Archive for April, 2015

Verizon FiOS Ads Pulled by Walt Disney Co. and Twenty-First Century Fox

Recently, it was announced that Twenty-First Century Fox and Walt Disney Co. would no longer run Verizon FiOS commercials in certain markets that advertise Verizon’s cable package, arguing that the company’s FiOS TV, a cable program that is said to be cheaper and slimmer than basic cable, violated existing agreements.

According to a news article at L.A. Biz, Verizon called the move made by the two companies, along with Comcast Corporation, an “anticompetitive tactic.” A spokeswoman for Verizon revealed to the New York Times that Disney would pull ads run for the cable program at television stations in New York including A & E and WABC, in addition to ESPN radio. In Philadelphia, the ABC affiliate pulled advertising for the FiOS custom TV stations. Fox has decided to pull the Verizon ads from WNYW, its New York affiliate, and YES, a sports cable channel.

According to another article at Reuters, Walt Disney Co. did run the Verizon ads in Pittsburgh, Boston, and Washington, D.C. last week. Disney declined to comment on the commercials, while a spokesperson for Fox told the Times that the company desired to keep the company’s discussions regarding commercials confidential.

Verizon’s FiOS Custom TV package makes it possible for customers to sign up for a basic package consisting of 36 channels; customers are also able to add on two news, sports, children’s program, or other genre-specific packages. With a cost of $55 per month, the package targets those who have chosen streaming services over cable due to cost.

On Wednesday, April 22, Disney notified Verizon via e-mail that the company would not run FiOS Custom TV ads on their channels, claiming that the ad violates contract agreements. Verizon maintains that the company, under current agreements with media companies to offer the slimmed-down service, is within its rights by giving subscribers their basic package of 36 fixed channels for the monthly charge.

Ultimately, at the bottom of the dispute is that while pay-TV providers desire to break up the large bundles of channels being offered by online companies and cable rivals at the current time, media companies are attempting to keep specific channels that are popular in the larger packages they offer in an effort to protect business.

At the time of news reports, Verizon and Disney had no comments on the pulled television ads.

The Los Angeles business attorneys at Spotora & Associates realize that the business and entertainment worlds are highly competitive, and the claims arising from television programming package agreements can be particularly complex. Whether your company is being accused of violating a contract or another entity is in breach of your agreement, contact us right away and our senior associates will identify and enforce your contractual rights to resolve the issue as efficiently as possible.

Samsung & Apple Sued by Coalition Against Distracted Driving in Connection with Smartphones and Smartwatches

Today, Samsung and Apple were sued by the Coalition Against Distracted Driving, a citizens groups supporting education of drivers against distracted driving, specifically the use of smartphones and smartwatches while driving, according to a news article at West Side Today. The group, who is said to be anticipating the risks regarding the use of the Apple Watch, is attempting to force makers of smartphones to pay $1 billion for a program designed to educate motorists regarding the dangers of distracted driving.

 

Filed on Monday, April 20th, the lawsuit also names Microsoft Corporation and Google Inc. The lawsuit claims that the Coalition Against Distracted Driving (CADD) is a group based in Los Angeles that was formed for the purpose of promoting ongoing and effective education to the public regarding the use of mobile devices while driving. Stephen Joseph, a plaintiff in the lawsuit, said he is “acting in this case in the public interest.” Joseph also states in the suit that he recognizes the potential of injury to himself caused by the “possibility of being hit by a driver who cannot see the road because he/she is using a smartphone or smartwatch.”

 

The lawsuit against the defendants claims that the use of smartphones while operating a vehicle is an “epidemic” across the nation, and cites numerous instances across the U.S. in which accidents were the fault of inattentive drivers. Specifically, one truck driver was allegedly looking on Facebook at photos of women using a Samsung Galaxy smartphone, when he killed one police officer after plowing into five police cars.

 

While the Apple Watch has not yet been made available to the public, the lawsuit claims that the watch “creates a far greater distraction than smartphones” because given the fact the watch is attached to the driver’s wrist, ignoring notifications is more difficult. In regards to teenagers, the suit claims the temptation for teens to view the notifications by the watch is “irresistible,” particularly in situations involving conversation via text.

 

According to the CADD, the $1 billion cost the group wants Samsung and Apple to pay to educate people nationwide regarding the use of smartphones and smartwatches “is a tiny fraction of profits that defendants receive from the sale of these products.”

 

At Spotora & Associates, our senior associates understand that in many cases, the products companies manufacture are open to lawsuits of this nature, lawsuits which claim the dangers of using the products in specific situations. Given advances in technology today, litigation is often difficult to avoid and regardless of your industry, the potential of a lawsuit exists. Rely on our team of skilled and experienced Los Angeles business attorneys for outstanding legal advisement and to limit your liability.

