everyone in the mix.”
“It’s been a huge commitment – our touring and reinvesting and sacrifice,” said Moseley. “We hope this action sends the message loud and clear that monopolies like Ticketmaster cannot and will not be the only game in town; our fans deserve more than that.”
