Coachella and Soul'd Out End Long-Running Radius Clause Legal Battle
Portland's Soul'd Out Productions and Coachella have settled their long-running 'radius clause' lawsuit, according to recent court documents.
Coachella crowd during sunset performance
The dispute centered on Coachella's radius clause, which prohibits 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 their artist lineup selections.
Soul'd Out Productions challenged the clause after losing multiple artists from their Portland festival due to these restrictions. They argued it violated Oregon and California antitrust laws and created a monopoly in the popular music market.
While a federal judge initially ruled in Coachella's favor in March 2019, an appeals court overturned the decision in May. The case has now been "dismissed with prejudice," with each party bearing their own legal costs.
The abrupt settlement may be linked to COVID-19's impact on the live music industry, as both festivals were canceled in 2020. With uncertainty surrounding live music's return, continuing an expensive legal battle over radius clauses likely became less pressing for both parties.
The resolution comes as the live music industry shows signs of recovery, with Live Nation's stock rising 29% following news of successful COVID-19 vaccine trials, indicating optimism for a 2021 return to live performances.
Businessman checking phone with charts
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