Latest / Bloomberg Law / Biden Pardons Son & Drake Legal Moves Over Kendrick Lamar
Transcript
- 0:03Speaker 1: This is Bloomberg Law with June Brusso from Bloomberg Radio.
- 0:10Speaker 2: I'm extremely proud of my son Hunter. He has overcome
- 0:13Speaker 2: an addiction. He is He's one of the brightest, most
- 0:17Speaker 2: decent men I know, and I am satisfied that I'm
- 0:21Speaker 2: not gonna do anything. I said, I advide by the
- 0:24Speaker 2: jury decision, and I will do that, and I will.
- 0:27Speaker 3: Not pardon him.
- 0:28Speaker 1: President Joe Biden said it over and over again he
- 0:32Speaker 1: would not pardon his son Hunter for felony, gun and
- 0:36Speaker 1: tax convictions, and White House Press Secretary Kareem Jean Pierre
- 0:41Speaker 1: confirmed it over and over again. From a presidential perspective,
- 0:46Speaker 1: Is there any possibility that the president would end up
- 0:49Speaker 1: pardoning his son. No, I just said no.
- 0:53Speaker 4: I just answered, you go ahead.
- 0:55Speaker 3: Why doesn't President five just pardon him?
- 0:58Speaker 4: President, I've been very clear, the President's not going to work.
- 1:01Speaker 5: It's still a no. It's still an e gold oois
- 1:03Speaker 5: you know, it's still a no.
- 1:04Speaker 2: It will be a no.
- 1:06Speaker 3: It is a no.
- 1:07Speaker 4: And I don't have anything else to add.
- 1:08Speaker 5: Will he pardon his son? No?
- 1:11Speaker 4: The President. I could speak for the President and he
- 1:14Speaker 4: said he would not pardon his son. And I'm just
- 1:17Speaker 4: going to leave.
- 1:17Speaker 1: It there, But then on Sunday, Biden did a one
- 1:22Speaker 1: eighty and gave his son Hunter a sweeping, unconditional pardon,
- 1:27Speaker 1: not just for the gun in tax convictions, but also
- 1:31Speaker 1: for any federal crime he may have committed in the
- 1:34Speaker 1: past decade. A jury in Delaware convicted Hunter Biden of
- 1:38Speaker 1: three felonies in June for purchasing a gun in twenty
- 1:42Speaker 1: eighteen when he lied on a federal form by claiming
- 1:46Speaker 1: he was not illegally using or addicted to drugs. He'd
- 1:50Speaker 1: been set to stand trial in September in a California
- 1:53Speaker 1: case accusing him of failing to pay at least one
- 1:56Speaker 1: point four million dollars in taxes, but he agreed to
- 2:00Speaker 1: plead guilty to misdemeanor and felony charges before trial. He
- 2:04Speaker 1: was supposed to be sentenced this month in the two
- 2:07Speaker 1: federal cases until his father pardoned him. President Biden justified
- 2:12Speaker 1: his breaking his pledge by saying that raw politics infected
- 2:17Speaker 1: the process and led to a miscarriage of justice. Joining
- 2:22Speaker 1: me is constitutional law scholar Philip Bobbitt, a professor at
- 2:25Speaker 1: Columbia Law School. This pardon not only covers the felony
- 2:30Speaker 1: tax and gun charges. It also protects Hunter Biden from
- 2:35Speaker 1: ever facing federal charges over any crimes he could possibly
- 2:39Speaker 1: have committed over the past decade. How broad is that?
- 2:43Speaker 3: That's quite broad. The only precedent that comes to mind
- 2:46Speaker 3: is the Ford pardon of President Nixon, that is quite
- 2:50Speaker 3: his all encompassing as status. That's unusually broad.
- 2:53Speaker 1: Obviously, this decade long timeline was not randomly chosen. It
- 2:58Speaker 1: covers Hunter Biden's entire tenure on the board of Barisma
- 3:03Speaker 1: and his other questionable overseas business ventures. So it seems
- 3:08Speaker 1: designed to stop any future prosecutions of Hunter Biden for
- 3:14Speaker 1: his overseas dealings.
- 3:16Speaker 3: That makes sense. My take on this is that it's
- 3:19Speaker 3: really a kind of a spiraling down of our constitutional culture,
- 3:24Speaker 3: and that the reason why it's so broad is because
- 3:27Speaker 3: the president fears a series of improper prosecutions by the
- 3:34Speaker 3: new administration.
- 3:35Speaker 1: Explain what you mean by spiraling down?
- 3:38Speaker 3: Well, I'm sure the president was advised that the way
- 3:42Speaker 3: to do this. I'm a father, I'm a part of
- 3:45Speaker 3: the son. Believe me, I deeply empathize with the President's predicament.
