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Google is still ripping off Sonos’ technology — according to U.S. Customs and Border Protection.
In a public ruling issued Tuesday, the CBP found that Google products including Pixel smartphones, tablets and computers that utilize controller technology invented and patented by Sonos were in violation of a ban issued five months ago by the U.S. International Trade Commission. That previous ruling by the U.S. International Trade Commission ruled that Google had infringed five audio technology patents owned by smart speaker maker Sonos and banned the tech giant from importing the infringing products from China.
Several other products that were previously found to have infringed Sonos patents – including Chromecast, Home and Nest audio players – however, were excluded from the latest ruling, meaning Google can continue to import them for sale.
In the International Trade Commission (ITC) ruling issued in January, the court-like federal agency confirmed that Google had redesigned its products to avoid using the Sonos patents and that those updated versions of its products would not be banned from importation. But Tuesday’s ruling makes clear that Google has continued importing products that infringe at least some of those patents.
“It is CBP’s position that the articles at issue are subject to exclusion from entry for consumption,” the ruling states. The ban will not be lifted, the ruling continues, until Google either “disables or renders inoperable” the infringing patented technology from those devices or pursues a licensing agreement with Sonos for that technology.
Sonos has made clear that it prefers the latter option. Prior to the January ruling, the company had fought to prevent Google from being allowed to sell the redesigned products. In a September filing, it warned the ITC that such a ruling would allow Google to continue importing products that infringed its patents by making only “trivial software changes.”
Following the January ruling, Sonos chief legal officer Eddie Lazarus changed tack a bit, noting that Google could continue selling its revamped products without using Sonos’ patents but warned that doing so would “degrade or eliminate product features” and “sacrifice consumer experience.” He instead urged Google to “pay a fair royalty for the technologies it has misappropriated.”
In its own response to the January ruling, Google claimed it had updated its product designs to cease infringing Sonos’ patents but charged that the smart speaker maker’s original claims were “frivolous.”
“While we disagree with today’s decision, we appreciate that the International Trade Commission has approved our modified designs,” said Google spokesperson José Castañeda at the time. “We will seek further review and continue to defend ourselves against Sonos’ frivolous claims about our partnership and intellectual property.”
But Tuesday’s ruling shows that Sonos wasn’t satisfied that that was the case; according to the document, the company contacted the CBP on March 24, 2022, with claims that Google was continuing to import infringing products. Over the next two months, both Sonos and Google went back and forth with the agency in attempts to resolve the issue, but ultimately it was found that Google did not satisfy the terms required by the ITC ruling in January.
In reaction to the latest ruling, Lazarus said in a statement that the “US Customs Service confirmed that Google was flouting the importation ban and continuing to import infringing products in violation of that ban. This finding marks yet another example of Google continuing to misuse our intellectual property and acting in wholesale disregard of the law. We remain committed to defending our IP and will continue to do so, on behalf of our own technology, as well as the broader innovation landscape.”
Google did not immediately respond to Billboard’s request for comment.
Sonos first sued Google for infringing its patents in January 2020, claiming that Google gained access to those patents via a 2013 partnership through which Sonos integrated Google Play Music into its products. In the same suit, Sonos claimed that Google had also engaged in predatory pricing practices by subsidizing the alleged infringing products, allowing the tech giant to sell them at lower price points.
Tuesday’s CBP ruling applies to just one case involving Sonos’ broader patent dispute against Google. Two separate federal lawsuits are also working their way through the courts, one of which deals with a completely different set of patents.
The hip-hop heavy Day N Vegas festival was canceled on Friday (June 1) due to poor ticket sales, making the event financially unsustainable, according to sources familiar with the situation.
Promoter Goldenvoice knew there was an issue the day after tickets went on sale, June 10, sources tell Billboard. Ticket sales simply did not meet the sales goal that day, or the days that followed. By canceling Friday, with the start of the festival still more than 60 days away, AEG only has to pay 50% of the artist fee — a compromise that was reached with the major talent agencies last year amid touring’s return from the pandemic.
