Innovative Artists and Warner Bros.

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This case is based on a real situation between Innovative Artists and Warner Bros. The lawsuit that resulted from the situation was settled out of court in a confidential settlement. Cases may settle out of court for a number of reasons – the parties do not want the expense of a lawsuit, the parties are uncertain of their likelihood of success, the parties want to avoid any potential negative publicity associated with the situation, etc. Because this case was settled out of court with a confidential settlement, we truly do not know who might have won the lawsuit. There is no real indication of admission of wrongdoing. As such, this case is a good case for a discussion of the ethical aspects of the decision.

 

Innovative Artists Talent and Literary Agency, Inc.

Innovative Artists Talent and Literary Agency, Inc. is an entertainment company that was formed as an independent agency by Scott Harris and Howard Goldberg in 1982 and is based in Santa Monica, California.[1] It began under the name Harris & Goldberg and was a “talent boutique” that became very successful.[2] One of the main goals of this company was to create and maintain quality relationships between its clients and agents.[3] In 1992 the name was changed to Innovative Artists and in 1993 they branched into other areas as well like voiceovers, comedy, commercials, beauty, and hosting.[4] Their main focus is to help actors, directors, and writers collaborate and work on projects together to form entertainment.[5] Innovative Artists has an executive committee that focuses on ensuring the company meets its goals, adapts to the changing entertainment environment and always puts its clients first.[6] Big names like Lilla Crawford who stars in the Broadway revival of Annie and actress and screenwriter, Jennifer Westfeldt, are clients of Innovative artists and used them to jumpstart their careers. [7] Because of their focus on clients and how they draw in talented individuals, Innovative Artists are ranked 8th among talent agencies in LA.[8]

 

Warner Bros. Entertainment

Warner Bros. Entertainment is the global leader in the entertainment business in “all forms of entertainment and their related business across all current and emerging media and platforms.”[9] The company began in 1923 by the Warner brothers Albert, Sam, Harry, and Jack.[10] Their first released film titled “The Jazz Singer” influenced the entertainment industry immensely for decades to come.[11] Warner Bros. has been a creator and distributor of feature films, television programs, animation, videos and DVDs for years.[12] The company has been a leader in utilizing licensing and merchandising to grow brands, expanding distribution chains, and building entertainment franchises across the world. The company produced many Academy Award winners over the years such as Chariots of Fire (1981), Lord of the Rings: The Return of the King (2003), Million Dollar Baby (2004), and Argo (2012). Warner Bros. also created the animated series Looney Tunes.

 

Academy Awards

In 1928, legendary film actor and president of the Academy of Motion Pictures, Douglas Fairbanks, hosted the first Academy Awards ceremony at the Roosevelt Hotel in Los Angeles, California.[13] Now known as the Oscars, the Academy Awards recognize outstanding accomplishments in the realm of motion pictures.[14] There are strict guidelines for a motion picture to be eligible for an Oscar.[15] One of those rules requires that the picture first be shown for at least seven days in a paid theatrical setting in Los Angeles County.[16] If the film is first shown on television, on an airplane, through a pay-per-view channel, or on the internet, the film is not eligible for an award.[17]

Production companies may submit their films to the Academy for consideration.[18] Once a movie is deemed eligible for an award, it is sent out to members of the Academy for review and a vote.[19] Those votes are kept confidential until the night of the awards ceremony.[20]

 

The Interaction

In December 2015, Warner Bros. sent screening copies of its Academy Award contenders to members of the Academy.[21] Two of those films, Creed and In the Heart of the Sea, were sent to Innovative Artists. Innovative Artists, as was the custom, set up a system to share the films within the company for feedback. At Innovative Artists, the film either could be shared on a Google drive or by various in-person showings on the premises. As is always the case, there is significant pressure from friends and family members to see the films before they are released in the studios.

 

The Question

Participants should be put in the position of an employee of Innovative Artists who have been tasked with the distribution of the film at the company. Discussion should center around the most ethical way to gather information from firm members so the official delegate can vote on the films. Inclusion of the pressure for friends and family to see the film should be included.

Epilogue

Both Creed and In the Heart of the Sea appeared online very soon after they were sent out. Warner Bros. hired Deluxe Entertainment Services Group, a security company, which traced the films back to a client of Innovative Artists. The company discovered the films were downloaded to a Google Drive which was accessible by people both inside and outside of Innovative Artists.

Once Innovative artists was notified of the leak, they allowed Warner Bros. to come into their workplace to question employees and investigate. Innovative Artists cooperated with Warner Bros. and deleted the Google Drive account, which was open only for one month. Unfortunately, the films already had been downloaded several times and had possibly made it to other file-sharing sites.

Neither movie was nominated for Best Picture, but there is no evidence as to whether the leak prevented the nominations.[22] Even so, in October 2016, Warner Bros. Entertainment filed a suit against Innovative Artists for copyright violation, accusing them of leaking award screeners onto “file-sharing sites.” Warner Bros. stated that it should have been obvious to Innovative Artists that this activity would violate Warner Bros.’s copyrights. They sought monetary damages and sought to bar them from using any other file-sharing accounts.