Latest / Bloomberg Law / Weekend Law: TikTok Ban, Transgender Ban & Rap Battle
Transcript
- 0:03Speaker 1: This is Bloomberg Law with June Brusso from Bloomberg Radio.
- 0:10Speaker 1: Welcome to the Bloomberg Law Show. I'm June Grosso. TikTok
- 0:13Speaker 1: may disappear in the US next month after an appellate
- 0:17Speaker 1: court upholds a band. Transgender writes at a legal crossroad
- 0:22Speaker 1: as the Supreme Court's conservatives seem ready to uphold a
- 0:25Speaker 1: Tennessee band on gender affirming treatments for miners, and the
- 0:31Speaker 1: rap battle between superstar rappers Drake and Kendrick Lamar ends
- 0:36Speaker 1: up in court sort of.
- 0:38Speaker 2: For all of those that want to save TikTok in America,
- 0:41Speaker 2: vote for Trump.
- 0:42Speaker 3: The other side's closing it up. But I'm now a
- 0:46Speaker 3: big star on TikTok.
- 0:49Speaker 1: Present elect Donald Trump campaigned on saving TikTok as he
- 0:53Speaker 1: courted younger Americans despite trying to force its sale during
- 0:57Speaker 1: his first term. But on Friday, the DC Circuit Court
- 1:01Speaker 1: of Appeals unanimously upheld the new US law which bans
- 1:06Speaker 1: TikTok unless it divests from Chinese ownership, ruling that the
- 1:10Speaker 1: ban doesn't violate free speech rights. The ban will kick
- 1:14Speaker 1: in on January nineteenth, the day before Trump is inaugurated,
- 1:19Speaker 1: and in any event, it's unclear what Trump could do
- 1:22Speaker 1: at this point. The only hope for TikTok, and it's
- 1:25Speaker 1: more than one hundred seventy million American users, appears to
- 1:29Speaker 1: be the Supreme Court, and the company says it will
- 1:32Speaker 1: appeal the decision to the court. Joining me is Eric Goleman,
- 1:36Speaker 1: a professor at Santa Clara University Law School and co
- 1:39Speaker 1: director of the High Tech Law Institute. So, Eric, this
- 1:43Speaker 1: three judge panel unanimously upheld the law banning TikTok. How
- 1:47Speaker 1: did they reach that conclusion?
- 1:49Speaker 4: The majority's view is that the TikTok band satisfied the
- 1:53Speaker 4: highest levels of constitutional scrutiny, that even if it was
- 1:58Speaker 4: conceived as a restriction on speech, that the government's national
- 2:04Speaker 4: security interests were compelling enough to justify the speech restrictive effects.
- 2:10Speaker 1: Did they acknowledge the First Amendment interests at stake here?
- 2:14Speaker 4: Yes, they did. And the majority in fact applied the
- 2:17Speaker 4: highest level of protection that's available for free speech and
- 2:21Speaker 4: still said that this was a justifiable and its intervention.
- 2:24Speaker 4: And that's a rare outcome when a court says that
- 2:27Speaker 4: a law survives that highest level of scrutiny, and usually
- 2:30Speaker 4: it's a sign that the Court is either not actually
- 2:33Speaker 4: taking that test seriously, or that they are bending the
- 2:37Speaker 4: factors in the way that lead to a very unexpected outcome.
- 2:41Speaker 1: The US government didn't offer evidence that China had used
- 2:44Speaker 1: the app to influence US citizens or steal data. Yet
- 2:49Speaker 1: the Court wrote here the government acted solely to protect
- 2:53Speaker 1: that freedom from a foreign adversary nation and to limit
- 2:56Speaker 1: the adversary's ability to gather data on people in the
- 3:00Speaker 1: United States. But there was no evidence of that.
- 3:03Speaker 4: The Court essentially was willing to accept the government's hypothetical
- 3:09Speaker 4: concerns that there could be some adverse outcome to US
- 3:13Speaker 4: democracy should China in the future, at some point choose
- 3:18Speaker 4: to take advantage of whatever leverage it has to manipulate
- 3:23Speaker 4: the content on TikTok. Normally, that kind of hypothetical concern
- 3:28Speaker 4: is too abstract to be recognized by a court. There's
- 3:31Speaker 4: a lot of things that could happen in the future.
- 3:33Speaker 4: We can't use all of those possibilities to justify something
- 3:37Speaker 4: as serious as an incursion on our free speech rights.
- 3:40Speaker 4: So the fact that the Court was one to entertain
- 3:43Speaker 4: that hypothetical is part of how they reached a really
- 3:46Speaker 4: surprising outcome that this law survived the highest level of
- 3:50Speaker 4: the scrutiny. They should not have given as much weight
- 3:53Speaker 4: to that potential hypothetical that had not yet happened.
- 3:58Speaker 1: A part of the government's information was redacted and hidden
- 4:02Speaker 1: from the public as well as the companies TikTok and
- 4:05Speaker 1: Byte Dance, so they had to fight the ban without
- 4:09Speaker 1: all the information.
- 4:10Speaker 4: So there has been a lot of discussion about confidential
- 4:15Speaker 4: or sensitive information regarding TikTok's behavior that has not seen
- 4:19Speaker 4: the light of public day. This court chose to ignore
- 4:23Speaker 4: that data, and it claimed that it was ruling solely
- 4:26Speaker 4: based on publicly available information. They were saying that what's
- 4:30Speaker 4: available in the public was enough to justify the government's intervention.
- 4:35Speaker 1: And this panel consisted of the chief judge, who's a
- 4:38Speaker 1: Barack Obama appointee, a Trump appointee, and a Ronald Reagan appointee,
- 4:44Speaker 1: so it cut across political.
- 4:46Speaker 4: Lines, that's correct. You know, I don't look at this
- 4:49Speaker 4: opinion as a partisan opinion and a deal of course,
- 4:54Speaker 4: the opinions are never partisan, but we sometimes question that,
- 4:58Speaker 4: and of course the efforts to be and TikTok have
- 5:00Speaker 4: been bipartisan. That Day's come from both a Republican president,
- 5:05Speaker 4: a democratic president, and got bipartisan support in Congress, so
- 5:10Speaker 4: I don't really think that the partisan angle really helps here.