Day N Vegas’ disappointing ticket sales came as a surprise for many since it was Travis Scott‘s first concert since the disastrous Astroworld festival in Houston last November. Plus, the bill featured other heavyweights such as SZA, J. Cole, Playboi Carti, 21 Savage, Baby Keem and Summer Walker. Sources close to the concert promoter blame the location and time of the Day N Vegas, being held on Labor Day Weekend in Las Vegas, which is historically one of the hottest weekends of the month. In 2010 and 2021, Day in Vegas was held in November when the weather is considerably cooler.
Still, the drop in sales came as a surprise for many after the success of the Day N Vegas in 2019, featuring Kendrick Lamar, Travis Scott, J. Cole, Juice WRLD, Tyler, the Creator and Lil Baby.
Across the board, ticket sales are slowing for festivals in the second half of 2022 across the country. The Rolling Loud festival in Miami, July 22-24, which includes headliners Kendrick Lamar, Ye and Future hasn’t sold out yet either.
“There are a lot festivals out there right now and it seems like only those first festivals to go on sale for their sound or genre are the ones that sell out, but everything else that follows has struggled,” one source following the festival space tells Billboard. “It seems like the consumer spent most of the festival money for the year and unless it’s already on sale, there’s not much money left for anything else.”
Disney Channel has provided breakthroughs for some of today’s biggest pop stars, growing from announcing themselves as, “Hi, I’m [insert name] and you’re watching Disney Channel!” to winning Grammys and embarking on sold-out tours.
Former Mickey Mouse Club members Britney Spears, Christina Aguilera and Justin Timberlake grew up to become the faces of teen pop at the turn of the millennium. The following generation of Disney Channel stars, including Demi Lovato, Miley Cyrus and Selena Gomez grew up in a golden era of the network, complete with drama, lots of music and TV shows. Lovato once even called the group “Disney High.”
“We called it ‘Disney High’ because when there’s only a select few of you that can relate to one another, you start dating each other, you become friends with one another, you fall out with one another and then you break up with one another,” they said on a segment of the In Bed with Nick and Megan podcast. “It’s just confusing and dramatic, and that’s ‘Disney High’ for you.”
The latest batch of Disney stars have taken their careers into their own hands, releasing the types of music that feels most authentic to them, without succumbing to the pressure of being a “role model.” Olivia Rodrigo, Zendaya, Bella Thorne, Sabrina Carpenter and Sofia Carson are just some of the few who have become popular in the late 2010’s.
We’ve compiled a roundup of musicians who got their star on Disney Channel. See them in our gallery here.
The Recording Academy released more details about its fee structure for “excess entries” in a memo to all voting members on Friday (July 1).
As previously announced, all professional and voting members of the academy will be allowed to make five courtesy entries every year as a benefit of membership. But members will have to pay a fee for each entry beyond the five allowed unless they are able to obtain a waiver.
In an effort to get voters to vote promptly — rather than wait until just before the voting period closes, as people tend to do — the academy has adopted a multi-tier pricing strategy. “Early bird pricing” (July 18 – July 31) is $40 per entry (after the five courtesy entries). “Standard pricing” (Aug. 1 – Aug. 21) is $75 per entry (after the five courtesy entries). “Final deadline pricing” (Aug. 22 to Aug. 31) is $125 per entry (after the five courtesy entries).
Before this year, there was no limit on the number of entries a member could make. The academy instituted a limit of five entries — unless the member is willing to pay the extra charge — this year for the first time.
In its letter to members, the academy explained its thinking: “The Academy has enacted a per-entry fee structure this year to encourage entrants to consider the value of each entry and make mindful decisions to put forward work that they truly believe is Grammy-worthy… The payment system is built into the OEP [online entry process] website and allows for secure payment by credit card.”
The academy does, however, allow members to appeal the five-entry limit. “In order that the entry fees not be a barrier to entry in the process, our members can request additional courtesy entries by reaching out to the awards department at awards@recordingacademy.com,” the letter reads.
The academy showed similar flexibility the last two years in allowing members to appeal for a waiver of the $100 annual membership dues, if they claimed hardship amid the pandemic. But this year the academy announced that the dues waiver will not be continued for a third year.
