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According to recent headlines, Independent theater owners across the country feel increasingly squeezed by the top four major theater chains. In a recent California case, Flagship Theatres of Palm Desert, LLC v. Century Theatres, Inc., (Los Angeles County Super. Ct. No. SC090481) the plaintiff  (Flagship) brought an antitrust action against the owners of a competing theater concerning the distribution and exhibition of motion pictures.

Flagship owns a movie theater called the “Cinemas Palme d‟Or” (the Palme) with 10 screens. Flagship owns no other theaters. Century Theatres, Inc. (Century) owns a nearby movie theater called the “Century 15 at the River” (the River) with 15 screens. Century owns a large theater circuit of over 1,000 screens, and in 2006 Century was acquired by Cinemark USA, Inc. (Cinemark), resulting in a combined circuit of several thousand screens.

The crux of the action involves Flagship’s allegations that Century and two film distributors have used the power deriving from both the size of its theater circuit and its many theaters in noncompetitive markets to undermine the competitive process through which theaters bid for and obtain licenses to exhibit first-run films.

The complaint alleged claims for restraint of trade in violation of the Cartwright Act (Bus. & Prof. Code, § 16700 et seq.), unfair competition in violation of the unfair competition law (id., § 17200 et seq. (hereafter UCL)), and intentional interference with prospective economic advantage. Flagship later filed a first amended complaint and a second amended complaint, alleging similar claims and adding Cinemark as a defendant. Flagship also eventually dismissed the distributor defendants.

According to one of the Plaintiff’s, the basis of the case is rooted in the 1948 Supreme Court ruling against Paramount which decreed that studios could not own theater chains. “It’s all about allowing independent theaters into the marketplace, which means more movies, and more diverse movies, get shown.”

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Although major motion pictures are known for carefully planning out scenes months in advance, Christopher Nolan‘s “The Dark Knight Rises,” which is scheduled to be shot in New York, may get a dose of gritty authenticity by using the protests as a backdrop or a stand-in for something that already exists in the film. See the full story from the LA Times’ blog, The Envelope/24 Frames by following this link.

Learn more here: http://www.fastcompany.com/1780096/prescreen-the-social-movie-discoverer-that-could-shake-up-the-industry

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Hey folks! The blog has been on hiatus while I digested my recent career move. For those of you who don’t know, I’m now a partner at the firm of Leavens, Strand, Glover & Adler, LLC, the leading entertainment law boutique in the midwest.

This just in from the Indie News wires: Indie Producers Band Together Not To Get Screwed Independent film producers Hunter Gray, Tyler Brodie and others are banding together to form Cinema Conservancy, a new organization dedicated to be a one-stop shop for information-sharing about legal, union, copyright, delivery and other production-related contract and paperwork issues—all for free—according to Variety.

ABOUT THE AUTHOR

David M. Adler, Esq. is an attorney, author, educator, entrepreneur and partner at the boutique intellectual property, entertainment & media law firm LEAVENS, STRAND, GLOVER & ADLER, LLC based in Chicago, Illinois. My responsibilities include providing advice to business units and executives on copyright, trademark, ecommerce, software/IT, media & entertainment and issues associated with creating and commercializing innovations and creative content, drafting and negotiating contracts and licenses, advising on securities laws and corporate governance and managing outside counsel. Learn more about me here: www.ecommerceattorney.com

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The Electronic Frontier Foundation (EFF) and a coalition of advocacy groups filed an Amicus (friend of the court) brief Thursday, arguing that the infringement claims made by Viacom in the appeal of Viacom v. YouTube threaten the “safe harbor” provisions of the Digital Millennium Copyright Act (DMCA). The EFF argues that  services like YouTube have enabled political and other speech to flourish online. Citing the in protests across the Middle East, the EFF fears that user-generated expression could face stifling litigation, which would encourage content-blocking or even the shutting down the services.

“If the DMCA safe harbors are undermined in the way Viacom and the other content companies would like, the free flow of information will be seriously threatened,” said EFF Senior Staff Attorney Abigail Phillips. “

Read more here.

David M. Adler, Esq. is an attorney, author, educator, entrepreneur and founder of a boutique intellectual property law firm based in Chicago, Illinois. With over fourteen years of legal experience, Mr. Adler created the firm with a specific mission in mind: to provide businesses with a competitive advantage by enabling them to leverage their intangible assets and creative content in a way that drives innovation and increases the overall value of the business. Learn more about me HERE and HERE

David M. Adler, Esq. & Assoc.: Safeguarding Ideas, Relationships & Talent®

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What defines the “Indie” aesthetic? Some say, its an a edginess that eschews mainstream roles and requirements. Others say its a certain purity of purpose that comes from being unsigned and undiscovered. Still others have posited that the word is nothing more than its root definition: independent, original, obscure and wholly lacking dependence on mainstream approval, recognition or even awareness to justify its existence. In striking contrast to the self-ascribed existential nullity, indie pundits can be introverted, self-critical and self-deprecating, characterizing other aspiring indie artists as charlatans exuding “faux-ecclecticism.”

