Phillip Phillips Trying To Void Contract w/ 19 Entertainment

[Chelsea Press 2]

'American Idol' Winner Files Bold Legal Claim to Escape 'Oppressive' Contracts (Exclusive)
9:50 AM PST 1/26/2015 by Eriq Gardner
Phillip Phillips says he's been "manipulated" and in a move with huge implications, he is seeking to void his recording, management and merchandising deals with 19 Entertainment.

For those who would give almost anything for a chance at superstardom, American Idol might be the entertainment industry's version of a Faustian bargain: Through 14 seasons, the very successful Fox show has exploited the fact that there are millions of singers who are willing to sign onerous deals for the chance to compete. But season 11 winner Phillip Phillips isn't going to let the deals he made as a precursor to his fame go unchallenged.

On Jan. 22, Phillips lodged a bombshell petition with the California Labor Commissioner that asserts that Idol producer 19 Entertainment and its affiliated companies have "manipulated" him into accepting jobs since he hit it big. In a filing that reveals some of Phillips' post-show tribulations, including being forced to perform for free for one of Idol sponsors and not even knowing the title of his last album before it was announced publicly, the singer is seeking to void his various agreements with 19, said by the star's lawyer to be "oppressive, fatally conflicted."

"I am very grateful for the opportunities provided to me through appearing on American Idol," says Phillips. "The value that the fans and the show have given to my career is not lost on me. However, I have not felt that I have been free to conduct my career in a way that I am comfortable with. I look forward to being able to make my own choices about my career and to being able to make great music and play it for my fans."

The petition to determine controversy (read here in full) is grounded on the Talent Agencies Act, the California law that says only licensed talent agents can procure employment for clients. In the past, the law has been used as a cudgel by Hollywood artists from Arsenio Hall to Kesha who wished to escape paying commissions to their managers. Phillips now hopes to have the TAA applied to an entertainment company that has had its hand in his pocket even since he won Idol's 11th season on May 23, 2012.

Before Idol viewers voted him the winner that year, Phillips signed a series of contracts governing his management, merchandising, recording and publishing. The deals are quite favorable to 19 Entertainment, a company founded by Simon Fuller that also produces other shows such as So You Think You Can Dance. For example, according to the complaint, when Phillips does endorsements, 19 gets as much as a 40 percent cut.

Nevertheless, Phillips tells the California Labor Commissioner that 19 has a fiduciary duty to him, and that the company has breached such duty by compelling him to take jobs that are of benefit to the company and its affiliates rather than to him.

In the time since he's been on the show, his managers at 19 have lined up gigs like performing at the NBA All-Star Game, singing "The Star-Spangled Banner" at a World Series game, and appearing on such shows as Letterman, the Today show, Ellen and The View. The appearances are said to have been "procured" by 19 despite not being licensed as an agent. This, the petition argues, amounts to a "pattern and practice of flagrant violations of the [TAA]."

While some of these gigs boosted Phillips' profile and are arguably in his interest, some other appearances by the singer may have done little to boost his career. For example, the petition says he did a live show without compensation promoting JetBlue in 2013.

"In response to Petitioner's questions about why this deal would make sense, 19 admitted the deal was being entered into in exchange for JetBlue's support for the 2013 American Idol Live Appearance Tour," says the petition. "Since Petitioner was not performing on the 2013 Idol Tour, the only conceivable purpose for Respondent booking the performance was to help the struggling finances of Respondent's Idol Tour."

Similarly, Phillips says he performed at a corporate event for an insurance company — only it was labeled an endorsement deal. Raising a problem with this gig, he says 19 took the position that it was subject to the Merchandise Agreement, with a 40 percent commission. Phillips argues, "If Respondent was truly putting Petitioner's best interest above their interests, Respondent should have taken the position that the performances should be commissioned at the 20% commission rate provided for in the Management Agreement."

The petition also chronicles other indignities that Phillips has faced in the past couple of years. He says that 19 lined up a producer for his first two albums that compromised his interests. He says 19 lied to him, saying that the producer wouldn't receive greater mechanical royalty rates than he would. He adds that 19 has repeatedly withheld information regarding his career, including the title of his Behind the Light album released last year.

It's not unusual for those successful on reality TV shows to renegotiate deals at some point in their career. Phillips says that he "frequently requested" this, but suggests that the relationship between his management company and recording company frustrated any hope of doing so. According to the petition, "Because 19 Recordings, Inc. is also Petitioner's record company, 19, as Petitioner's management company, failed to secure even a single improvement to the terms of the Recording Agreement, in breach of Respondent's fiduciary obligations to Petitioner."