The letter to members contained two other newsy items. Among them, for the first time, the academy will let entrants know of the “final placement” of their entries after the screening committees have met but before voting begins.
“In order to improve your voting experience, after our screening committees have met, we will be emailing entrants with the final placement of their entries,” the letter reads. “You will receive this information prior to the first-round ballot, so that you’ll know the final category placement before voting begins.”
The academy must know that this will open the door to last-minute appeals from label executives convinced that their artist is being mis-categorized in the Grammy process. Previously, the academy could say “The ballots have gone out. There’s nothing we can do at this point.” How the academy will handle these last-minute appeals now is unknown.
The letter also specified that there will be only one entry period this year. The academy will open the online entry process for the 65th Annual Grammy Awards at 9 a.m. PST on July 18 and close it on Aug. 31.
Eligible recordings must have been commercially released in the U.S. on one of the approved streaming platforms or through a national third-party retailer (for craft entries) and have been originally released within this eligibility period: Oct. 1, 2021 – Sept. 30, 2022. That is the normal eligibility period, following three consecutive years in which the eligibility period differed from that.
The eligibility year for the 62nd Annual Grammy Awards closed one month early, on Aug. 31, 2019. That change was the result of the Grammy telecast being moved up two weeks to Jan. 26, 2020, to avoid going head-to-head with the 92nd annual Academy Awards. The eligibility period for the 63rd Annual Grammy Awards also closed one month early, on Aug. 31, 2020. That change was due to the pandemic making the academy’s screening process harder. The eligibility period for the 64rd Annual Grammy Awards covered 13 months, from Sept. 1, 2020 to Sept. 30, 2021, as the academy sought to get back on schedule.
The Ledger is a weekly newsletter about the economics of the music business sent to Billboard Pro subscribers. An abbreviated version of the newsletter is published online.
For all the consolidation in the concert industry in the last decade, the festival business remains a diverse array of events operated by independent companies rather than the corporate behemoths. That’s one takeaway from Billboard’s new list of the top 50 music festivals of 2022 that considers the quality, size and cultural impact of the biggest and best events around the globe.
The top 50 list is filled with potential mergers and acquisitions for growth-minded promoters: 35 of the top 50 festivals are owned by either independent promoters or, in a handful of cases, non-profit organizations. Some festivals are fewer than 10 years old and already have a record of accomplishment and significant brand equity. Many of their founders also promote other festivals that didn’t make the list.
In all, 16 of the top festivals are in the hands of two promoters: Live Nation and AEG Presents. Additionally, two publicly traded promoters only have one spot apiece in the top 50: MSG Entertainment (Boston Calling at No. 29) and Germany’s CTS Eventim (Rock am Ring and Rock im Park at No. 44). Together, these corporations make up more than a third of the top 50.
One might view these numbers as proof the biggest companies have taken over the festival market, but it also means two-thirds of the top 50 festivals are still independent. That diversity in ownership represents an opportunity for further consolidation, however, as history has shown that successful festivals are attractive acquisition targets.
Live Nation owns 12 of the top 50 festivals and is a partner in another, Ohana Fest in Dana Point, Calif., that was created by Pearl Jam singer Eddy Vedder. Live Nation has bought — not built — its most successful festivals. Lollapalooza (No. 7) and Austin City Limits (No. 13) came through its acquisition of a majority stake in Austin-based C3 Presents in 2014. It got Bonnaroo (No. 7) through its acquisition of a controlling interest in AC Entertainment in 2016 and bought a majority stake in BottleRock (No. 10) in 2017. Rock in Rio came (No. 19) was acquired in 2018. Splendour in the Grass (No. 18) went to Live Nation through its acquisition of a 51% stake in Australian promoter Secret Sounds Group in 2016. Two Mexican festivals, Vive Latino (No. 40) and Corona Capital Guadalajara (No. 42), are the properties of OCESA, which Live Nation acquired in 2021.
