Coachella's Controversial 'Radius Clause' Lawsuit with Soul'd Out Productions Reaches Settlement
Portland-based Soul'd Out Productions and Coachella have settled 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 prevents performers from playing at other North American music festivals, Southern California venues, and select shows between December 15th and May 1st. Coachella defended this practice as protection against competitors "free-riding on its creative choices," while Soul'd Out argued it violated antitrust laws and created a monopoly on popular music performances.
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 a dismissal "with prejudice, no interest, no costs, and each party to bear its own attorneys' fees."
Experts speculate the COVID-19 pandemic may have influenced the settlement, as both festivals faced cancellations and uncertain futures. With live music temporarily halted and radius clauses currently less relevant, continuing an expensive legal battle may have seemed impractical for both parties.
The timing correlates with positive developments in the live music industry, as evidenced by Live Nation's recent 29% stock increase following Pfizer's COVID-19 vaccine announcement. The industry appears optimistic about resuming live events in 2021, with strong indication of pent-up demand from music fans eager to return to live performances.
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