- 5:13Speaker 4: I do think that the senophobia, the ongoing relentless criticism
- 5:19Speaker 4: of the Chinese government really carry the day in a
- 5:22Speaker 4: lot of respects for all sides.
- 5:24Speaker 1: So the ban kicks in the day before President elect
- 5:28Speaker 1: Donald Trump is inaugurated, his Justice Department would have to
- 5:33Speaker 1: enforce it. And even though he tried to ban TikTok
- 5:36Speaker 1: during his first term, he said during the most recent
- 5:40Speaker 1: presidential campaign that he's now against a TikTok ban and
- 5:45Speaker 1: would work to save the social media platform. Where does
- 5:48Speaker 1: that all fit in?
- 5:50Speaker 4: I don't know what President Trump is going to do.
- 5:52Speaker 4: Again is statements are wildly and consistent with each other.
- 5:56Speaker 4: The last official act he has taken on this topic
- 5:58Speaker 4: he attempted to ban to so he might have had
- 6:02Speaker 4: a change of part, but we will only know based
- 6:04Speaker 4: on an action. I think the bigger question is will
- 6:07Speaker 4: the Supreme Court have a chance to weigh in before
- 6:10Speaker 4: the deadline that was set in the statute, which seems
- 6:13Speaker 4: highly unlikely, and it would be I think logical for
- 6:18Speaker 4: President Biden to extend the band's implementation until the Supreme
- 6:22Speaker 4: Court has had a chance to weigh in. Of course,
- 6:25Speaker 4: if President Biden does that, then that would the issue
- 6:28Speaker 4: over to President Trump for whatever chaos am I into.
- 6:32Speaker 1: Yeah, so President Biden can grant a ninety day extension
- 6:36Speaker 1: if there's progress toward divestiture. So let's say that Biden
- 6:41Speaker 1: does grant the extension and the Supreme Court does hear
- 6:44Speaker 1: the case on an emergency basis, how likely are they
- 6:48Speaker 1: to block the law at least temporarily.
- 6:51Speaker 4: One of the options available to the Supreme Court will
- 6:53Speaker 4: be to delay the effectiveness of the Act until it
- 6:56Speaker 4: completes this review, And I don't know if they're going
- 6:59Speaker 4: to choose to do that or not. They might be
- 7:01Speaker 4: that is solely an executive function where the government doesn't
- 7:04Speaker 4: have to pursue implementation until the Supreme Court has weighed in.
- 7:08Speaker 4: So the Supreme Court's responses to emergency requests like that
- 7:14Speaker 4: have been somewhat chaotic, and so I'm not sure what
- 7:17Speaker 4: they would do this time.
- 7:18Speaker 1: If the merits question gets to them. Do you have
- 7:21Speaker 1: any feel for how they would view it?
- 7:23Speaker 4: So I do. The TikTok ban really cuts across traditional lines.
- 7:28Speaker 4: It pulls together as a coalition of adherents or supporters
- 7:33Speaker 4: who might otherwise not come together. Whether that's because of
- 7:36Speaker 4: the fears of China or the concerns about national security
- 7:41Speaker 4: or the lack of interest in free speech. The coalitions
- 7:44Speaker 4: just look different when it comes to a TikTok ban
- 7:47Speaker 4: than maybe other kinds of government restrictions. But in July,
- 7:51Speaker 4: the Supreme Court was quite clear that if we are
- 7:54Speaker 4: concerned about bias on social media, the government does not
- 7:59Speaker 4: have right to intervene to de biased or unbiased social media.
- 8:04Speaker 4: It's very explicit in the opinion that the solution to
- 8:08Speaker 4: concerns about editorial discussion on social media is not government censorship.
- 8:12Speaker 4: And the DC Circuits opinion seemed to disregard that. They
- 8:18Speaker 4: didn't really acknowledge that very express concern that was on
- 8:22Speaker 4: the minds of the Supreme Court. So if the Supreme
- 8:25Speaker 4: Court continues at logic, I think there's good reason to
- 8:27Speaker 4: question whether or not the TikTok ban can survive because
- 8:31Speaker 4: the government is in fact trying to de biased the
- 8:35Speaker 4: social media through government intervention. But we don't know if
- 8:39Speaker 4: the Supreme Court really met we said, or they will
- 8:41Speaker 4: see this as a qualitatively different circumstance for your favorite reason.
- 8:45Speaker 4: So it's really hard to particut where the Supreme Court
- 8:48Speaker 4: might come out. And it's even more troubling if they
- 8:51Speaker 4: try to do a rush job. They're going to do
- 8:53Speaker 4: a rush job then don't have the time and flexibility
- 8:56Speaker 4: to really try to even get in sync with each
- 8:58Speaker 4: other and coordinate their statements of justifications.
- 9:03Speaker 1: So what actually happens on January nineteenth on the deadline
- 9:09Speaker 1: for TikTok?
- 9:10Speaker 4: So the main thing is that on that day we
- 9:13Speaker 4: would assume that the app stores will take TikTok out
- 9:15Speaker 4: of their offerings. The app stores are really a key
- 9:18Speaker 4: player in this conversation, and they're essentially invisible in the
- 9:22Speaker 4: court's opinion and in public discussion. The app stores didn't
- 9:25Speaker 4: weigh in, for example, on the bands. They're just sitting
- 9:28Speaker 4: silently waiting for people to tell them what to do.
- 9:31Speaker 4: So if the government tells the app stores to kick
- 9:33Speaker 4: TikTok out of its app stores, that's going to be
- 9:35Speaker 4: the first step in the shrinking of TikTok's user base.
- 9:40Speaker 4: There may be ways to get TikTok installed otherwise, and
- 9:44Speaker 4: you know, I'm sure some people will try, but over time,
- 9:46Speaker 4: if it's really hard to install an app that app
- 9:48Speaker 4: starts to wither away. Whether or not there will be
- 9:51Speaker 4: any further destructions to the enjoyment of TikTok by people
- 9:55Speaker 4: who have it already installed is unclear to me. We'll
- 9:58Speaker 4: have to see. But if an app isn't growing like TikTok,
- 10:02Speaker 4: you know, its futures already filed or faded. Of course,
- 10:06Speaker 4: there's a possibility TikTok will try to find some kind
- 10:08Speaker 4: of last ditch sale, and that, of course would solve
- 10:12Speaker 4: the problem, but it's something that TikTok has repeated says
- 10:14Speaker 4: that they cannot do. So we're like living in terra nova.