- 3:52Speaker 3: But I imagine he was advised that the way to do
- 3:55Speaker 3: that was to wait until the settencing dates. I think
- 4:00Speaker 3: the gun charges or December the twelfth in Delaware. The
- 4:04Speaker 3: tax charges are December the sixteenth in California, still well
- 4:08Speaker 3: within his presidency, and depending on how severe the sensors were,
- 4:12Speaker 3: they might well have been probationary or suspended or milesent.
- 4:17Speaker 3: But depending on what they were like, the president could
- 4:19Speaker 3: then commute them to a greater or lesser degree. That's
- 4:23Speaker 3: still problematic in many respects. I understand people who would
- 4:27Speaker 3: have that reaction, but it's not as dramatic or as
- 4:31Speaker 3: troubling as the blanket partners you described. And since I'm
- 4:35Speaker 3: sure the president got excellent legal advice on this, why
- 4:39Speaker 3: did he do this? And I think the only thing
- 4:41Speaker 3: that can account for it is his anxiety that the
- 4:45Speaker 3: new administration is going to go after his family. As
- 4:50Speaker 3: they said many times in the campaign, they would this
- 4:53Speaker 3: is spiraling down because it's sort of morning that once said,
- 4:57Speaker 3: defining deviancy down. It is deviant for the president to
- 5:03Speaker 3: try to use law enforcement in the federal law enforcement
- 5:06Speaker 3: agencies to go after his predecessors. I can't think of
- 5:10Speaker 3: any president until Trump, and an interesting exchange occurred in
- 5:15Speaker 3: Trump versus the United States the President's community case, when
- 5:19Speaker 3: Justice Alito said that they wanted to give presumptive immunity
- 5:24Speaker 3: because he was concerned about a future president persecuting not
- 5:29Speaker 3: for this prosecuting one of his predecessors, and the press
- 5:32Speaker 3: automatically assumed this was something in favor of Trump. I
- 5:35Speaker 3: didn't hear it that way at all. It sounded to
- 5:37Speaker 3: me as though the Justice was talking about Trump being
- 5:40Speaker 3: elected and turning on Biden and his family. And I
- 5:45Speaker 3: don't think that was really an unrealistic concern. And so
- 5:49Speaker 3: one spiral of unprecedented action that gets another in defense,
- 5:56Speaker 3: and it just circles downward.
- 5:58Speaker 1: So President Biden said things like, no reasonable person who
- 6:02Speaker 1: looks at the facts of Hunter's cases can reach any
- 6:04Speaker 1: other conclusion than he was singled out only because he's
- 6:07Speaker 1: my son, and that's wrong. But that doesn't answer for
- 6:11Speaker 1: the broadness of the pardon.
- 6:16Speaker 3: Well, I think that's right, But I think that the
- 6:19Speaker 3: partner is about future prosecutions, and I think it's because
- 6:23Speaker 3: the president is extremely concerned about all the threats that
- 6:28Speaker 3: President Trump has made against Hunter Biden, against the Biden family.
- 6:32Speaker 3: And I don't think that's unreasonable. I don't think that's pronoidd.
- 6:36Speaker 1: Even some Democrats are criticizing the Hunter Biden pardon. Senator
- 6:40Speaker 1: Michael Bennett of Colorado said the President put personal interest
- 6:45Speaker 1: ahead of duty and that this decision further erodes American's fate.
- 6:49Speaker 4: That the justice system is fair and equal for all.
- 6:53Speaker 1: Colorado Governor Jared Poulis said it was a bad precedent
- 6:56Speaker 1: that could be abused by later presidents and will sadly
- 7:00Speaker 1: tarnish Biden's reputation.
- 7:03Speaker 3: I'm afraid that that's correct, and that's why I say
- 7:06Speaker 3: it's spiraling down. It makes the office of the presidency
- 7:11Speaker 3: and the constitution of strengths in the presidency degraded. But
- 7:15Speaker 3: it doesn't exist in a vacuum. It hasn't come out
- 7:18Speaker 3: of nowhere. This isn't a president singling out his son
- 7:23Speaker 3: and giving him a blanket pardon because he thinks that
- 7:25Speaker 3: the poor boy is going to be prosecuted and persecuted
- 7:28Speaker 3: the rest of his life. I think it is in
- 7:30Speaker 3: a direct response to the multiple threats and made by
- 7:35Speaker 3: President Trump about using the law enforcement agencies in the
- 7:38Speaker 3: federal government to go after the Biden family. And I
- 7:41Speaker 3: think that one wrong but gets another.
- 7:43Speaker 1: I mean, there's the precedent of Richard Nixon. Do you
- 7:46Speaker 1: think this is a precedent that will lead other presidents
- 7:49Speaker 1: to give blanket pardons?