Represented by attorney Howard King at King Holmes Paterno & Berliner, Phillips is making a bold and ambitious attempt to bring entertainment companies like 19 within the scope of the TAA, a law that has been controversial since it was added to the books in 1978. Phillips' attempt to challenge his Idol deals figures to spark jurisdictional challenges and raise issues about the corporate structure of 19, which is owned by CORE Media Group. Phillips will likely also have to get around a notable exemption in the TAA for the procurement of recording contracts.

But if Phillips is successful in voiding his deals as a violation of the TAA, the ramifications would be huge — potentially impacting other successful competitors on Idol as well as perhaps other reality TV competition shows. The adjudication of TAA disputes also tends to be a very, very slow process, with rulings often happening many years after the initial filing of a petition. The result of the creeping pace could put a number of deals in legal limbo, undoubtedly a concern as Idol and other shows move forward.

A spokesperson for 19 Entertainment tells The Hollywood Reporter, "We’re very proud of everything we’ve accomplished together with Phillip, working closely to help nurture his extraordinary talent and advance his career. We have always acted in the best interest of Phillip. We will vigorously defend ourselves from any baseless claims to the contrary and from any attempt to interfere with our rights and relationships."

Source

[surfy]

I always knew Idol screwed over their winners careers...

[Chelsea Press 2]

Those contracts are pretty standard and they are ironclad for the most part, and generally benefit the label far more than the artist.

I found this part to be so bizarre:

He adds that 19 has repeatedly withheld information regarding his career, including the title of his Behind the Light album released last year.

If they are intentionally keeping him in the dark about certain decisions, what would the reason be? It doesn't look good when the artist and the label aren't on the same page. Even if he is being tightly managed, he should have some idea of the title of the album at the very least, and of course other key things related to his career.

[YourFaveIsAFlop]

He knew he was signing his life away when he signed up for Idol. It's part of the deal. All of these shows prey on the hopes and dreams of kids who have no idea what they're doing and want to make it big. Now he's made it big and realizes he's screwed himself.

[dbhmr]

Jan 27, 2015 8:54:20 GMT -5 YourFaveIsAFlop said:

He knew he was signing his life away when he signed up for Idol. It's part of the deal. All of these shows prey on the hopes and dreams of kids who have no idea what they're doing and want to make it big. Now he's made it big and realizes he's screwed himself.

"Knew he was signing his life away" and "kids who have no idea what they're doing" seems contradictory to me, and part of the problem. The opportunity to be on these reality shows, make it big, and even have a career to be manipulated probably seems enticing when you have no idea what that actually entails. I understand the company's need to protect themselves and garner a solid return on their investments, but some of what they do and ask for (not revealing album titles, playing for free to bolster another project entirely) are ludicrous.

[loveofmusic]

This story was all over the morning talk shows. 19 has always had too much control & I can see why successful alums try to get away. According to legal analysts that were talking about this case, this is not a lawsuit, but a petition against the California Labor Commission. From legal analysts, they said if he wins his case this will change not only Idol, but all reality shows & their contracts on tv which do some of the same things Phillip is petitioning about. It's more likely they'll pick & choose which points are valid & throw out others.

[Deleted]

Honestly, I have a hard time garnering sympathy for any reality show contest that ends up in a situation like this.

If previous Idol winners have been able to honor contractual obligations for as long as they are expected to, there's no reason why Phillips can't do it, too.

I thought it was basically common sense that when you sign up for any reality show, giving an arm and a leg in exchange for a (possible) shot at 15 minutes of fame, is the price you pay.

The most surprising thing to me is that Phillips (seemingly) believed this show WASN'T out to rob him blind.

[toomuchboy]

I suppose I feel sorry for him, but I can't help thinking he's lucky they managed to help him get success at all--wouldn't have expected it after watching the show that year. I'm surprised they're fighting to keep him anyway; didn't his second album flop?

[¤ Matthea ¤]

The petition:

pmcdeadline2.files.wordpress.com/2015/01/petitiontodeterminecontroversy2015-01-22-wm.pdf

[Robert J]

For what it's worth, Kelly Clarkson basically did the same thing herself (although I'm pretty sure she never actually filed a complaint or anything) before releasing Breakaway.

[Spidey]

How many albums are they contracted to do after winning the show? I always thought it was for one album.

[YourFaveIsAFlop]

What probably really sucks for him is the fact that he wrote or cowrote both of his albums and probably gets next to nothing (if anything at all) from the publishing, which is where singers like him can actually make some money off their songs. The thing with Idol is they really do make the contestants sign their lives away, they own them. And when you're 18 or 19 years old and want to be a famous singer, you don't care. Then you find out what that actually means and you want out, but you're screwed.