- 10:17Speaker 4: That way, we don't really know what the world looks
- 10:19Speaker 4: like when a government like ours decides to just.
- 10:22Speaker 1: Ban an app, an out that one hundred and seventy
- 10:25Speaker 1: million Americans.
- 10:26Speaker 4: Use, and many of them are incredibly passionate about their use.
- 10:30Speaker 4: And when I talk to my students about this, and
- 10:32Speaker 4: at the beginning of the semester in the Internet Law,
- 10:34Speaker 4: they were shocked about the fact that Congress had banned
- 10:37Speaker 4: the app. They can't imagine that Congress would do something
- 10:39Speaker 4: that was so contrary to their interests. And I think
- 10:42Speaker 4: many of those one hundred and seventy million users are
- 10:44Speaker 4: in for a very big surprise very soon if the
- 10:48Speaker 4: Supreme Court doesn't reach a different conclusion.
- 10:50Speaker 1: Theoretically, suppose the Trump administration decides it's not going to
- 10:55Speaker 1: enforce it, it's not going to tell the apps to
- 10:57Speaker 1: remove TikTok. I mean, is that possible.
- 10:59Speaker 4: It's possible, but it's unclear that that solves any problem.
- 11:03Speaker 4: If the US government were to issue a statement to
- 11:08Speaker 4: the app stores that they're free to continue carrying TikTok
- 11:12Speaker 4: without fear of government prosecution, you could imagine app stores
- 11:15Speaker 4: feeling like that's a sufficiently credible statement to rely upon it.
- 11:20Speaker 4: But if it comes from the Trump administration, which is
- 11:23Speaker 4: notorious for flip flopping on policy matters, I can't see
- 11:27Speaker 4: how that would give any app store any confidence. If
- 11:30Speaker 4: it were by decision, knowing that there's severe sanctions for violation,
- 11:35Speaker 4: knowing that that gives leverage to a mercurial government, I
- 11:39Speaker 4: wouldn't play by those rules.
- 11:41Speaker 1: Does it seem like Meta and Google have the most
- 11:44Speaker 1: to gain from a TikTok ban?
- 11:46Speaker 4: Well, we know that Facebook ran its own quote influence
- 11:50Speaker 4: operation painting TikTok for many years, they spent millions of
- 11:54Speaker 4: dollars trying to portray TikTok as an evil actor in Washington,
- 11:59Speaker 4: d c. And so in that respect, not only do
- 12:03Speaker 4: they seem to see some financial benefit to knocking TikTok
- 12:06Speaker 4: out of the market, but it seems like, I guess
- 12:08Speaker 4: working so far. So you know, we could certainly see
- 12:12Speaker 4: why Facebook might view this as a net win for it.
- 12:16Speaker 4: From my perspective, if the government can choose winners and
- 12:19Speaker 4: losers in the speech marketplace, there's no reasonably Facebook is
- 12:22Speaker 4: going to avoid that. So they're playing with fire. But
- 12:25Speaker 4: Facebook has chosen to play with fire, and so far
- 12:28Speaker 4: it seems to be working for them.
- 12:29Speaker 1: Well, it seemed to work. On Friday, the day of
- 12:31Speaker 1: the Court's decision, Meta shares surged as much as three
- 12:35Speaker 1: point four percent to an intra day record. Google was
- 12:39Speaker 1: up as much as one point four percent. Thanks so
- 12:42Speaker 1: much for your inside Eric. That's professor Eric Goleman of
- 12:45Speaker 1: Santa Clara University Law School, coming up next on the
- 12:48Speaker 1: Bloomberg Law Show. It's the most high profile case of
- 12:52Speaker 1: the Supreme Court term so far, and the Court's conservative
- 12:56Speaker 1: justices seem ready to uphold a Tennessee lawn gender affirming
- 13:01Speaker 1: treatments for miners. We'll talk to counsel for the transgender
- 13:05Speaker 1: teenagers and their parents who are challenging the law. I'm
- 13:09Speaker 1: June Grosso and you're listening to Bloomberg.
- 13:12Speaker 5: Tennessee claims the sex base mind drawing is justified to
- 13:16Speaker 5: protect children, but SB one has taken away the only
- 13:20Speaker 5: treatment that relieved years of suffering for each of the
- 13:24Speaker 5: adolescent plaintiffs.
- 13:25Speaker 1: It was a historic day at the Supreme Court on Wednesday,
- 13:29Speaker 1: as ACLU lawyer Chase Strangio became the first transgender attorney
- 13:34Speaker 1: ever to argue a case at the Court. Three transgender
- 13:38Speaker 1: teenagers and their families are challenging a Tennessee law that
- 13:43Speaker 1: bans doctors from prescribing puberty blockers and hormone treatments to
- 13:47Speaker 1: miners with gender dysphoria, arguing that the law unconstitutionally discriminates
- 13:53Speaker 1: against transgender people based on their sex. The Court's three
- 13:57Speaker 1: liberal justices, like Elena Kagan, were pointed in their criticism
- 14:01Speaker 1: of the law and Tennessee's argument that the laws bans
- 14:05Speaker 1: are based on medical purposes and not sex.
- 14:08Speaker 6: It's a dodge to say that this is not based
- 14:11Speaker 6: on sex.
- 14:11Speaker 3: It's based on medical purpose.
- 14:13Speaker 5: When the medical purpose is utterly and entirely about sex.
- 14:18Speaker 1: However, the conservative justice is, like Chief Justice John Roberts
- 14:22Speaker 1: and Justice Brett Kavanaugh, expressed reluctance to get into the
- 14:26Speaker 1: middle of the medical and policy debate and second guess
- 14:30Speaker 1: the judgments of state lawmakers.
- 14:32Speaker 2: You know, we may think that we're you know, we
- 14:34Speaker 2: can do just as good a job with respect to
- 14:38Speaker 2: the evidence here as you know, Tennessee or anybody else.