- 7:52Speaker 3: Could very well. A lot of the pardons in the
- 7:56Speaker 3: last couple of years, as few years have been a
- 8:00Speaker 3: troubling Sometimes it looked as though a pardons were being
- 8:02Speaker 3: dangled before witnesses keep them from giving testimony. I believe
- 8:07Speaker 3: Michael Cohen testified to that effect. So pardons have come
- 8:11Speaker 3: under some negative scrutiny lately anyway, And sure, once is
- 8:14Speaker 3: on the books, it sits there like a gun on
- 8:17Speaker 3: the dinner table, waiting to be used.
- 8:19Speaker 1: Only two other presidents have pardoned family members. President Bill
- 8:23Speaker 1: Clinton pardoned his brother Roger, who had pleaded guilty to
- 8:27Speaker 1: selling cocaine to an undercover police officer and spent a
- 8:31Speaker 1: year in prison. And President Trump pardoned his son in law,
- 8:35Speaker 1: Jared Kushner's father, Charles Kushner, who had pleaded guilty to
- 8:39Speaker 1: eighteen counts of falsifying tax returns, retaliating against a witness,
- 8:44Speaker 1: and making false statements about campaign contributions to the Federal
- 8:49Speaker 1: Election Commission. And over the weekend, Trump announced plans to
- 8:54Speaker 1: nominate Charles Kushner to be the US envoy to France.
- 9:00Speaker 1: I'm wondering if there are so few of these pardons
- 9:02Speaker 1: of family members because presidents are hesitant to do that,
- 9:07Speaker 1: or because family members just don't get into trouble like this.
- 9:12Speaker 3: The culture may be changing, but I think the families
- 9:16Speaker 3: of politicians, at least in my lifetime my experience, are
- 9:20Speaker 3: really coached quite rigorously. Don't do this, don't do that,
- 9:25Speaker 3: don't take that job. It look as though you're being favorite.
- 9:28Speaker 3: Don't write that article, it look as though you're in
- 9:31Speaker 3: my mouth speaks that families are quite aware of the
- 9:35Speaker 3: negative publicity their children can give them them, and they
- 9:37Speaker 3: are very strict with them. Now, of course they're outliers
- 9:40Speaker 3: and they're kids that get out of control, but I
- 9:43Speaker 3: think generally recently the year when I was growing up,
- 9:45Speaker 3: the families are very very circumspect.
- 9:49Speaker 1: The pardon power, would you say, it's the it's the
- 9:52Speaker 1: one unchecked power the president.
- 9:54Speaker 3: Has, sort of. It's not a power that is reviewable
- 9:59Speaker 3: by hoards, and it's not a power that can be
- 10:02Speaker 3: modified by the Congress. However, it's not entirely unchecked. For example,
- 10:09Speaker 3: if you were to take a bribe, or if you
- 10:13Speaker 3: were to solicit a bribe, do this for me, and
- 10:16Speaker 3: I will pardon. With soliciting the bribe, I think that
- 10:19Speaker 3: you could still be prosecuted. The pardon might stand, although
- 10:23Speaker 3: that's not entirely certain, but I think the pardon probably
- 10:26Speaker 3: would stand, but the underlying crime would still be prosecuted.
- 10:30Speaker 3: That's because there's a difference between draining a part and
- 10:32Speaker 3: taking a bribe.
- 10:33Speaker 1: It seems like Biden, in his explanation for the pardon,
- 10:38Speaker 1: is sort of adopting the Trump view of the justice
- 10:41Speaker 1: system being unfair and targeting his son unfairly.
- 10:46Speaker 3: Maybe I'm not sure I agree with you, or perhaps
- 10:50Speaker 3: I would put a little more finely grained way. I
- 10:54Speaker 3: thought that Trump's view was the justice system was systematically
- 10:57Speaker 3: unfair towards a whole class of peace people Magavella J
- 11:03Speaker 3: six rioters that Trump's supporters generally, or Donald Trump in particular,
- 11:11Speaker 3: and that was to silence them politically. I think what
- 11:15Speaker 3: the President Biden was saying was that Hunter Biden would
- 11:19Speaker 3: never have been prosecuted at all for these pretty minor offenses.
- 11:24Speaker 3: I'm sort of a gun offensive to the chart had
- 11:27Speaker 3: he not been the president's son. That's not just because
- 11:30Speaker 3: or even mainly because the justice departments have to get
- 11:34Speaker 3: the Biden family. It's because the children of probably people
- 11:38Speaker 3: of celebrities, of people in high office are often held
- 11:41Speaker 3: to the higher standard.
- 11:43Speaker 1: What a lot of people also seem to be taking
- 11:45Speaker 1: issue with is that Biden said again and again, even
- 11:50Speaker 1: after Trump's reelection, that he wasn't going to pardon his son.
