A federal judge at a hearing in downtown Los Angeles issued a non-public tentative ruling allowing the major talent agencies to proceed with their antitrust lawsuit against the Writers Guild of America, according to a source who had read a copy of the ruling.
Unions are permitted to regulate agents, but the essence of the agencies lawsuit is that the Writers Guild exceeded its rightful authority when it banned packaging fees and affiliate production, and that the guild is therefore conducting an illegal boycott of non-signatory agencies in violation of antitrust law.
The judge's ruling does not mean that he agrees with the agencies' contention nor that he agrees with the Writers Guild position, but rather that he agrees that the agencies have made enough of a case in their complaint that they are entitled to proceed further down the road towards trial. The Writers Guild is also suing the agencies, alleging that packaging fees violate the law in various ways. The agencies have moved to dismiss those claims and a hearing will be held on that motion to dismiss separately, in January.
Over 7,000 writers fired their agents in April and the guild initiated litigation against the four major agencies at that time. ICM Partners has since dropped out of the legal battle. A number of midsize and smaller agencies have signed the Writers Guild franchise agreement, which in its latest version permits packaging fees to continue during a sunset. And it permits a limited degree of ownership by agencies of affiliates that engage in production.
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