[trustypepper]

The more you find out about the music industry, the more disturbing it will be. It really is sickening how business works sometimes. I feel bad for Phillip and any other kids who are fooled by this pretty picture that the TV episodes portray. It's a shame

[loveofmusic]

Jan 28, 2015 11:23:41 GMT -5 YourFaveIsAFlop said:

What probably really sucks for him is the fact that he wrote or cowrote both of his albums and probably gets next to nothing (if anything at all) from the publishing, which is where singers like him can actually make some money off their songs. The thing with Idol is they really do make the contestants sign their lives away, they own them. And when you're 18 or 19 years old and want to be a famous singer, you don't care. Then you find out what that actually means and you want out, but you're screwed.

The problem is his 2 biggest hits "Home" & "Gone, Gone, Gone" were not written by him. Most of his albums are at least with co-writes. His biggest hit that's written by him is "Raging Fire." But that didn't sell that well.

[imbondz]

No one forced Phillips to join American Idol or sign that contract.

He and his attorneys had every opportunity to read the contract before he signed it. So I don't have much sympathy. Without it, no one would know who Phil Phillips is. It's a fine line walked very well by Carrie Underwood IMO. She has never complained publically that I've heard and has always thanked AI. I respect that.

That said, the Record Industry has done this for years not just w reality contestants. I've always believed their greed was their downfall and why the industry crashed in the early 2,000's.

I am not for labels taking advantage of artists, but you have to know what you are getting into before you sign any contract.

[1wxrld]

One of the biggest lawsuits between artists and record labels I suppose is the one raised by George Michael against his company. It disrupted his career for so long. 

Regarding Phillip Phillips, he was certainly on the way down after "Home" and "Gone, Gone, Gone". His later releases "Where We Came From", "Unpack Your Heart" and even "Raging Fire" mentioned here didn't make much in the charts. "Raging Fire" was #58 on Billboard Hot 100. 

Most winners at such talent show contests have a life span of 2-3 years after they win Idol, or X Factor or The Voice etc. Of course there are notable exceptions like Kelly Clarkson and Carrie Underwood, but this is the case in general. Rule of thumb is an immediate hit after win, then a second follow up hit but to a lesser degree, a third minimal hit that won't do much and you're done... Some don't even make it that far and very soon get dropped and forgotten. Who even remembers AI winners like Ruben Studdard, Fantasia Barrino, Jordin Sparks, David Cook. Runners up even fare worse. Here are some runners-up in AI: Justin Guarini, Clay Aiken, Diana DeGarmo, Bo Bice, Katharine McPhee, Blake Lewis, Crystal Bowersox, Lauren Alaina, Jessica Sanchez, Kree Harrison, Jena Irene. Can you name one single hit from those that stuck in your mind? 

When candidates win such shows but don't succeed commercially, they blame bad management of the series that didn't want to support them. Yet when they do succeed as initially happened to Phillips, then yet again complain, but now about terms of the contract. So the companies are darned if they push the artist and get blamed for abusing them, they are darned if they drop them for their lack of appreciation and commitment.

But Phillip Phillips and others may have a genuine ground to complain I'm sure. Because you are actually signing your first 3-4 years anyway (your prime years) at very high percentages to your company. Then you will be dropped in any case and you are on your own. 

I also remembered of what the UK singer Passenger sang in his song "I Hate" where he says: "And I hate the X Factor for murdering music / You bunch of money grabbing pricks". The line comes up at 4:07 in case you don't want to hear the full rendition of "I Hate".

How appropriate to say "You bunch of money grabbing pricks" in a case like this, isn't it. At least if you take Phillip Phillips grievances to heart. I was absolutely enchanted by Phillip Phillips's performances during AI. What's nice and advantageous about Phillips though is that he seems to be a well-grounded chap, and that he is a talented songwriter as well. So he will survive this and go on though at a much lesser publicity.

This lawsuit will strangely help him in publicity he badly needs. Now we can get more interested in him. Bad news sells and you never know, because of this lawsuit, he might get more fame again. And he may find yet again great success just like in his two earlier hits "Home" and "Gone, Gone, Gone"

[imbondz]

Sidenote: It makes no sense to me though how AI or The Voice can't produce more stars. It's ridiculous. Labels have everything they are looking for with a built in fan base

Casadee Pope is my favorite Voice contestant, makes no sense she's not a huge star in music.