- 11:56Speaker 4: So why do you know a one to eighty and
- 11:59Speaker 4: do it.
- 12:00Speaker 3: Well, that's what we're given free will for. We're allowed
- 12:03Speaker 3: to change our minds. I think he was a mistake,
- 12:06Speaker 3: but I think it was an understandable mistake, not an
- 12:09Speaker 3: irrational mistake. And light of the threats made against the
- 12:12Speaker 3: Biden family by Donald Trump and his team, and I
- 12:16Speaker 3: think that perhaps the president thought, is vice president win
- 12:19Speaker 3: the elections, so he would have to worry about those threats.
- 12:23Speaker 3: Perhaps he thought that once Trump won the election, Trump
- 12:25Speaker 3: would moderate his mitriol and his threats. But I can
- 12:29Speaker 3: see how at some point you say, wait a minute,
- 12:31Speaker 3: he's been elected. He's going to follow through with these threats.
- 12:35Speaker 3: That's the world I didn't really anticipate, and I'm going
- 12:38Speaker 3: to have to react to it.
- 12:40Speaker 1: Have presidents used the pardon power more in recent years
- 12:45Speaker 1: than presidents in the past did.
- 12:48Speaker 3: Yes and no. It's been used more frequently for individual pardons.
- 12:52Speaker 3: But after the Whiskey Rebellion and George Washington presidency, after
- 12:56Speaker 3: the Civil War, even after the movement of or protesters
- 13:01Speaker 3: in the Vietnam era to Canada, presidents would pardon the
- 13:06Speaker 3: whole classic of people. So the numbers were greater, but
- 13:09Speaker 3: the incidents were fewer, if you see what I mean,
- 13:12Speaker 3: and I think that if you go back to the
- 13:14Speaker 3: Federi's papers, to the history of the drafting of the Constitution,
- 13:18Speaker 3: this idea of ameliorating deep social cleavages was one of,
- 13:25Speaker 3: not the only, that was one of the most important
- 13:28Speaker 3: purposes behind the pardon power, to try to give amnesties,
- 13:33Speaker 3: to take groups that had been alienated and admittedly committed
- 13:37Speaker 3: crimes against the state, and somehow reconcile them back to
- 13:40Speaker 3: the society.
- 13:42Speaker 1: A group of Democratic lawmakers has called on President Biden
- 13:46Speaker 1: to use the pardon power in his remaining time to
- 13:50Speaker 1: correct injustices and to pardon, for example, all the people
- 13:56Speaker 1: who are on federal death row. Knowing that the Donald
- 14:00Speaker 1: Trump in his first term restarted federal executions which had
- 14:06Speaker 1: been dormant, do you think that's a good idea, more
- 14:08Speaker 1: in line with what the pardon power is about.
- 14:11Speaker 3: I don't think that's inconsistent with a pardon power. I
- 14:15Speaker 3: think that obviously it's important, and it's important morally and politically.
- 14:20Speaker 3: But you're talking about a very small number of people.
- 14:22Speaker 3: Most people on death row are in state prisons.
- 14:25Speaker 1: Do you see an area where he might issue pardons
- 14:28Speaker 1: to sort of make a mark before he leaves?
- 14:31Speaker 3: Oh? No, I'd say he's done that.
- 14:33Speaker 1: I don't think anyone can dispute that. Thanks so much
- 14:36Speaker 1: for being on the show. That's Professor Phillip Bobbitt of
- 14:39Speaker 1: Columbia Law School turning out to Legal news. In the
- 14:41Speaker 1: music industry, how.
- 14:44Speaker 4: Do life goes on? Babies?
- 14:50Speaker 3: Keep a horn on?
- 14:51Speaker 5: Met me?
- 14:54Speaker 1: That's hip hop superstar Kendrick Lamar's wildly popular, not like
- 14:59Speaker 1: us Somars track. This is another hip hop superstar, Drake
- 15:04Speaker 1: Play Drake, I, Hey you like them young? You better?
- 15:07Speaker 5: I have a go to sale black one.
- 15:09Speaker 1: But Drake has taken their bitter feud to a new
- 15:12Speaker 1: level by filing two legal actions against Universal Music, the
- 15:17Speaker 1: parent company of the labels for both artists. Joining me
- 15:21Speaker 1: is entertainment attorney Ron, Beanstock, Obscurency Hollenbeck Ron. These aren't
- 15:26Speaker 1: lawsuits yet. Tell us about the first filed in New York,
- 15:31Speaker 1: which is a civil rico pre action suit.
