Sugar Baby Love?

Remember the Rubettes - the quintessential 1970’s band? Well, although unfairly dubbed one hit wonders, the issues in relation to the Rubettes have recently received the attention of the Courts and the press.

The group had split up some time ago and under the terms and conditions of a compromise agreement there was confirmation that none of the artists could trade under the band's original name. There was, however, a separate clause which provided that in promotional material the band could be referred to as “the Rubettes featuring one of two of the former lead singers”. The agreement also provided that neither band would trade as “the Rubettes” from an agreed date.

Through a series of statements on websites, advertisement and promotional material, it was claimed that this part of the agreement had been breached. The Chancery Division of the High Court recently gave judgement that each party had an obligation to prevent the promotion of themselves as the original band. Furthermore, the obligation included the taking of reasonable steps in advance of any promotion preventing such an occurrence and, where the bands had been wrongfully described by a third party, taking reasonable steps to correct any errors.

There are key lessons here for companies, commercial and employment lawyers where the fallout from a well-known organisation (or pop group) occurs.

• The drafting of an agreed internal and/or external announcement is key in outlining the basic parameters of what can or cannot be said at the date of any split. It is useful to also agree a form of words or standard comment in the event that there are further questions from the press or interested parties. Ideally this should be encapsulated as a schedule in a compromise agreement or settlement agreement.
• The compromise agreement or settlement agreement must consider all possible outcomes and not just deal with the events following immediate termination. Spelling out the obligations on the parties in the event that there is a possible breach of terms by a third party must be considered.
• It is imperative that the provisions, such as those that appeared in the Rubettes compromise agreement, are carefully policed to ensure that action can be promptly taken to ensure that the terms of the agreement are upheld and expensive litigation is avoided.

The music industry is littered with bands that have enjoyed fleeting success. The revival of seventies and eighties groups has shown that even those who had brief recognition in the charts can come back to appeal to a new audience. This raises a whole host of commercial, employment and intellectual property issues which are best dealt with sooner rather than later.

Please contact David Gibson for further information.

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