- 14:43Speaker 2: But my understanding is that the Constitution leaves that question
- 14:47Speaker 2: to the people's representatives rather than to nine people, none
- 14:53Speaker 2: of whom is a doctor.
- 14:54Speaker 6: If the Constitution doesn't take sides, if they're strong, forceful
- 14:59Speaker 6: scientific policy arguments on both sides, in a situation like this,
- 15:05Speaker 6: why isn't it best to leave it to the democratic process?
- 15:08Speaker 1: Liberal Justice Sonya Sotomayor had the answer, noting that transgender
- 15:13Speaker 1: people make up less than one percent of the US population.
- 15:17Speaker 7: When you're one percent of the population or less, very
- 15:21Speaker 7: hard to see how the democratic.
- 15:23Speaker 2: Process is going to protect you.
- 15:25Speaker 7: Well, you, blacks were a much larger part of the population,
- 15:29Speaker 7: and it didn't protect them. It didn't protect women for
- 15:34Speaker 7: whole centuries.
- 15:36Speaker 1: An indication of how the arguments were going. Liberal Justice
- 15:40Speaker 1: Katanji Brown Jackson said she was worried that the court
- 15:43Speaker 1: would undermine bedrock principles of equal protection analysis and the
- 15:48Speaker 1: legal basis of landmark constitutional rulings like Loving versus Virginia,
- 15:53Speaker 1: which struck down Virginia's ban on interracial marriage in nineteen
- 15:57Speaker 1: sixty seven.
- 15:59Speaker 8: And I guess, Mike, real concern and I maybe I'll
- 16:01Speaker 8: just ask you to react to my Loving parallel, because
- 16:04Speaker 8: I'm getting kind of nervous. Is that in Loving, those
- 16:08Speaker 8: same kinds of scientific arguments were made.
- 16:11Speaker 1: Joining me is the counsel for the transgender teenagers and
- 16:15Speaker 1: their families in this case, David Cole, a professor at
- 16:18Speaker 1: Georgetown Law who was until recently the national legal director
- 16:22Speaker 1: for the American Civil Liberties Union. David, I know you're
- 16:25Speaker 1: in the courtroom with the teenagers and their families for
- 16:29Speaker 1: the oral arguments. What's your general impression of the arguments?
- 16:33Speaker 3: Well, it was a spirited argument. It was an argument
- 16:37Speaker 3: in which I think a number of the conservative justices
- 16:40Speaker 3: expressed concern about how they are supposed to review a
- 16:45Speaker 3: judgment that involves medical scientific evidence and uncertainty, but also
- 16:52Speaker 3: where you know, there was really no good response to
- 16:55Speaker 3: the contention, our contention that the law discriminates on the
- 16:59Speaker 3: base of sex. It allows medical treatment if it is
- 17:03Speaker 3: consistent with the sex that one is assigned at birth.
- 17:06Speaker 3: It bars the treatment if it is inconsistent with your
- 17:11Speaker 3: sex assigned at birth. When you tell someone that you
- 17:13Speaker 3: can do something only if it's consistent with your sex,
- 17:16Speaker 3: that is a sex based classification. If you told people
- 17:19Speaker 3: you can only pursue careers that are consistent with your sex,
- 17:22Speaker 3: everyone recognized, but that's a sex based classification. So while
- 17:26Speaker 3: some of the conservative members are concerned about the medical
- 17:28Speaker 3: issues that underlie this case, the question in the case
- 17:33Speaker 3: was simply what is the proper standard of review and
- 17:36Speaker 3: is this actually sex discrimination?
- 17:38Speaker 1: It seemed to me like the liberal justices discussed that,
- 17:40Speaker 1: but the Conservatives stayed away from that issue. The Tennessee
- 17:44Speaker 1: Attorney General argued that the law restricts the use of
- 17:47Speaker 1: drugs based on medical purpose, not based on sex.
- 17:51Speaker 3: Yeah, that's what he says. But if you read the
- 17:53Speaker 3: law on its face, you can get medical treatment if
- 17:57Speaker 3: it is consistent with your sex assigned at birth. You
- 18:00Speaker 3: can't get the same treatment if it allows you to
- 18:03Speaker 3: live or identify inconsistent with your sex assign it birth,
- 18:07Speaker 3: and that is a sex classification is enforcing particular, you know,
- 18:11Speaker 3: sexual stereotypes on people. If you have a birth sex
- 18:15Speaker 3: of male, you can get treatment if you want to masculinize,
- 18:18Speaker 3: but you can't get treatment if you want to feminize.
- 18:21Speaker 3: And the opposite rule applies to birth sex female. That's
- 18:24Speaker 3: treating boys and girls differently by seeking to enforce gender conformity.
- 18:29Speaker 1: Some of the conservative justices, particularly the Chief Justice and
- 18:34Speaker 1: Justice Kavanaugh, said that you know, we're judges, we're not doctors.
- 18:38Speaker 1: Let's leave it up to the lawmakers. They don't always
- 18:41Speaker 1: leave it up to the lawmakers.
- 18:43Speaker 3: Right, you leave certain things up to the lawmakers, But
- 18:45Speaker 3: you don't leave equal protection of the law up to
- 18:48Speaker 3: the lawmakers. You don't leave constitutional rights up to the lawmakers.
- 18:52Speaker 3: And those same conservative justices were quite willing and ready
- 18:57Speaker 3: to review COVID regulations which were imposed for public health
- 19:02Speaker 3: reasons at a time when people were dying by the
- 19:05Speaker 3: tens of thousands, and to strike down those regulations that
- 19:09Speaker 3: they felt interfered with religious free exercise rights. The same
- 19:14Speaker 3: thing is true here. Yes, it's in the area of
- 19:16Speaker 3: medical regulation. Yes, that's something that judges don't ordinarily do.
- 19:21Speaker 3: But when you discriminate on the basis of sex, as
- 19:24Speaker 3: this statute does on its face, the Court's obligation is
- 19:27Speaker 3: to make sure that the state has demonstrated that this
- 19:31Speaker 3: span a categorical ban is necessary to further the interest
- 19:35Speaker 3: that they assert. That's what the Constitution demands, and there's
- 19:39Speaker 3: no exception for medical treatment that says you can discriminate
- 19:43Speaker 3: on the basis of sex when you're engaged in medical treatment.
