Coachella and Soul'd Out End Multi-Year Radius Clause Legal Battle with Settlement
Portland-based Soul'd Out Productions and Coachella have reached a settlement in their long-running 'radius clause' lawsuit, as revealed by recent court documents.
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The dispute centered on Coachella's radius clause, which prohibits performers from playing at other North American music festivals and Southern California venues between December 15th and May 1st. While Coachella maintained this clause protected their lineup curation, Soul'd Out argued it violated antitrust laws and created a market monopoly after several artists withdrew from their festival.
Though a federal judge initially ruled in Coachella's favor in March 2019, an appeals court overturned the decision in May. The case has now concluded with both parties agreeing to dismiss the lawsuit with prejudice, with each side covering their own legal fees.
The sudden settlement likely stems from COVID-19's impact on the live music industry. With both festivals canceled in 2020 and uncertainty surrounding live events' return, continuing an expensive legal battle may have seemed impractical for both parties.
This resolution comes as the live music industry shows signs of recovery, with Live Nation's stock rising 29% following positive COVID-19 vaccine news, signaling potential optimism for festival returns in 2021.
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