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Viacom sues Google: The media giant is alleging "massive intentional copyright infringement" of Viacom's entertainment properties on YouTube, which is now owned by Google. The suit, filed this morning in U.S. District Court for the Southern District of New York, seeks more than $1 billion in damages. The complaint claims that almost 160,000 unauthorized clips of Viacom's programming have been available on YouTube. There have been similar suits against YouTube, but this appears to be the biggest of its kind. Reuters
SEC looks at New Century: The OC-based mortgage lender (well, it used to be a mortgage lender) said in a filing this morning that the SEC is conducting a preliminary investigation and that the U.S. Attorney's Office in L.A. is issuing subpoenas. By now, the company has received default notices from its major lenders: Barclays Bank PLC, Guaranty Bank, Morgan Stanley, State Street Global Markets, UBS, etc., and the New York Stock Exchange said it would suspend the stock after falling below two bucks a share. Less than a year ago, it was at $52 a share. Ouch. Reuters
Film consulting: J.P. Morgan, certainly no stranger to Hollywood, is upping the ante with plans for a new unit that will advise filmmakers on everything from financing to merchandising. There may be a market for this sort of thing because studios are increasingly relying on independent production companies for new content. Sounds like J.P. Morgan will try to connect those "content" folks with the more distribution-minded studios. WSJ
Harvey buys Halston: Maybe it's all just a crazy coincidence that film producer Harvey Weinstein has a fashion designer girlfriend, but the Weinstein Co. and a private equity firm are buying Halston, the legendary fashion brand. Weinstein is the executive producer of "Project Runway" and has provided capital and financial advice to Marchesa, a three-year-old fashion label designed by Keren Craig and "the girlfriend," Georgina Chapman. NYT
Another Eisner siting: The Mouse House's former CEO is really getting into this investment stuff. His latest effort: the launch a multimedia studio called Vuguru that will create programming for Internet, mobile, wireless and other digital platforms. Just last week, Eisner and a private equity firm made a $385 million bid for Topps, the baseball card company. Eisner told the NY Post that content coming out of Vuguru will be distributed on various Web sites, including YouTube.
Fashion Square expansion: It seems that the Sherman Oaks mall and environs are just not congested enough, so the Westfield Group plans a big expansion that would add 80 stores and 280,000 square feet (there already are 120 stores). Understandably, nearby residents are in a lather about more traffic on Riverside Drive, Hazeltine Avenue and Woodman Avenue. Westfield says it's all good. Say, doesn't L.A. have a planning office anymore - you know, a place that actually says no to developers? Daily News
3-D coming back: DreamWorks Animation plans to release all its features in 3-D starting in 2009, using a new digital 3-D process that has been gaining traction in Hollywood. There are just over 500 digital 3-D screens in the U.S., but that's expected to expand to several thousand by 2009, as movie exhibitors figure out ways to differentiate the theater-going experience from staying home with a DVD (aside from the sticky floors and rude audience members, that is). Variety
Meruelo charged: Criminal charges were filed by downtown's biggest landlord, Ruchard Meruelo, and the 7th Street produce market he owns, with prosecutors alleging illegal construction, unsanitary conditions and rodent infestation.Not that it's likely to happen, but Meruelo could face up to six months in jail or $1,000 fines for each of the eight misdemeanors. From the LAT:
"Any violations involving the food chain we take very seriously," said Jeffrey Isaacs, chief of the city attorney's criminal branch. "There were some serious health and building and safety codes violations here." The charges paint a grim picture of the wholesale market, where rodents were permitted to breed and live unchecked. Prosecutors also allege that there is no hot water in some of the restrooms and that the building is rife with illegal construction and wiring. The action comes a week after county health officials asked City Atty. Rocky Delgadillo to file charges against the market owners, following a hidden-camera investigation by KNBC-TV Channel 4.
Lacter on radio: This morning's business chat with Steve Julian (7:05) on KPCC covers higher gas prices, narrowing the gender wage gap and the latest on the sale of Tribune Co.
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.