- 19:45Speaker 1: Towards the end of the oral arguments, Justice Katanji Brown
- 19:48Speaker 1: Jackson said she was worried and nervous. I've never heard
- 19:53Speaker 1: of justice say anything like that in an oral argument before.
- 19:58Speaker 3: Yeah, well, I think she was acting to many of
- 20:01Speaker 3: her conservative colleagues who seem to not want to engage
- 20:06Speaker 3: with the principal question in the case, whether it's sex discrimination,
- 20:11Speaker 3: and instead wanted to engage on whether there's medical uncertainty
- 20:15Speaker 3: and what the evidence shows, questions that are really not
- 20:19Speaker 3: before them, and with the suggestion that if it's a
- 20:22Speaker 3: hard question and if there's medical uncertainty, we ought to
- 20:26Speaker 3: accept a law that discriminates on its face as sex
- 20:30Speaker 3: base and accept it as somehow sex neutral. And you
- 20:33Speaker 3: know she was concerned because those kinds of arguments were
- 20:36Speaker 3: made by the State of Virginia in Loving versus Virginia,
- 20:40Speaker 3: in defending a law that prohibited interracial marriage. The state said,
- 20:45Speaker 3: and she quoted it in court, that there's a scientific
- 20:48Speaker 3: evidence that supports prohibiting people from marrying across races, and
- 20:53Speaker 3: this is not a race classification because it applies to
- 20:57Speaker 3: whites and blacks equally. The Court rejected that and said, no,
- 21:01Speaker 3: when it determines what you can do based on your race,
- 21:03Speaker 3: that's a race classification. Same thing here. When the law
- 21:07Speaker 3: determines what you can do based on your sex, and
- 21:09Speaker 3: whether you are acting in a way that the State
- 21:11Speaker 3: of Tennessee thinks is consistent with how it thinks people
- 21:15Speaker 3: of your sex should act, that's a sex classification.
- 21:19Speaker 1: I found it odd that Justice Neil Gorsich, who wrote
- 21:22Speaker 1: the Supreme Court's landmark decision that protected LGBTQ people from
- 21:28Speaker 1: discrimination in the workplace, was silent during two and a
- 21:32Speaker 1: half hours of arguments, didn't ask one question.
- 21:36Speaker 3: Yeah, now, that was odd. And I argued the boss
- 21:38Speaker 3: Stock case, in which behalf of Amy Stevens transgender woman
- 21:42Speaker 3: who was fired from a funeral home when she came
- 21:45Speaker 3: out as transgender, and he was very active in that case.
- 21:48Speaker 3: You know, I read that as he may be uncertain
- 21:50Speaker 3: about where he is in this case, and so he
- 21:53Speaker 3: wanted to sit back and listen and hear what other
- 21:55Speaker 3: people said rather than speak up, especially because he wrote
- 22:00Speaker 3: the boss Stock decision. But you know, the Bosstock decision
- 22:03Speaker 3: said that when you discriminate against someone because they are transgender,
- 22:06Speaker 3: that is, by definition, as a matter of logic, discriminating
- 22:10Speaker 3: against them because of their sex, treating them differently because
- 22:13Speaker 3: of their sex. If that's the case, then certainly a
- 22:16Speaker 3: law that on its face says you can get treatment
- 22:19Speaker 3: if you do it consistent with your sex, and you
- 22:21Speaker 3: can't get treatment if you do it inconsistent with your
- 22:24Speaker 3: sex should also be subject to heightened scrutiny as sex discrimination.
- 22:28Speaker 3: So we'll see how he votes, but he gave no indication.
- 22:32Speaker 1: So there seems to be a consensus among the legal
- 22:35Speaker 1: pundits and Supreme Court reporters that there are five votes
- 22:40Speaker 1: to uphold Tennessee's ban. Do you agree with that?
- 22:44Speaker 3: I think the five conservatives who spoke all expressed some
- 22:49Speaker 3: unease with recognizing that this sex discrimination. You know, maybe
- 22:54Speaker 3: that when they go back into their conference and they
- 22:57Speaker 3: study the matter further, they may decide, you know, a
- 23:01Speaker 3: law that on its face defines what can be done
- 23:03Speaker 3: and what can't be done based on whether it's consistent
- 23:05Speaker 3: with sex or inconsistent with sex, is sex based, and
- 23:09Speaker 3: it would be ludicrous to suggest it's not. It may
- 23:12Speaker 3: be that the law could satisfy heightened scrutiny on remand,
- 23:16Speaker 3: and they could say, you know, that heightened scrutiny should
- 23:19Speaker 3: apply with a softer touch when you're dealing with issues
- 23:22Speaker 3: of medical uncertainty. So I don't think it's absolutely clear
- 23:26Speaker 3: that our side lost, but certainly five justices expressed some
- 23:30Speaker 3: discomfort with ruling in our favor.
- 23:32Speaker 1: This is a fraught time for transgender Americans. Donald Trump
- 23:37Speaker 1: campaigned on a pledge to roll back transgender rights. If
- 23:42Speaker 1: the Justice is affirm the Tennessee ban, what does that
- 23:46Speaker 1: mean for transgender rights in this country.
- 23:49Speaker 3: You're absolutely right that this is a time where one
- 23:52Speaker 3: side of the aisle is targeting trans people for political exploitation.
- 23:57Speaker 3: For the Court to sort of allow that to happen
- 24:00Speaker 3: and to say that a law of this type that
- 24:03Speaker 3: is facially sex based, is somehow sex neutral, and can
- 24:07Speaker 3: be upheld without any searching inquiry into whether the state
- 24:12Speaker 3: has a legitimate interest in whether it is furthering it
- 24:14Speaker 3: in the tailored way. Would just open the door to
- 24:18Speaker 3: rampant anti transdiscrimination across the country. And as was pointed
- 24:23Speaker 3: out at argument, if it's okay for Tennessee to do this,
- 24:26Speaker 3: then it would be okay for the entire country for
- 24:29Speaker 3: Congress to do this, to deny to every trans youth
- 24:33Speaker 3: and every parent of every trans youth who has determined
- 24:36Speaker 3: that this treatment is medically necessary with their doctors, to
- 24:41Speaker 3: deny them the ability to get it anywhere in this country.
