Radius clause

A radius clause is a form of non-compete clause used in the live music industry, in which a tour promoter stipulates that a performer, for a certain length of time prior to or following an appearance at a concert or festival, must not hold concerts at other locations within a certain radius of the city where they are to perform. In essence, it gives the promoter a form of territorial exclusivity, ensuring that the performer does not book concerts with competing promoters and venues in nearby areas, which can undermine ticket sales for their main event.

Critics in favor of radius clauses have agreed with their intent to protect the investments of organizers into the production and promotion of music events, and that they are a worthwhile trade-off for acts wanting to obtain the expanded exposure that a festival performance can provide. Others have criticized the concept, arguing that they effectively discourage major acts from performing in smaller cities, and are influenced by a profit-oriented mentality in the live events industry. In 2010, the state of Illinois also launched an antitrust investigation into the use of radius clauses by Lollapalooza.

Radius clauses contractually ensure that a particular act does not hold events at competing venues or festivals within a certain distance of a city in which they are scheduled to perform, for a length of time prior to and/or after the performance. For example, a band booked to perform at a venue in San Francisco may be barred from performing in cities within a 60 miles (97 km) radius of San Francisco, for 60 days, before and after the concert. These clauses intend to maximize ticket sales; as an act cannot also perform concerts in smaller, nearby markets, fans in these markets are forced to instead buy tickets for the act in the major market.

The use of radius clauses has been considered controversial by some venue owners—especially those who own small-market venues in proximity to larger markets, or those in markets with a large number of venues—as they affect their ability to book major acts. In the city of Chicago, radius clauses imposed by the city's major music festival Lollapalooza can make it difficult for venues and block parties around the city to book major acts during the lucrative summer months. Similar effects are faced by the Greater Los Angeles Area in the lead-up to the Coachella Festival, although they are not as pronounced as those of Lollapalooza because their radius clauses fall during the winter months.

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