Both lawsuits allege that the guild is engaging in an illegal group boycott of agencies that refuse to sign onto the union’s Code of Conduct, introduced in April, that bars both disputed practices. At issue in the litigation is the scope of a union’s right to act anticompetitively — for instance, to call for a boycott — under two specific labor antitrust exemptions, the “statutory exemption” that is written into the law and a judge-made “non-statutory exemption.
Both exemptions provide a safe harbor for union activity, but the agencies contend that the union has strayed onto the high seas and is now subject to potentially massive liability for its actions, including treble damages. The WGA previously responded to WME’s Monday filing by pointing out that a 1975 antitrust lawsuit over packaging fees by a WME predecessor, the William Morris Agency, a judge made a preliminary ruling in the guild’s favor. “There is no merit to WME’s lawsuit, and the Guild will not be bullied into a bad deal,” said the guild.
Given the typical timing of federal cases, it’s likely that the litigation may take 18 to 24 months to resolve, not including potential appeals. Meanwhile, attention now turns to CAA and ICM, one or the other of whom, or both, may also choose to file against the WGA. The agencies have offered to share a portion of packaging fees with writers and to institute transparency and consent guardrails, but the guild has been steadfast in its intent to bar the practices and also to seize power from the agencies. Also in April, over 7,000 WGA members fired their agents under orders from the guild, and the union filed suit against WME, CAA, UTA and ICM in a parallel attempt to bar packaging fees. That suit is currently on hold though, pending procedural moves.
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