[1wxrld]

The Voice has the more dismal record in producing of stars. None of the winners Javier Colon, Jermaine Paul, Cassadee Pope, Danielle Bradbery, Tessanne Chin, Josh Kaufman or Craig Wayne Boyd did have a veritable success after their wins.

American Idol though has been able to produce quite a few well-known charting artists. Some are relevant after so many years, notably Kelly Clarkson and Carrie Underwood, and even from the American Idol non-winners like Jennifer Hudson, Chris Daughtry, Adam Lambert.

[trustypepper]

I'm just wondering how long The Voice is going to stay this popular without actually producing a star. It's amazing to me.

[1wxrld]

Jan 30, 2015 19:25:48 GMT -5 trustypepper said:

I'm just wondering how long The Voice is going to stay this popular without actually producing a star. It's amazing to me.

It's not also clear if The Voice has a similar setup comparable to 19 Entertainment that American Idol does. The winners are certainly offered a signing in with a label and production of an album, but do they have similar contract structure like AI does in which the winners have to sign these disadvantageous contracts, or at least how they perceive them as being unfavourable.

By the way, nothing new here. In Britain, The X Factor which is the popular programme there has faced similar allegations about contracts with the winners. The company signing the artists there is called Syco Music and is owned by Simon Cowell. Syco Music signed the X Factor winners Shayne Ward, Joe McElderry, Matt Cardle, Alexandra Burke, Leona Lewis and James Arthur but they dropped them eventually some after 2 years, some after much longer periods.   



  

[Devil Marlena Nylund]

Jan 29, 2015 18:15:27 GMT -5 1wxrld said:

I also remembered of what the UK singer Passenger sang in his song "I Hate" where he says: "And I hate the X Factor for murdering music / You bunch of money grabbing pricks". The line comes up at 4:07 in case you don't want to hear the full rendition of "I Hate".

That line annoyed me to be honest. It just screams pretentious. They didn't murder music, they just don't do organic music.

But from the business side of it, yeah, they're pricks for ripping off their artists. I think Phillip Phillips could have gone against the norm for American Idol winners really. It sucks that the Idol contract limits their artists from actually succeeding. It's like it's on purpose.

[¤ Matthea ¤]

X Factor UK alums sign with Syco and other Sony labels, but Syco isn't a management firm. Before season 3, the idea was that the winning mentor would manage the winner (original judges Louis Walsh and Sharon Osbourne are both managers) Since Leona Lewis on, they were all handed to Modest! Management. Now there are only a few X Factor alums left with Modest: One Direction, Olly Murs. The others moved to other management firms etc. Now Modest isn't signing X Factor alums anymore. Ella Henderson is with Crown Management, for example.

19 used to be a well oiled machine, but it started falling apart several years ago. I think they were and probably still are a great fit for the top finishers coming right off Idol. However, then comes a point when they turn into a great burden. Once an Idol stops having hits on the radio (often after the first single from debut album), 19 just continues using the Idol to promote the show and does nothing for the artist that would help them going forward. We've seen this story play out so many times it's rather predictable.

The Voice is mostly a game show for the celebrity mentors. The winning pawn gets signed to a label that rarely cares about that pawn and there is no machine behind the show that would care for the pawn.

[Robert J]

Jan 30, 2015 19:25:48 GMT -5 trustypepper said:

I'm just wondering how long The Voice is going to stay this popular without actually producing a star. It's amazing to me.

The thing with The Voice (as opposed to Idol) is that it isn't about finding a superstar. The show puts all of the focus on the judges and their personalities; the contestants are just there to give them something to do all season. X Factor is somewhere in the middle, which is why even though it failed pretty miserably as a series, even it has come closer to producing a star act (Fifth Harmony) than The Voice. If anyone who competed on The Voice ever becomes a star, the show will be mentioned in the same vein as Beyonce's time on Star Search.

[1wxrld]

Jan 31, 2015 10:16:54 GMT -5 Robert J said:

Jan 30, 2015 19:25:48 GMT -5 trustypepper said:

I'm just wondering how long The Voice is going to stay this popular without actually producing a star. It's amazing to me.

The thing with The Voice (as opposed to Idol) is that it isn't about finding a superstar. The show puts all of the focus on the judges and their personalities; the contestants are just there to give them something to do all season.

You may have a point there Robert about the role of the judges (mentors) in The Voice who are far more essential, whereas in Idol, the judges just provide comments on the spot without getting personally involved with the contestants and the final say is to the public vote in general. In The Voice, the judges have their own "team" from after the so-called "blind auditions", whereas in Idol no judge has exclusivity to any one contestant.