From my perspective, “indie” means innovative. Witness the lengths to which the Factory 25 label goes to distinguish its Art from the rest of the crowd. A recent WSJ piece describes how Factory 25 has elevated content distribution to an art form: The package for Ronald Brownstein’s “Frownland” “is over the top: a gatefold album containing the film’s soundtrack and the DVD; a comic book drawn by actor Mary Bronstein (as her alienated character); printed excerpts from a 70,000-word email exchange between the two lead actors (in character); a poster; and an actual snippet of 16mm film from Mr. Bronstein’s work print.”

Which is all to say that Indie Filmmaking succeeds not simply because of its gritty, pull-yourself-up-by-the-bootstraps ethos. In an environment where excess defines success, Indie filmmaking succeeds by putting innovation ahead of maintaining, or even exceeding, the status quo. It is not “art for art’s sake.” Rather it is creating and meeting a psychological need using collaborative means and focusing on the end-user experience.

Matt Grady, the entrepreneur behind Factory 25, put it best when he said: ”I wanted to take these art films and make them into a physical piece of art.”

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Safeguarding Ideas, Relationships & Talent®

Filmmakers face an often confusing and changing set of challenges trying to ensure that their business remains legally compliant. Yet few can afford the highly-qualified and versatile legal staff needed to deal with today’s complex and inconstant legal and regulatory environment. Adler & Franczyk is aboutique law firm created with a specific mission in mind: to provide businesses with a competitive advantage by enabling them to leverage their intangible assets and creative content in a way that drives innovation and increases the overall value of the business.

We approach our relationship with each client as a true partnership and we view our firm as an extension of their capabilities. Our primary value is our specialization on relevant and complex issues that maintain the leading edge for our clients. We invite you to learn more about the services we offer and how we differ.

On the web: www.ecommerceattorney.com
On Twitter: www.twitter.com/adlerlaw
On LinkedIn: www.linkedin.com/in/adlerlaw

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Obama has breathed new life into the Section 181 film tax credit (originally blogged about here) that had expired at the end of 2008. Originally signed into law as part of the 2004 Jobs Creation Act, it has been resurrected as part of the controversial new tax bill. The new tax bill recently signed into law will extend the film tax credit to the end of 2011.  Importantly, it can be applied retroactively to all qualifying films produced in 2011 and 2010.

The bill allows income tax incentives for investors in independent film and television projects. Section 181 permits a 100% write-off for the cost of certain audio-visual works, regardless of what media they are destined for (e.g., theatrical, television, DVD, etc.).

There are some limitations to the credit, such as:

• The aggregate costs do not exceed $15 million for each qualifying production ($20 million if a significant amount of the production costs are incurred in certain designated areas).
• A film or television production is a qualified film or television production if 75 percent of the total compensation of the production is compensation for services performed in the United States by actors, directors, producers, and other relevant production personnel (the 75 percent test).
• The incentive only applies to monies spent from US equity investors – you cannot benefit from presale and gap loans.
• Television production is limited to 44 episodes.

This widely-anticipated and closely-watched renewal brings a sorely needed benefit at a critical time in independent film finance. Independent film projects continue to struggle to find financing. Low budget indie filmmakers may have the most to gain because their films are often financed almost entirely by one are a few equity investors, all of whom can share in this benefit.

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Safeguarding Ideas, Relationships & Talent®

Filmmakers face an often confusing and changing set of challenges trying to ensure that their business remains legally compliant. Yet few can afford the highly-qualified and versatile legal staff needed to deal with today’s complex and inconstant legal and regulatory environment. Adler & Franczyk is a boutique law firm created with a specific mission in mind: to provide businesses with a competitive advantage by enabling them to leverage their intangible assets and creative content in a way that drives innovation and increases the overall value of the business.

We approach our relationship with each client as a true partnership and we view our firm as an extension of their capabilities. Our primary value is our specialization on relevant and complex issues that maintain the leading edge for our clients. We invite you to learn more about the services we offer and how we differ.

On the web: www.ecommerceattorney.com
On Twitter: www.twitter.com/adlerlaw
On LinkedIn: www.linkedin.com/in/adlerlaw

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We Hold These Truths Ltd. of Phoenix (WHTT), a religious group opposed to the movement known as “Christian Zionism” sued a film producer for copyright infringement. Christian Zionism is a religious movement that sees the rise of the state of Israel as a fulfillment of a Biblical prophecy.

According to the complaint, filed December 13 in federal court Phoenix, WHTT accused Jason Shelton of pirating the film “Christian Zionism: the Tragedy and The Turning, Part 1.” Copyright claims are exclusively a matter of federal, not state, jurisdiction. The Complaint alleges that Shelton, an Arizona resident, used his website to post “preview” versions of the film and claimed it as his own work.

In response to the lawsuit, Shelton filed a Digital Millennium Copyright Act (DMCA) Take-Down Notice with Google Inc.’s YouTube video-sharing site, complaining that a trailer WHTT has posted violated his copyright, according to court papers. WHTT’s video was removed from the YouTube site as a result and it hasn’t been reinstated, according to the complaint.

The case is We Hold These Truths Ltd. v. Jason Shelton, 2:10-cv-02659-JAT, U.S. District Court, District of Arizona (Phoenix).

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