High Court determines jurisdiction in music catalogue dispute

Background

The High Court was tasked with determining jurisdictional issues in a dispute between Hipgnosis SFH 1 Limited and Barry Manilow, along with his associated companies, over a music catalogue agreement. The case, heard by Mr Justice Marcus Smith, revolved around the interpretation of a jurisdiction clause within the agreement.

The Agreement and Dispute

The dispute stemmed from a Music Catalogue Agreement dated 20 March 2020, which outlined the payment of receivables from Manilow's recordings to Hipgnosis. The agreement included an initial and additional purchase price. Hipgnosis claimed that Manilow and his company, Stiletto Entertainment, failed to pay the receivables, while the defendants argued that Hipgnosis had not paid the additional purchase price, justifying their retention of the receivables.

Jurisdictional Clause

The crux of the case was clause 14 of the agreement, which specified that any disputes would be governed by English law and submitted to the exclusive jurisdiction of the English courts. However, it also allowed for claims related to the purchase price to be brought in Los Angeles or New York courts, providing a complex jurisdictional landscape.

Proceedings

Hipgnosis initiated proceedings in England, while the defendants commenced related proceedings in Los Angeles. The defendants argued that the English court lacked jurisdiction over the purchase price claims due to the clause allowing for litigation in the United States.

Court's Analysis

Mr Justice Marcus Smith analysed the jurisdiction clause, noting its broad application but also recognising the specific exception for purchase price claims. He concluded that the clause allowed the defendants to choose between English and US jurisdictions for these claims, irrespective of Hipgnosis's actions.

Judgment

The court ruled in favour of the defendants, granting a stay on the English proceedings related to the purchase price claims, allowing non-purchase price claims to continue in England. This decision underscored the importance of respecting contractual jurisdiction clauses and the autonomy of parties in international agreements.

Implications

This ruling highlights the complexity of jurisdictional clauses in international contracts, particularly in the entertainment industry. It emphasises the need for clear drafting and understanding of jurisdictional agreements to avoid parallel proceedings and potential conflicts in different jurisdictions.

Learn More

For more insights into film and media law, including contracts and jurisdictional issues, see BeCivil's guide to Film and Media Law.

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