- 24:45Speaker 3: There would be no bar to such a draconian policy.
- 24:48Speaker 3: So I think that would be a terrible, terrible result
- 24:52Speaker 3: for trans people.
- 24:53Speaker 1: How did your clients, particularly the three transgender teenagers, how
- 24:58Speaker 1: did they feel after these arguments?
- 25:01Speaker 3: Well, I think they look to us, but they also
- 25:03Speaker 3: can hear the concerns and I think, you know, some
- 25:06Speaker 3: of the concerns that were articulated were pretty hostile to
- 25:09Speaker 3: who they are, to the plight that they face, to
- 25:12Speaker 3: the really really difficult decisions that you know, parents and
- 25:15Speaker 3: families have to make in these situations, and to hear,
- 25:19Speaker 3: you know, the justices say, well, it's too complicated, it's
- 25:22Speaker 3: too difficult for us to address, even where a statute
- 25:26Speaker 3: on its face discriminates on the basis of sex. Very disappointing,
- 25:30Speaker 3: very disappointing.
- 25:32Speaker 1: It must be such a difficult position for teenagers to
- 25:35Speaker 1: be in. I really appreciate your coming on the show, David.
- 25:38Speaker 1: That's Professor David Cole of Georgetown Law coming up next
- 25:42Speaker 1: on the Bloomberg Law Show. A rap battle in court
- 25:45Speaker 1: sort of. I'm June Grosso. When you're listening to Bloomberg,
- 25:49Speaker 1: I see people.
- 25:55Speaker 4: I mean I Master Hono Depot.
- 26:00Speaker 1: That's hip hop superstar Kendrick Lamar's wildly popular track. Not
- 26:05Speaker 1: like us Lamar's track. This is another hip hop superstar, Drake.
- 26:11Speaker 4: Hey Drake, I.
- 26:12Speaker 6: Hate you like I'm young. You better have a go
- 26:14Speaker 6: to sell black one.
- 26:16Speaker 1: But Drake has taken their bitter rap feud to a
- 26:19Speaker 1: new level, and it may be the first time someone
- 26:22Speaker 1: in a rap battle ran to a court for help.
- 26:25Speaker 1: Drake has filed legal actions in New York and Texas
- 26:29Speaker 1: against Universal Music Group, the parent company of the labels,
- 26:33Speaker 1: for both artists. The theory is that Universal artificially promoted
- 26:38Speaker 1: the song of one of its artists, Kendrick Lamar, that
- 26:41Speaker 1: damaged the reputation and earning potential of Drake, another of
- 26:45Speaker 1: its artists. It seems to be a rather unique approach
- 26:48Speaker 1: in the music industry. Joining me is entertainment attorney Ron Beanstock,
- 26:53Speaker 1: a partner at Scrency hollandeck Ron. These aren't lawsuits yet.
- 26:58Speaker 1: Tell us about the first filed in New York, which
- 27:01Speaker 1: is a civil rico preaction suit.
- 27:04Speaker 9: Yeah, so we've got actually parallel pre complaint filings known
- 27:09Speaker 9: as petitions, one in New York, one in Texas. The
- 27:12Speaker 9: pre complaint, if you will, in New York, is based
- 27:15Speaker 9: upon the relationship between Universal and Spotify. Spotify is the
- 27:20Speaker 9: number one streaming service in the world, where Universal is
- 27:23Speaker 9: one of the three major giant music business powerhouses, both
- 27:27Speaker 9: with records publishing interests, and have both artists Kendrick Lamar
- 27:31Speaker 9: and Drake through two different divisions signed to Universal Music Group,
- 27:35Speaker 9: which makes it even more confusing. But the petitions are
- 27:39Speaker 9: looking for depositions and information to establish a full complaint
- 27:46Speaker 9: cause of action against these defendants for in New York,
- 27:50Speaker 9: specifically payola, which is a nineteen thirty four law. I
- 27:55Speaker 9: once said payola to some people under thirty. They thought
- 27:58Speaker 9: I was making that word up. Pola is the illegal
- 28:01Speaker 9: payment to a radio station or could be any other
- 28:05Speaker 9: now in the digital age, another platform to play a
- 28:08Speaker 9: specific artist or specific piece of music. So in New
- 28:12Speaker 9: York it involves Spotify. In Texas it involves iHeart Radio.
- 28:16Speaker 9: There's some fascinating facts about this New York petition. New
- 28:20Speaker 9: Music Universal Music owns three point two seven percent of Spotify.
- 28:25Speaker 9: That would have been something we wouldn't have seen in
- 28:27Speaker 9: the past, but the majors all have an interest now
- 28:29Speaker 9: in Spotify, and that Spotify pays annually in terms of
- 28:34Speaker 9: streaming and other download income, but mostly streaming income, over
- 28:37Speaker 9: two point five billion dollars to New music. So this
- 28:39Speaker 9: is a huge relationship. When you switch to the Texas action,
- 28:44Speaker 9: that really involves iHeart Radio, the number one radio station
- 28:47Speaker 9: in the country, and there's been as a pre complaint says,
- 28:50Speaker 9: a syndiotic relationship between new music and iHeartRadio. New music
- 28:55Speaker 9: controls a vast number of hits of the last decade,
- 28:59Speaker 9: and so if you want to have access to those
- 29:01Speaker 9: h you're going to be close to the company it
- 29:04Speaker 9: supplies that content to you.
- 29:06Speaker 1: So break it down for us. What does the first
- 29:09Speaker 1: petition in New York claim?
- 29:11Speaker 9: So the first petition in New York says, effectively, hey,
- 29:14Speaker 9: you favored Kendrick Lamar in this now sort of infamous
- 29:18Speaker 9: rap beef as we would call this relatively new phenomena,
- 29:23Speaker 9: if you will, not this East coast West coast thing,
- 29:25Speaker 9: but this very specific rapper versus rapper beef, which are
- 29:28Speaker 9: both on the same label. The New York petition says,
- 29:31Speaker 9: you favored Kendrick Lamar. You boosted his song versus mine
- 29:36Speaker 9: in this dispute. We're having, this musical dispute we're having,
- 29:39Speaker 9: and you favored him on it, and you paid someone
- 29:42Speaker 9: in terms of Spotify to stream more of it, and
- 29:45Speaker 9: you took advantage of what you could take advantage of
- 29:48Speaker 9: to give this artist's favor over me.