- 15:34Speaker 5: Yeah, so we've got actually parallel pre complaint filings known
- 15:39Speaker 5: as petitions, one in New York, one in Texas. The
- 15:42Speaker 5: pre complaint, if you will, in New York, is based
- 15:45Speaker 5: upon the relationship between Universal and Spotify. Spotify is that's
- 15:50Speaker 5: the number one streaming service in the world. From those
- 15:53Speaker 5: who don't know who Universal is, they are a one
- 15:55Speaker 5: of the three major giant music business powerhouses, both with
- 16:00Speaker 5: recorts publishing interests, and have both artists Kendrick Lamar and
- 16:04Speaker 5: Drake through two different divisions signed to Universal Music Group,
- 16:09Speaker 5: which makes it even more confusing. But the petitions are
- 16:13Speaker 5: looking for depositions and information to establish a full complaint
- 16:21Speaker 5: cause of action against these defendants for in New York,
- 16:26Speaker 5: specifically payola, which is a nineteen thirty four law. I
- 16:31Speaker 5: once said payola to some people under thirty. They thought
- 16:33Speaker 5: I was making that word up. Payola is the illegal
- 16:37Speaker 5: payment to a radio station or could be any other
- 16:41Speaker 5: now in the digital age, another platform to play a
- 16:46Speaker 5: specific artist or specific piece of music. So in New
- 16:49Speaker 5: York it involves Spotify. In Texas it involves iHeartRadio. There's
- 16:54Speaker 5: some fascinating facts about this New York petition. I think
- 16:58Speaker 5: most people need to know that You Music Universal Music
- 17:03Speaker 5: owns three point two seven percent of Spotify. That would
- 17:07Speaker 5: have been something we wouldn't have seen in the past,
- 17:09Speaker 5: But the majors all have an interest now in Spotify,
- 17:12Speaker 5: and that Spotify pays annually in terms of streaming and
- 17:16Speaker 5: other download income, but mostly streaming income, over two point
- 17:19Speaker 5: five billion dollars to your music. So this is a
- 17:21Speaker 5: huge relationship. When you switch to the Texas action, that
- 17:26Speaker 5: really involves iHeartRadio, the number one radio station in the country,
- 17:30Speaker 5: and there's been as a complaint, it should say pre
- 17:33Speaker 5: complaints as a symbiotic relationship between new music and iHeartRadio.
- 17:38Speaker 5: New music controls a vast number of hits over the
- 17:42Speaker 5: last decade, and so if you want to have access
- 17:44Speaker 5: to those hits, you're going to be close to the
- 17:47Speaker 5: company it supplies that content to you.
- 17:51Speaker 1: So break it down for us, what does the first
- 17:54Speaker 1: petition in New York claim?
- 17:56Speaker 5: So the first petition in New York says, effectively, hey,
- 17:59Speaker 5: you favored Kendrick Lamar in this now sort of infamous
- 18:04Speaker 5: wrap beef, as we would call this relatively new phenomena,
- 18:09Speaker 5: if you will, not this east coast west coast thing,
- 18:11Speaker 5: but this very specific rapper versus rapper beef, which are
- 18:14Speaker 5: both on the same label. They say, you favored the
- 18:17Speaker 5: New York petitions as you favored Kendrick Lamar. You boosted
- 18:21Speaker 5: his song versus mine in this dispute we're having, this
- 18:24Speaker 5: this musical dispute we're having, and you favored him on it,
- 18:28Speaker 5: and you paid someone in terms of Spotify to stream
- 18:32Speaker 5: more of it, and you took advantage of what you
- 18:34Speaker 5: could take advantage of to give this artists favor over me.
- 18:39Speaker 4: So what's the.
- 18:40Speaker 1: Point of a preaction suit? What are they looking for?
- 18:43Speaker 5: They're looking for discovery. They're saying, we think it's kind
- 18:48Speaker 5: of like saying information and belief. We're saying, hey, we
- 18:50Speaker 5: think we've got some proof, but we don't have the
- 18:53Speaker 5: exact verbiage we need. We need some facts. So to
- 18:57Speaker 5: prove our facts that we can go and file a
- 18:59Speaker 5: formal with a litany of issues here, we want to
- 19:04Speaker 5: have pre complaint discovery kind of like an expedited discovery.
- 19:09Speaker 5: Both in New York involving Spotify and new music, and
- 19:13Speaker 5: then in Texas we want a very similar theory where
- 19:17Speaker 5: we're saying there was Payola committed again with the iHeart
- 19:22Speaker 5: Radio station, the national chain station. We want to have
- 19:26Speaker 5: expedited discovery so we can go find out the facts.
- 19:29Speaker 5: We want to talk to people from your music. We
- 19:31Speaker 5: want to talk to people from iHeartRadio to get the
- 19:34Speaker 5: facts so we can have a more formal complaint stile.
- 19:37Speaker 1: So just focusing on New York for a moment, do
- 19:40Speaker 1: you think that they'll be able to get that.