Insomniac, of which Live Nation bought “about” a 50% stake in 2013, has three of the top 50 festivals: Electric Daisy Carnival Las Vegas (No. 3), Electric Forest (No. 21) — which it co-owns with Madison House Presents — and Moonrise (No. 49). HARD Summer came from Live Nation’s acquisition of EDM promoter HARD in 2012.
AEG’s 2001 acquisition of Southern California promoter Goldenvoice gave it what would become the No. 1 festival, Coachella Valley Music and Arts Festival. Goldenvoice debuted its country music offshoot, Stagecoach Festival (No. 9) in 2007 and Day N Vegas (No. 14) in 2019 (this year’s edition of Day N Vegas was canceled on Friday). Hangout Music Festival (No. 39) entered a joint venture with Goldenvoice in 2015 to produce the festival.
Other than Live Nation and AEG, only two companies have ownership in multiple festivals in the top 50. Penske Media Corp. (owner of Billboard) owns a 50% stake in South by Soutwest (No. 5) and a majority stake in Life Is Beautiful (No. 26). Danny Wimmer Presents owns Welcome to Rockville (No. 43) and Bourbon & Beyond (No. 45).
Companies seeking a bigger footprint in Latin markets can target some established brands. Colombia’s Páramo Presenta could be an acquisition target for its 12-year-old festival, Estéreo Picnic. Spain’s Primavera Sound (No. 23), starting with its namesake festival in Barcelona in 2001, also runs festivals in Argentina and Brazil. The four-year-old reggaeton and Latin music-focused Baja Beach Fest (No. 24) is held just south of the U.S. border in Rosarito, Mexico, and attracts a U.S. crowd.
In the U.S., some entrepreneurs have quickly — by festival standards — built successful events into top-tier brands. Seven-year-old Rolling Loud Miami (No. 12) already has offshoots in New York City, Toronto, Portugal and the Netherlands. San Francisco’s Outside Lands Music and Arts Festival (No. 4) was launched in 2008 — that’s young for such an established brand — by Another Planet, Superfly Presents and Starr Hill Presents. Float Fest (No. 47) in Gonzales, Texas launched in 2014 and returns in 2022 after taking three years off.
Three of the top 50 are effectively off limits to M&A because they are owned by non-profit organizations that act as stewards of the festivals’ legacies. These are the oldest and among the most revered festivals: New Orleans Jazz Festival (No. 11), Newport Folk Festival (No. 17) and Roskilde Festival (No. 20). That their founders transferred ownership to charitable organizations speaks to the way some festivals go beyond corporate profit motive and become ingrained in communities’ cultures and identities. All festivals involve private-public partnerships to some extent: communities provide public resources, and many festivals require local government permits that allow events to take place on public lands. But this ensures some of the longest-running festivals — and many smaller ones not on the list — are not going to be swept up in corporate consolidation of the concert business.
STOCKS
Through July 1, the % change over the last week, and the year-to-date change.
Universal Music Group (AS: UMG): 19.12 euros, -4.4%, -22.8% YTD
Spotify (NYSE: SPOT): $97.52, -8.9%, -58.3% YTD
Warner Music Group (Nasdaq: WMG): $24.57, -6.2%, -43.1% YTD
HYBE (KS 352820): KRW 140,000, -5.4%, -59.9% YTD
Live Nation (NYSE: LYV): $83.06, -4.3%, -30.6% YTD
iHeartMedia (Nasdaq: IHRT): $8.07, -1.8%, -61.6% YTD
Cumulus Media (Nasdaq: CMLS): $7.91, +1.2%, -29.7% YTD
Tencent Music Entertainment (NYSE: TME): $5.24, +5.6%, -23.5% YTD
Cloud Village (HKE: 9899): HKD 85.40, +5.5%, -45.7% YTD
Reservoir Media (Nasdaq: RSVR): $6.28, -1.9%, -20.6% YTD
NYSE Composite: 14,636.76, -1.2%, -14.7% YTD
Nasdaq: 11,127.85, -4.1%, -28.9% YTD
S&P 500: 3,825.33, -2.2%, -19.7% YTD
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