- 29:51Speaker 1: So what's the point of a preaction suit. What are
- 29:54Speaker 1: they looking for?
- 29:55Speaker 9: They're looking for discovery. It's kind of like saying information
- 29:58Speaker 9: and belief. They're saying, Hey, we think we've got some proof,
- 30:01Speaker 9: but we don't have the exact verbiage we need. We
- 30:05Speaker 9: need some facts. So to prove our facts that we
- 30:07Speaker 9: can go and file a formal complaint with a litany
- 30:11Speaker 9: of issues. Here, we want to have pre complaint discovery
- 30:15Speaker 9: kind of like an expedited discovery, both in New York
- 30:19Speaker 9: involving Spotify and new music, and then in Texas a
- 30:23Speaker 9: very similar theory where we're saying there was Payola committed
- 30:26Speaker 9: again with the iHeart Radio station, the national chain station.
- 30:32Speaker 9: We want to have expedited discovery so we can go
- 30:35Speaker 9: find out the facts. We want to talk to people
- 30:37Speaker 9: from New Music. We want to talk to people from
- 30:39Speaker 9: iHeartRadio to get the facts so we can have a
- 30:42Speaker 9: more formal complaint file.
- 30:44Speaker 1: So just focusing on New York for a moment, do
- 30:47Speaker 1: you think that they'll be able to get that.
- 30:49Speaker 9: It's a tough hurdle to get over here saying we
- 30:53Speaker 9: don't have enough, but we want you as the core
- 30:56Speaker 9: system to provide us the right to go and do this.
- 30:59Speaker 9: I don't know they've established enough initially with this pre
- 31:03Speaker 9: complaint petition. It will be really up to the court
- 31:05Speaker 9: to allow some limited scope of discovery. Maybe they'll do that.
- 31:09Speaker 9: I don't think this is going to be some wide
- 31:10Speaker 9: open fields. Get to talk to anyone you want. I
- 31:12Speaker 9: think they're going to be very narrow to grasp some
- 31:15Speaker 9: of those facts to see if they can get to
- 31:17Speaker 9: the complaint stage. Remember, we're in state court or not
- 31:19Speaker 9: in federal court, so a lot of the dismissal issues
- 31:22Speaker 9: and the standards for dismissal are slightly different in New
- 31:25Speaker 9: York and in Texas.
- 31:26Speaker 1: Now is the Texas action about defamation.
- 31:30Speaker 9: It's a combination. It is again a Payola plane saying
- 31:35Speaker 9: you favored Kendrick Lamar versus me, Drake. You favored this artist,
- 31:40Speaker 9: and you took advantage of your relationship and the power
- 31:43Speaker 9: you yield as a powerhouse, major record company and content owner,
- 31:49Speaker 9: and you took advantage of that, and you preferred getting
- 31:52Speaker 9: this guy boosted versus me, and you did it through iHeartRadio.
- 31:56Speaker 9: Then there's this defammatory language which kind of runs through
- 32:00Speaker 9: both of the petitions, but more specifically in Texas says
- 32:05Speaker 9: you knew what he was saying could be false or
- 32:09Speaker 9: was false, and you allowed him to put that into lyrics.
- 32:12Speaker 9: This all took place this year, and you allowed him
- 32:15Speaker 9: to put this into lyrics, and you let that into
- 32:18Speaker 9: the marketplace. There's a side moment, and I wanted to
- 32:21Speaker 9: bring this one issue up. I don't have Kendrick Lamar's
- 32:23Speaker 9: recording agreement because that's going to be confidential. But generally
- 32:26Speaker 9: with record labels, the artist has a warranty and representation
- 32:32Speaker 9: that they won't the fame, that they won't infringe on
- 32:35Speaker 9: someone else's copyright and things of this nature, and if
- 32:38Speaker 9: they do, they will have to indemnify the record company. Now,
- 32:41Speaker 9: I haven't seen anybody bring this up yet because maybe
- 32:44Speaker 9: we just don't know. And this is purely speculative because
- 32:47Speaker 9: Drake has not sued Kendrick Lamar personally in either of
- 32:51Speaker 9: these pre complaint petitions. But if he's looking to get
- 32:56Speaker 9: some fiscal come up in this may be the way.
- 33:00Speaker 9: Because of Kendrick Lamar's accused of defamatory lyrics, then he
- 33:04Speaker 9: may have to defend by indemnifying your music against any
- 33:09Speaker 9: of these future lawsuits.
- 33:11Speaker 1: Why is he not suing or bringing these petitions against
- 33:15Speaker 1: Kendrick Lamar.
- 33:16Speaker 9: Question of the day is it because I mean, we're
- 33:20Speaker 9: going to speculate, Well, it's infamatory, so we're saying, hey,
- 33:24Speaker 9: you claim these things are defamatory, but truth is the
- 33:26Speaker 9: absolute defense. So if Kendrick Lamar has proof or knows
- 33:29Speaker 9: these things to be true and can show that that's
- 33:32Speaker 9: not going to carry the day. That's not a good
- 33:34Speaker 9: idea for Drake. So I think that there's a lot
- 33:38Speaker 9: of personal issues going back and forth, but in the
- 33:41Speaker 9: guise of a business petition lawsuit where we are looking
- 33:45Speaker 9: to make ourselves get even with somebody in a clear
- 33:50Speaker 9: battle of entertainment stalwarts kingpins, if you will, where one
- 33:55Speaker 9: did not get to success the other did. Perhaps there
- 33:59Speaker 9: was you played unfair as new music. The winner here
- 34:03Speaker 9: is Universal Music, unless they of course are going to
- 34:06Speaker 9: eventually have to pay out. And if there's a decision
- 34:09Speaker 9: against them, but they win both ways, you know it's
- 34:11Speaker 9: going to happen. All of these songs are boosted by
- 34:13Speaker 9: these lawsuits. People go right back and start listening again.
- 34:16Speaker 9: And there's all kinds of other issues that took place.
