Victory records claim that ADTR are still obligated to deliver two more albums to the label.
Within the last 24 hours ADTR have announced to fans at a live show that they have been given the all clear from the court to self-release Common Courtesy, despite the statement below from Victory Records.
Despite this minor win for ADTR, they may still end up owing Victory Records two albums and profits derived from Common Courtesy.
While Victory is disappointed with the ruling, and disagrees with the court’s conclusions, it comes as no surprise. Courts rarely grant negative injunctions of this nature, but the circumstances of this case presented a unique opportunity for such a ruling. Having said that, in denying Victory’s motion, the court’s reasoning actually contained silver linings that significantly favored Victory. First, the court held that it supports Victory’s argument about the construction of the recording contract – that ADTR is still obligated to deliver two more albums to Victory — “at last equally, if not more so, than that offered by ADTR.” That is the core issue in this case and the only one that really matters in the end, so Victory is heartened that the court agreed with Victory’s position on that core issue. Also, the sole basis for the court’s denial of the injunction was that Victory would not suffer “irreparable harm” that could not be compensated by money damages if the album were to be self released, in that it has ample evidence to prove its damages against the band (in the form of lost profits if ADTR does proceed to self release Common Courtesy). That is, even if the band self releases it, Victory is likely to be awarded any profits the band makes on that album, plus additional lost profits suffered by Victory based on the fact that Victory would undeniably do a far better job at marketing the album had Victory released it, which is what Victory is known for and is the reason why ADTR signed with Victory in the first place. In sum, it is a “successful” defeat in a way, and one which Victory welcomed because of the manner in which the Court rendered its opinion.
This case will proceed to trial, and Victory is looking forward to the opportunity to vindicate the baseless claims filed by ADTR.
-Robert S. Meloni