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Is It Restraint of Trade for a Music Venue to Prohibit Booking in Another Venue

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  • 10-13-2011, 01:57 PM
    limerockcodger
    Is It Restraint of Trade for a Music Venue to Prohibit Booking in Another Venue
    Any help in clarifying my understanding of this would be greatly appreciated...this seemed the most logical first place to ask for some insight.
    Thks in advance

    A band was compelled by contract with one performance venue (MASS MOCA) to cancel an engagement the following night at another venue located approximately 1.5 HOURS away.

    MASS MOCA is a non-profit and tax-subsidized museum in North Adams, MA. The other venue is a privately owned nightclub and restaurant in adjacent New York state.

    Is this in and of itself "restraint of trade?

    While it is a common enough practice in the performance venue business, is it lawful?

    Does the MASS MOCA have any special obligations or restrictions on such business practices due to its tax exempt and public money?

    Can any attorney here help me clarify IF this is an issue that has any remedy under any state or federal law?

    Are there any interstate commerce implications to this i.e. is federal law the best place to look for relief?
  • 10-13-2011, 03:36 PM
    Mr. Knowitall
    Re: Performance Venue - is It Restraint of Trade One Venue Prohibiting Booking in Ano
    I can't read your contract from here, but it is perfectly reasonable for a venue that is paying a band to perform to not want the band to perform concerns in competing venues when the timing might cause people to buy tickets from the competing venue. I expect you are getting paid.
  • 10-13-2011, 04:49 PM
    limerockcodger
    Re: Is It Restraint of Trade for a Music Venue to Prohibit Booking in Another Venue
    I'm sorry, I wasn't precise. My interests are on the promoter side. A group we had contracted had to back out after we incurred promotional cost. The "other" entity is a nonprofit and taxpayer funded business. My fundamental question might be is this FAIR? And legally appropriate for a "business" that is advantaged by its funding sources and tax advantages.
  • 10-13-2011, 05:00 PM
    Mr. Knowitall
    Re: Is It Restraint of Trade for a Music Venue to Prohibit Booking in Another Venue
    Lots of things are legal that aren't fair.

    There's no penalty provision in your contract for a band that cancels after you incur promotional costs?
  • 10-13-2011, 07:01 PM
    limerockcodger
    Re: Is It Restraint of Trade for a Music Venue to Prohibit Booking in Another Venue
    Oh, I understand that. We would never do that to an artist, pretty much regardless of any reason for a cancellation. My ire is more directed at a non-profit using rather heavy handed methods to compete where there is no need to compete. And we do debate imposing the similar demands upon our artists, but so far find it not to be what we find to be fair or in our best interest. Thanks for the replies, you are confirming my conclusion that business ethics and law are not always the same.
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