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Relix • October/November 2003
David Versus Goliath, Round II?

Boulder-based band, The String Cheese Incident, along with its ticketing company SCI Ticketing and others, filed a lawsuit in federal court against ticketing giant Ticketmaster in early August. The group, alleging antitrust violations, claims that "Ticketmaster has monopolized the ticketing industry, using its immense market power to prevent competition for the sale of concert tickets," according to the band's press release. Neil L. Glazer, the band's lead lawyer, said, "SCI Ticketing has literally hit the wall in terms of being able to sell tickets directly to fans because of Ticketmaster's anticompetitive practices."

The case has many looking back to the mid '90s, when Pearl Jam filed an antitrust complaint against the company. In their testimony before Congress in June, 1994, the band alleged that certain conduct by Ticketmaster "was unlawfully interfering with our freedom to determine the price and other terms on which tickets to our concerts will be sold." Specifically detailing excessive surcharges and high ticket prices, the band charged that:

". . . Ticketmaster's exclusive arrangements with promoters and venues are unreasonable restraints of trade, and its use of those arrangements to prevent promoters and venues from dealing with Pearl Jam amounts to group boycott. . . . In acting to preclude Pearl Jam and other bands from distributing tickets to their own concerts other than through Ticketmaster, Ticketmaster is unlawfully exercising that monopoly power in violation of Section 2 of the Sherman Act . .. That freedom of choice–a basic principle of competition in this country–does not effectively exist in the music industry today "

A federal investigation was triggered into the company's alleged monopoly and lasted more than a year in an attempt to determine if the exclusive contracts violated antitrust laws. On July 5, 1996 the Justice Department issued a two-sentence statement that said its investigation was closed.

Ticketmaster, in an unusual move, released its own statement the same day SCI held its news conference in New York City, detailing its lawsuit, on August 11. "While it has been company policy to not comment on pending litigation, SCI Ticketing has so distorted this issue in its own public statements that we feel compelled to clarify the record," the statement began. It goes on to state:

"Ticketmaster has always recognized the practice of allowing artists a meaningful allocation of tickets to give away or sell through legitimate fan clubs... The allocation of fan club tickets in excess of historical reasonable levels flies in the face of our contractual guidelines with our clients... SCI has attempted to break valid contracts for its own self-promotion and monetary gain. "

The company response has been a counter-quit against SCI Ticketing "for intentionally interfering with contracts and relationships in which Ticketmaster has made great investments."

While SCl's claims are slightly different in focus than Pearl Jam's, it's clear that they are in the same underdog, David versus Goliath position. However, in the light of recent antitrust settlements, particularly Microsoft, the climate could be more favorable for the band.