"BLURRED LINES" AND
INDEMNITY CLAUSES

In the wake of the “Blurred Lines” verdict, are the publishing companies on the hook for any of the that $7.4 million awarded by the jury to Marvin Gaye’s heirs, or do writers Pharrell and Robin Thicke bear the burden entirely?

First off, it should be said that the judge in the case could decide to nullify the verdict entirely or reassess the size of the award.

But even if the result doesn’t change, it appears that unlikely that pubcos Sony/ATV (which has publishing on both Gaye’s “Got to Give It Up” and Pharrell’s portion of “Blurred Lines”) and UMPG (which has Thicke’s portion of the latter song) will be liable.

Why? Because, we’re told, publishers typically insist on a clause in writer contracts that indemnifies them against third-party claims regarding compositions.

Writers without clout and/or without powerful attorneys have little leverage to amend such clauses, whereas those who do have leverage may be able to reduce the scope of the indemnity somewhat. This might involve limiting the writer’s obligation to pay for legal fees only if there is a lawsuit or to cover liability only if there is a final judgment or settlement with the claimant that’s approved by the writer.

In any event, it would seem that the whole of the damages ultimately awarded in the “Blurred Lines” case will come out of Pharrell’s and Thicke’s pockets—even if the pubcos put a lot of that money in those pockets in the first place.