Suing Howard
Looking at CBS Radio's case against Howard Stern, UCLA corporate law professor Stephen Bainbridge writes that the now-celestial shock jocker may have talked himself into some serious legal trouble.
The network is suing Stern for breach of contract and misappropriation, contending that during the months he was waiting to start his show on Sirius Satellite Radio, he essentially used CBS's airtime for his own financial benefit, by boosting the value of his Sirius stock. The suit also contends Stern broke the law by getting his sidekicks to make the jump from terrestrial radio with him.
The Doylestown-born Bainbridge writes in TCD Daily:
To the extent Stern induces the sidekicks to break their own employment contracts, there clearly would be a problem. In addition, courts are much less forgiving of employee solicitation when the solicitor has a supervisory role vis-Ã -vis those who are solicited. On the whole, however, this strikes me as a much less clear cut case than the problem of soliciting customers of terrestrial radio to shift to satellite.
On that latter issue, however, the question may be: why did CBS wait so long? My guess is that they didn't want to offend Stern's fans, but once so many of those fans followed Stern to Sirius and Stern's terrestrial radio replacements bombed, CBS no longer had anything to lose.
I blogged about this today too. Amazing story. This is a revenge lawsuit, plain and simple...to say they were unaware that Stern might be using his airtime to sell satellie radios sounds a bit silly.
If CBS wanted to blow good money on litigating, it would have been better spent, and a lot more interesting, to champion Stern's cause against the FCC. In the interim, they could have been banking all the revenue Stern draws while winning plaudits for defending their right to air aural pornography to help start your day.
plus, they raked in the bucks during his final weeks and then turn around and say they were hurt...sure they were but Stern was well within his rights to sign a contract with Sirius effective the moment his Infinity contract was up.
I beg to differ. Although I was a faithful Stern listener (I had a friend make tapes of Stern and send them to me when I was living in Berlin, Germany) I draw the line at the accelleration of his stock payments. If his hype of Sirius had been only to recruit listeners so his new show took off, I might be more sympathetic, but he was using CBS airwaves for personal profit. He had an exclusive contract with Infinity, and his on-air selling of Sirius breached that contract.
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