Also in The Voice one has to admit has the much better contestants throughout. From Day 1, for example, you feel the auditioning singers have been carefully handpicked, and you don't get the hilariously untalented auditioning artists AI allows in. Also in case of The Voice, some of the judges have great contacts and resources and do try to help the members of their own teams through their own industry connections.

Blake Shelton is a very good example in this in introducing his artists particularly in the country genre. Some of The Voice judges have enormous industry ties, say like CeeLo Green, Usher or Pharrell Williams and are very verbal in saying their relation and commitment to the progress of their team artists will go far beyond the series. How much they do help though in the long run still needs to be proven, and I think their track record in owning up to their team artists is not that good at all.

American X Factor winners Melanie Amaro, Tate Stevens and Alex & Sierra continue to remain virtually unknown. No follow-up after winning.

AI's 19 Entertainment remains the only one to at least own up to the winners for all it's worth.

[maine]

Jan 31, 2015 14:11:22 GMT -5 1wxrld said:

Jan 31, 2015 10:16:54 GMT -5 Robert J said:

The thing with The Voice (as opposed to Idol) is that it isn't about finding a superstar. The show puts all of the focus on the judges and their personalities; the contestants are just there to give them something to do all season.

You may have a point there Robert about the role of the judges (mentors) in The Voice who are far more essential, whereas in Idol, the judges just provide comments on the spot without getting personally involved with the contestants and the final say is to the public vote in general. In The Voice, the judges have their own "team" from after the so-called "blind auditions", whereas in Idol no judge has exclusivity to any one contestant.

Also in The Voice one has to admit has the much better contestants throughout. From Day 1, for example, you feel the auditioning singers have been carefully handpicked, and you don't get the hilariously untalented auditioning artists AI allows in. Also in case of The Voice, some of the judges have great contacts and resources and do try to help the members of their own teams through their own industry connections.

Blake Shelton is a very good example in this in introducing his artists particularly in the country genre. Some of The Voice judges have enormous industry ties, say like CeeLo Green, Usher or Pharrell Williams and are very verbal in saying their relation and commitment to the progress of their team artists will go far beyond the series. How much they do help though in the long run still needs to be proven, and I think their track record in owning up to their team artists is not that good at all.

American X Factor winners Melanie Amaro, Tate Stevens and Alex & Sierra continue to remain virtually unknown. No follow-up after winning.

AI's 19 Entertainment remains the only one to at least own up to the winners for all it's worth.

Alex & Sierra released an album in October 2014... of course they haven't released a follow-up (assuming you mean album). Plus, they debuted in the Top 10 on the Billboard 200 and have a decent following. They haven't had a breakthrough on the radio front sadly though.

[surfy]

Jan 31, 2015 10:16:54 GMT -5 Robert J said:

Jan 30, 2015 19:25:48 GMT -5 trustypepper said:

I'm just wondering how long The Voice is going to stay this popular without actually producing a star. It's amazing to me.

The thing with The Voice (as opposed to Idol) is that it isn't about finding a superstar. The show puts all of the focus on the judges and their personalities; the contestants are just there to give them something to do all season. X Factor is somewhere in the middle, which is why even though it failed pretty miserably as a series, even it has come closer to producing a star act (Fifth Harmony) than The Voice. If anyone who competed on The Voice ever becomes a star, the show will be mentioned in the same vein as Beyonce's time on Star Search.

Definitely this. They even credit the wins to the coaches... they'll say "Blake" won instead of the contestant's name... the whole show is a joke to me.

[trustypepper]

For me The Voice is just getting old. Two seasons a year has caused it to burn quickly for me, while I'm still enjoying American Idol to this day.

[Web]

I think they (The Voice) recognize that the "singing talent show" model is flooding the market and starting to dry up; they want to cash in while they can. Two seasons a year is ridiculous but I'm sure their wallets aren't hurting. In terms of format I like the style of The Voice more than other similar shows but it clearly places no emphasis on its contestants after the show. It's taken a long time but finally a few contestants are starting to grab at least minor hits on radio (Cassadee Pope, RaeLynn, Danielle Bradberry, and now Melanie Martinez).

I still don't see a star being born out of the show, especially if you follow the law of diminishing returns in terms of how many seasons they have left. Viewership has started to dip the past few seasons so I'm curious to see where the show is going to end up a few years down the road.

[HoldTight]

You want to get a career the easy way? Suffer the consequences.

[surfy]

Feb 3, 2015 10:47:16 GMT -5 HoldTight said:

You want to get a career the easy way? Suffer the consequences.

I wouldn't exactly call winning American Idol "the easy way".

Seriously surprised at the lack of sympathy at least in this thread, I understand criticism, but geez this is someone's life and career were talking about.