 

Disney Sued by Richard Dreyfuss Over ‘What About Bob’ Profit Participants and Auditors

More than two decades after ‘What About Bob’ came out, Richard Dreyfuss is taking Disney to court over what monies may be owed after accountants refused to take a look at Disney’s books to see what may be owed. Dreyfuss has sued Walt Disney Pictures for breach of contract and additional claims after Disney allegedly refused to let Robinson & Company perform an audit for Dreyfuss and the widow of Raymond Wagner, producer of Turner & Hooch.

 

Why will Disney not allow auditors to review the ledgers related to Turner & Hooch and What About Bob? According to news reports, Robinson & Company is a particularly aggressive and effective auditor who typically recovers large damages for clients, according to a recent article at Deadline Hollywood. The filing, which includes seven filings made by Dreyfuss, claims that Disney is hostile regarding audits in general, and will not allow Robinson & Company, the auditor chosen by Dreyfuss, to audit the film giants’ ledgers; therefore, accounting under the supervision of the court is warranted. According to Dreyfuss, Wagner, and other plaintiffs in the case, Disney does not understand the intricacies involved in Hollywood accounting and only wants to use PricewaterhouseCoopers, Deloitte, KPMG, or Ernst & Young, the largest and most well-known accounting firms in the nation.

 

The filing claims that historically, motions picture companies abhor having to pay net and gross profit participants significant amounts, and have withheld substantial profits from those participants. Auditing companies who audit the entertainment industry including television and motion picture industries often fine that profit participants are owed monies, which is the reason for profit participation auditors.

 

Although there is reportedly a three year waiting list to perform an audit on Disney properties, Dreyfuss has apparently decided that he is a large enough talent to attempt to collect what is rightfully his in terms of profits. According to news reports, Turner & Hooch generated $72 million in revenue in the U.S., with What About Bob? generating $64 million in revenues in the U.S. and Canada since its release in May of 1991. In addition to movie theater revenues, international sales and home videos are thought to add up to a substantial amount for the two films in one way or another.

 

In the end, Dreyfuss and Wagner believe they have an opportunity to explore issues including how net profits are calculated by raising the issues of auditors. The complaint claims that the ‘Big Four’ accounting firms named above have no competence or reputation relevant to auditing such big names as Disney; Robinson, the auditing firm hired by Dreyfuss, is reported to be results-driven, tenacious, and tough.

 

As reputable LA entertainment attorneys, the staff at Spotora & Associates realize there are many complexities involved when it comes to profit participants and the entertainment world. Auditing is one small nuance of the overall picture, however when you have issues regarding whether monies are being paid out fairly, it is important to choose a Los Angeles business lawyer who is highly experienced and capable in these matters.

 

 

North Carolina Based Two Toasters Acquired by Ticketmaster

Recently, it was announced that Two Toasters, a design and development agency for applications on Google and Apple platforms, was acquired by Ticketmaster, a divisions of Live Nation Entertainment. While Ticketmaster had little to say about the acquisition, it did confirm on the company’s website that the acquisition “further demonstrates Ticketmaster’s commitment to expanding its mobile capacity.”

While the amount Ticketmaster paid to acquire Two Toasters was not disclosed in news reports, the American Tobacco Campus-based company will be known as Ticketmaster Mobile Studio, according to the Herald Sun. On Tuesday, March 31, Ticketmaster issued a statement saying that the acquisition of Two Toasters “further demonstrates Ticketmaster’s commitment to expanding its mobile capacity and creating a truly end-to-end platform unlike any other in the live event and entertainment space.”

According to news sources, Two Toasters has been successful in the launch of more than 50 mobile applications for a wide array of companies, some of which include Regal Entertainment Group, Birchbox, Ebates, and Airbnb, among others. Two Toasters currently employs 32 individuals. The company was founded by Adit and Rachit Shukla, brothers. The deal is an important strategic undertaking for Ticketmaster, according to sources, who say the deal establishes a solid presence for Live Nation in the Triangle.

Two Toasters’ CEO Rachit Shukla said in the statement issued by Ticketmaster that, “We’ve assembled one of the best mobile teams in the region and Two Toasters has become a magnet for new talent.” Shukla went on to say that by Two Toasters joining Ticketmaster, the company’s visions has been expanded, and the talented team given the opportunity to take ownership and build a completely new mobile standard in the industry as Ticketmaster Mobile Studio.

Spotora & Associates is a talented team of Los Angeles business attorneys dedicated to achieving and exceeding your business goals. We specialize in mergers and acquisitions and successfully represent businesses in a wide array of industries; if you are in the process of acquiring a new entity or being acquired, we can help you ensure all bases are covered at every step. We know the complexities involved and will provide the expertise and knowledge essential to helping you make a smart and profitable business decision. Our primary goal is to obtain your objectives in business transactions from the simplest, to the most complex. Contact us to get started right away.