- 19:43Speaker 5: It's a tough hurdle to get over here saying we
- 19:47Speaker 5: don't have enough, but we want you as the core
- 19:50Speaker 5: system to provide us the right to go and do this.
- 19:53Speaker 5: I don't know if they've established enough initially with this
- 19:57Speaker 5: pre complaint petition. It will be really up to the
- 19:59Speaker 5: cour to allow some limited scope of discovery. Maybe they'll
- 20:02Speaker 5: do that. I don't think this is going to be
- 20:04Speaker 5: some wide open fields get to talk to anyone you want.
- 20:07Speaker 5: I think they're going to be very narrow to grasp
- 20:10Speaker 5: some of those facts to see if they can get
- 20:11Speaker 5: to the complaint stage. Remember we're in state court or
- 20:14Speaker 5: not in federal court. So a lot of the dismissal
- 20:17Speaker 5: issues and the standards for dismissal are slightly different in
- 20:20Speaker 5: New York and in Texas.
- 20:22Speaker 1: Now is the Texas action about defamation.
- 20:26Speaker 5: It's a combination. It is again a Payola plane saying
- 20:32Speaker 5: you favored Kendrick Lamar versus me, Drake, you favored this artist,
- 20:38Speaker 5: and you took advantage of your relationship and the power
- 20:41Speaker 5: you yield as a powerhouse, major record company and content owner,
- 20:47Speaker 5: and you took advantage of that and you preferred getting
- 20:50Speaker 5: this guy boosted versus me, and you did it through iHeartRadio.
- 20:54Speaker 5: Then there's this defamatory language which kind of runs through
- 20:59Speaker 5: both of the petitions, but more specifically in Texas says
- 21:03Speaker 5: you knew what he was saying could be false or
- 21:07Speaker 5: was false, and you allowed him to put that into lyrics.
- 21:11Speaker 5: This all took place this year, and you allowed him
- 21:14Speaker 5: to put this into lyrics, and you let that into
- 21:17Speaker 5: the marketplace. There's a side moment that I haven't seen
- 21:20Speaker 5: anybody discuss here, and I wanted to bring this one
- 21:23Speaker 5: issue up. I don't have Kendrick Lamar's recording agreement because
- 21:26Speaker 5: that's going to be confidential, but generally with record labels,
- 21:30Speaker 5: the artist has a warranty and representation that they won't
- 21:35Speaker 5: the fame, that they won't infringe on someone else's copyright
- 21:39Speaker 5: and things of this nature, and if they do, they
- 21:41Speaker 5: will have to indemnify the record company. Now, I haven't
- 21:44Speaker 5: seen anybody bring this up yet because maybe we just
- 21:47Speaker 5: don't know. And this is purely speculative because Drake has
- 21:51Speaker 5: not sued Kendrick Lamar personally in either of these pre
- 21:56Speaker 5: complaint petitions. But if he's looking to get some fiscal
- 22:02Speaker 5: up come up, and this may be the way because
- 22:05Speaker 5: of Kendrick Lamar's accused of defamatory lyrics, then he may
- 22:09Speaker 5: have to defend by being indemnifying your music against any
- 22:15Speaker 5: of these future lawsuits.
- 22:16Speaker 1: Why is he not suing or bringing these petitions against Kendrick.
- 22:21Speaker 5: Lamar question of the day is it? Because I mean,
- 22:26Speaker 5: we're going to speculate, Well, it'sfamatory, so we're saying, hey,
- 22:30Speaker 5: you claim these things are defamatory, but truth is the
- 22:33Speaker 5: absolute defense. So if Kendrick Lamar has proof or knows
- 22:37Speaker 5: these things to be true and can show that that's
- 22:39Speaker 5: not going to carry the day. That's not a good
- 22:41Speaker 5: idea for Drake. So I think that there's a lot
- 22:45Speaker 5: of personal issues going back and forth, but in the
- 22:49Speaker 5: guise of a business petition lawsuit where we are looking
- 22:53Speaker 5: to make ourselves get even with somebody in a clear
- 22:59Speaker 5: battle of entertainment, you know, stalwarts kingpins, if you will,
- 23:04Speaker 5: where one did not get to success the other did.
- 23:09Speaker 5: Perhaps they there was this you played unfair as new music.
- 23:14Speaker 5: The winner here is universal music, unless they of course
- 23:17Speaker 5: are going to eventually have to you know, pay out,
- 23:20Speaker 5: and if there's a decision against them, but they win
- 23:23Speaker 5: both ways, you know it's going to happen. All of
- 23:25Speaker 5: these these songs are going to get boosted by these lawsuits.
- 23:28Speaker 5: People go right back and start listening again. And there's
- 23:31Speaker 5: all kinds of other issues that took place. I mean,
- 23:33Speaker 5: Drake sold a portion of this catalog this year. There's
- 23:35Speaker 5: one hundred and fifty miles million dollars buyout, but kill
- 23:38Speaker 5: a meter, which is killing netra.