- 34:18Speaker 9: I mean, Drake sold a portion of this catalog this year.
- 34:21Speaker 9: There's one hundred and fifty million dollars buy up in October.
- 34:23Speaker 9: All this is taking place now, and there's also this
- 34:26Speaker 9: prior lawsuit that's copyright infringement involving Drake and the producer
- 34:30Speaker 9: Chris Brown. So Drake has some real experience here in
- 34:35Speaker 9: the courtroom in this last year, lots of filings and
- 34:39Speaker 9: lots of accusations, a lot of things going on. It's
- 34:42Speaker 9: a lot to keep track of.
- 34:45Speaker 1: There's been some speculation that Drake is using this to
- 34:50Speaker 1: get information from Universal to somehow get out of his deal.
- 34:55Speaker 9: Yeah, that seems one of the most likely outcomes of this.
- 35:00Speaker 9: We all know getting out of record deals. Now again,
- 35:02Speaker 9: I'm not privy to know the structure of his agreement.
- 35:05Speaker 9: People have called a licensed feel in the press. That's
- 35:08Speaker 9: a different relationship. That means he owns his masters and
- 35:11Speaker 9: he's licensed them. But if you have a long term
- 35:13Speaker 9: licensed deeal and you want to pull back the ownership
- 35:16Speaker 9: of those masters that you're releasing, this could be one
- 35:20Speaker 9: way of doing that. Clearly, he doesn't want to do
- 35:22Speaker 9: business with these people anymore, and I would say most
- 35:25Speaker 9: likely Universal Music doesn't want to do business with him.
- 35:28Speaker 9: So maybe that is the outcome of releases where he
- 35:32Speaker 9: can get the return or reversion of all of his masters.
- 35:36Speaker 9: That could be part of the game here. I don't
- 35:38Speaker 9: want to use the word game because it's serious civil litigation,
- 35:41Speaker 9: but that could be part of what he's looking for.
- 35:43Speaker 1: A lot of artists are problematic. Do you think that
- 35:46Speaker 1: Universal really doesn't want to deal with Drake anymore considering
- 35:50Speaker 1: his success?
- 35:52Speaker 9: It's a great question, why would you give into this
- 35:55Speaker 9: and drop it? But no judge is going to keep
- 35:57Speaker 9: two people together it don't get along anymore. Eventually, there's
- 36:00Speaker 9: going to be a decision about the ownership of these
- 36:02Speaker 9: masters and the reversion. I think that's not in these
- 36:05Speaker 9: two suits, but we know that's coming. So if you're
- 36:07Speaker 9: not getting along, and if they're just a distributor and
- 36:10Speaker 9: promo arm and you don't feel they're doing the job, yeah,
- 36:14Speaker 9: you want out. Does that mean he'll get all of
- 36:17Speaker 9: the masters back. We don't know. Doesn't mean he'll get
- 36:20Speaker 9: prior masters up until this day or the day of
- 36:23Speaker 9: the decision stay with Universal for a period of time
- 36:26Speaker 9: that remains to be seen. But it could be that
- 36:28Speaker 9: this is a methodology for Drake to get himself out
- 36:32Speaker 9: of his deal with Universal.
- 36:33Speaker 1: I have to say, this is very confusing, So tell
- 36:37Speaker 1: me what I missed.
- 36:38Speaker 9: There is so much stuff going on. Welcome to the
- 36:42Speaker 9: modern digital age, involving paola and bots and other terminology
- 36:48Speaker 9: we didn't talk about with CDs and vinyl. It's a
- 36:51Speaker 9: different world and This is the twenty twenty four version
- 36:54Speaker 9: of what the nineteen thirty four payola was when record
- 36:59Speaker 9: companies in the thies and forties put one hundred dollars
- 37:01Speaker 9: bill inside the jacket of a vital album cover and
- 37:05Speaker 9: gave it to someone at the radio station and wait,
- 37:07Speaker 9: not not, please play this, this is your new favorite song.
- 37:10Speaker 9: Now it's all done digitally, and now we have OLAI
- 37:14Speaker 9: and we have algorithmic ways of doing this, and someone's
- 37:17Speaker 9: going to have to prove that.
- 37:19Speaker 1: Also if there was, you know, the use of bots
- 37:22Speaker 1: and things, and Drake also probably benefited from that at
- 37:25Speaker 1: some point.
- 37:26Speaker 9: Right, Yeah, he did. He just didn't benefit benefit from
- 37:30Speaker 9: it the way he felt he should have. I'm reading
- 37:33Speaker 9: these complaints. He's suggesting that it was unfairly weighted against him.
- 37:38Speaker 9: That Kendrick Lamar and the numbers on that Kendrick Lamar
- 37:41Speaker 9: track is like a billion streams. That's you know, Taylor
- 37:44Speaker 9: Swift territory. I mean, Kendrick Lamar and Drake are two
- 37:47Speaker 9: of the biggest names in their specific genre in the world.
- 37:50Speaker 9: These are pop icons now, and this is real money
- 37:55Speaker 9: in the music business. You know, we're talking about substantialing
- 38:00Speaker 9: come substantial accusations that could affect other artists and how
- 38:04Speaker 9: they're dealt with. If it's true that they are committing
- 38:08Speaker 9: payola and they're doing it through the digital versions of
- 38:11Speaker 9: the one hundred dollars bill in the record sleeve, maybe
- 38:14Speaker 9: people will be less successful in the future. Maybe we
- 38:17Speaker 9: won't have the same numbers.
- 38:18Speaker 1: We may learn more very soon. A hearing is set
- 38:21Speaker 1: for December nineteenth in Texas and January sixteenth in New York.
- 38:26Speaker 1: Fascinating almost cases. Thanks so much, Ron. That's Ron Beanstock
- 38:30Speaker 1: of Scurrency, Holland Beck. And that's it for this edition
- 38:33Speaker 1: of the Bloomberg Law Podcast. Remember you can always get
- 38:36Speaker 1: the latest legal news by subscribing and listening to the
- 38:39Speaker 1: show on Apple Podcasts, Spotify, and at Bloomberg dot com,
- 38:43Speaker 1: slash podcast, slash Law. I'm June Grosso and this is
- 38:48Speaker 1: Bloomberg