- 23:39Speaker 3: I think it is a.
- 23:41Speaker 5: French Canadian way you describe it in October. All this
- 23:45Speaker 5: is taking place now, and there's also this prior lawsuit
- 23:48Speaker 5: that's a copyright infringement involving Drake and the producer Chris Brown.
- 23:52Speaker 5: So Drake has some real experience here in the courtroom
- 23:57Speaker 5: in this last year. Lots of filings, lots of accusations,
- 24:01Speaker 5: a lot of things going on. It's a lot to
- 24:04Speaker 5: keep keep track of.
- 24:06Speaker 1: Okay, just on the face of it, you accuse someone
- 24:08Speaker 1: of being a certifiable pedophile, that seems defamatory to me.
- 24:14Speaker 5: And that's the interesting point because if you look at
- 24:16Speaker 5: the lyrics, he doesn't say Drake you are. He says
- 24:23Speaker 5: you know things about someone else. So that's defamatory in
- 24:28Speaker 5: an inference. But I think people know who he's inferring.
- 24:33Speaker 5: So I think you drave the straight line to the
- 24:35Speaker 5: potential plaintiff by saying, well, you know, everybody knows that's me.
- 24:39Speaker 5: Everybody knows you're talking about me. But he does not
- 24:42Speaker 5: say him by name. He does not say Drake Drake
- 24:46Speaker 5: by name.
- 24:47Speaker 1: I've been talking to entertainment lawyer Ron Beanstock Obscurency Hollenbeck.
- 24:52Speaker 1: There's been some speculation that Drake is using this to
- 24:57Speaker 1: get information from Universal to somehow get out of his deal.
- 25:02Speaker 5: Mm hmm, yeah, that that seems one of the most
- 25:05Speaker 5: likely outcomes of this. We all know getting out of
- 25:09Speaker 5: record deals. Now I don't again, I'm not. I don't
- 25:12Speaker 5: have I'm not privy to know that. The structure of
- 25:14Speaker 5: his agreement people have called a licensed deal in the press.
- 25:17Speaker 5: That's a different relationship. That means he owns his masters
- 25:20Speaker 5: and he's licensed them to them. But if you have
- 25:22Speaker 5: a long term license deal and you want to pull
- 25:25Speaker 5: back the ownership of those masters that you're releasing, this
- 25:29Speaker 5: could be one way of doing that. Clearly they don't
- 25:32Speaker 5: want to. He doesn't want to do business with these
- 25:33Speaker 5: people anymore, and I would say most likely Universal Music
- 25:37Speaker 5: doesn't want to do business with him. So maybe that
- 25:40Speaker 5: is the outcome releases where he gets all he gets
- 25:44Speaker 5: the return or reversion of all of his masters, and
- 25:49Speaker 5: that could be part of the game here. I don't
- 25:51Speaker 5: want to use the word game because it's it's serious
- 25:53Speaker 5: civil litigation, but that could be part of what he's
- 25:57Speaker 5: looking for.
- 25:58Speaker 4: A lot of artists are problematic.
- 26:00Speaker 1: Do you think that Universal really doesn't want to deal
- 26:02Speaker 1: with Drake anymore?
- 26:04Speaker 4: Considering his success?
- 26:07Speaker 5: It's a great question, why would you give into this
- 26:10Speaker 5: and drop it? But no judge is going to keep
- 26:13Speaker 5: two people together It don't get along anymore. Eventually, there's
- 26:17Speaker 5: going to be a decision about the ownership of these
- 26:19Speaker 5: masters and the reversion. I think that's not in these
- 26:21Speaker 5: two suits, but we know that's coming. So if you're
- 26:25Speaker 5: not getting along with your and if they're just a
- 26:28Speaker 5: distributor and promo arm and you don't feel they're doing
- 26:32Speaker 5: the job, yeah you want out. Does that mean he'll
- 26:36Speaker 5: get all of the masters back. We don't know. Does
- 26:38Speaker 5: that mean he'll get prior masters up until this day
- 26:42Speaker 5: or the day of the decision, stay with Universal for
- 26:44Speaker 5: a period of time. That'll remain to be seen. But
- 26:47Speaker 5: it could be that this is the methodology for Drake
- 26:50Speaker 5: to get himself out of his deals with Universal.
- 26:54Speaker 1: I have to say, this is very confusing, So tell
- 26:58Speaker 1: me what I missed.
- 26:59Speaker 5: There is so much stuff going on because you've got
- 27:03Speaker 5: two petitions with one of the same defendants and then
- 27:08Speaker 5: two different defendants in a free complaint action to get
- 27:14Speaker 5: more information about all these different people so they can
- 27:17Speaker 5: then go further in a lawsuit claiming that all of
- 27:21Speaker 5: these things have taken place, and they revolve around really
- 27:25Speaker 5: serious issues in silvil Rico payola is not just civil,
- 27:30Speaker 5: but it's also a crime. Drake has brought up in
- 27:33Speaker 5: the complaints in New York that you know, a long
- 27:35Speaker 5: time ago. I mean, I think two thousand and six
- 27:37Speaker 5: is a long time ago that you settled over a
- 27:40Speaker 5: Paola complaint and you paid out. That doesn't mean it
- 27:44Speaker 5: took place now. But welcome to the modern digital age
- 27:49Speaker 5: involving Paola and bots and other terminology we didn't talk
- 27:56Speaker 5: about with CDs and vinyl. You know, it's a different world.
- 28:00Speaker 5: And this is the twenty twenty four version of what
- 28:04Speaker 5: the nineteen thirty four Paola was, when record companies in
- 28:09Speaker 5: the thirties and forties put one hundred dollars bill inside
- 28:12Speaker 5: the jacket of a vinyl album cover and gave it
- 28:16Speaker 5: to someone at the radio station and wait, not not,
- 28:19Speaker 5: please play this, this is your new favorite song. Now
- 28:22Speaker 5: it's all done digitally, and now we have OLAI and
- 28:25Speaker 5: we have algorithmic ways of doing this, and someone's.
- 28:30Speaker 1: Going to have to prove that also if there was,
- 28:33Speaker 1: you know, the use of bots and things. And Drake
- 28:36Speaker 1: also probably benefited from that at some point.
- 28:38Speaker 5: Right, Yeah, he did. He just didn't benefit benefit from
- 28:43Speaker 5: it the way he felt he should have. I think
- 28:45Speaker 5: he felt and I'm reading these complaints he's suggesting that
- 28:50Speaker 5: it was unfairly weighted against him. That Kendrick Lamar and
- 28:54Speaker 5: the numbers on that Kendrick Lamar track, a particular one
- 28:57Speaker 5: track is like a billion streams. That's you know, Tayler
- 29:01Speaker 5: Swift territory. I mean, Kendrick Lamar and Drake are two
- 29:03Speaker 5: of the biggest names in their specific genre in the world.
- 29:07Speaker 5: These are pop icons now, and this is real money
- 29:12Speaker 5: in the music business. You know, we're talking about substantial income,
- 29:18Speaker 5: substantial accusations that could affect other artists and how their
- 29:23Speaker 5: dealt with If it's true that they are committing payola
- 29:28Speaker 5: and they're doing it through the digital versions of the
- 29:31Speaker 5: one hundred dollars bill in the records leave, maybe people
- 29:34Speaker 5: will be less successful in the future, maybe we won't
- 29:37Speaker 5: have the same numbers. I think right now we're in
- 29:39Speaker 5: this such a world of speculation because of the two filings,
- 29:42Speaker 5: and we have no rejoinders from people yet. We don't
- 29:46Speaker 5: know where we're going on these We don't know if
- 29:48Speaker 5: the courts are going to allow these petitions to ripen
- 29:50Speaker 5: into full complaints and allow this discovery. But if they do,
- 29:55Speaker 5: it's god be very interesting. Hip hop rap is pop
- 29:59Speaker 5: it really, I mean, we're talking about you know, the
- 30:02Speaker 5: most popular artists in the world. And it's not a
- 30:05Speaker 5: narrow focus, it's across every demographic. So all these demographics
- 30:11Speaker 5: listen to this material. And Kendrick Lamarmy, he's been awarded
- 30:14Speaker 5: all kinds of laudatory awards for his poetry lyrics. So
- 30:20Speaker 5: people take both these people very seriously, and as pop spokesperson,
- 30:25Speaker 5: they've decided to focus on each other and are talking
- 30:30Speaker 5: about each other. And in doing that, one party is
- 30:35Speaker 5: saying that record company, Hey, you guys are favoring that
- 30:39Speaker 5: guy over me. No pharisees.
- 30:42Speaker 4: I like that, No pharisees.
- 30:43Speaker 1: That really sums up the whole thing.
- 30:46Speaker 4: Thanks so much.
- 30:46Speaker 1: Ron. That's entertainment attorney Ron Beanstock of Scurrency Holland Beck.
- 30:51Speaker 1: And that's it for this edition of the Bloomberg Law Podcast.
- 30:54Speaker 1: Remember you can always get the latest legal news by
- 30:57Speaker 1: subscribing and listening to the show on Apple podcast, Spotify,
- 31:01Speaker 1: and at Bloomberg dot com, slash podcast, Slash Law.
- 31:04Speaker 4: I'm June Grosso and this is Bloomberg