Ticketmaster sues eBay's StubHub over sales tactics

Ticketmaster this week accused eBay's StubHub subsidiary of improperly obtaining and auctioning off premium seats to a spring concert tour featuring Lynyrd Skynrd.

In a complaint filed Wednesday in Los Angeles County Superior Court, the West Hollywood, Calif.-based company claims StubHub has been interfering with its agreements with clients, which typically grant Ticketmaster exclusive rights to sell tickets for events to the general public and "generally" bar it from using the services of other ticketing companies.

StubHub was aware that Ticketmaster had such a deal with the Rowdy Frynds Tour but proceeded to indirectly or directly acquire tickets for those shows anyway and to market itself as the "official" provider of premium seats, according to the court filing by Ticketmaster, which is owned by IAC/InterActiveCorp.

Although the complaint focuses on the Rowdy Frynds tour, it claims StubHub has repeatedly sought to interfere in Ticketmaster contracts over the past two years as "part of a larger scheme to diminish Ticketmaster's role in the sale of tickets generally" and to sully Ticketmaster's reputation as a provider of the "best seats available."

StubHub, for its part, denied any wrongdoing. "StubHub believes the lawsuit filed by Ticketmaster is without merit and intends to vigorously defend itself against these unsubstantiated claims," spokesman Sean Pate said Friday.

Vector Management, the company that organized the tour, declined to comment on the suit.

StubHub, which eBay acquired earlier this year for $310 million in cash, bills itself as an online marketplace where music and sports fans can buy and sell tickets at "fair market value." The company announced in a press release last month that thanks to a "special partnership" with the Rowdy Frynds tour, which features Lynyrd Skynrd and Hank Williams Jr., it would be offering front-row seats through an "exclusive auction" and up to 100 seats in the first 10 rows for all 20 show dates.

According to Ticketmaster's complaint, Stubhub used "improper" tactics to steal away seats that should have been in Ticketmaster's inventory. Sometimes StubHub acquired the tickets by negotiating deals with artists for tickets, and at other times its representatives threatened venues that they would "not be chosen to host future events" unless they sold StubHub a certain number of premium seats, the complaint said.

Ticketmaster has asked that StubHub be ordered to pay back all of the money it has acquired through the allegedly "unlawful and improper business practices," along with punitive damages and a permanent injunction barring future improper sales. The complaint did not mention how many tickets were at stake.

The latest lawsuit appears to reflect the ticket titan's mounting frustration with secondary sellers it claims are interfering with the exclusive business deals it brokers with event venues.

Earlier this week, Ticketmaster also filed four separate suits in federal court in California. They target RMG Technologies, a company that allegedly makes software that allows users to grab large chunks of seats to be resold at a profit, and a number of individuals who allegedly employed bots and automated devices to access Ticketmaster servers in violation of the company's terms of service and federal computer crime laws.

More from News.com on this story's topics

Lawsuits

Create an email alert | RSS feed

Auctions

RSS feed

eBay

Create an email alert | RSS feed

See more CNET content tagged:
StubHub Inc., Ticketmaster Corp., ticket, eBay Inc., seat

Add a Comment (Log in or register) 7 comments (Page 1 of 1)
eh...
by Astinsan April 20, 2007 1:23 PM PDT
Sounds like Ticketsomethingorother is fading away... Maybe like the record companies... Not making enough money so its time to sue the competition.
Reply to this comment
Am I supposed to cry for their monopoly?
by paulreid99 April 20, 2007 1:32 PM PDT
I, for one, am glad there's competition.
Reply to this comment
Buying Tickets Sucks Anyways
by mwyner April 20, 2007 1:45 PM PDT
It'd be nice if I, as a real concertgoer, would actually have a chance to get decent seats at a reasonable price before the brokers and resellers got their crummy paws on them. Maybe this is the start of something like that...
Reply to this comment
so what
by R Me April 20, 2007 2:07 PM PDT
I have been so disgusted with trying to buy tickets that cost 4x more than they should and for very poor seats at that. Try to get good seats without paying a weeks wages is like trying to buy water in hell. As a result I plan never to go to a concert again. I know, it wont matter. There are more than enough people ready to use their CC to pay big bucks, cause they got big bucks the rest of us don't. But at least I wont be a part of the fleecing of poor people.
Reply to this comment
Pitty none of the SOB's
by appletoys April 20, 2007 2:55 PM PDT
I tried to buy (again for the umteenth million times) some decent seats for the RUSH concernt and got sh*t seats. (But at least I'm going) I even sent Ticketmaster an email about this. Their just as f*cked up as the rest. When AmericanExpress can let (their) privileged view or any other (except radio in support of the artist) buy tickets BEFORE the general population is NO DIFFERENT than scalping!!! So Ticketmaster, get your Sh*t together FIRST before accusing others. Ripoff! ATTENTION ALL ARTIST!!! Take control of your business BEFORE you loose your FANS FOREVER!!!
Reply to this comment
Ticketsheister needs a competitor!
by robbtuck April 23, 2007 2:50 PM PDT
I'm sick of the ever-increasing fees and ticket prices. Let's find a way to put Ticketmaster out of business! Boycott all TM events!
Reply to this comment
Get Over It Ticketmaster
by TicketSnob January 9, 2008 2:45 PM PST
Tickets are a commodity that just like anything else should be bought and sold for fair market price. Besides the consumer will eventually find the fairest price especially with sites like Tickex who tell you what all the primary and secondary vendors have in one place.
Reply to this comment
Powered by Jive Software
advertisement
RSS Feeds
Add headlines from CNET News.com to your homepage or feedreader.
Google
Yahoo
MSN
More feeds available in our RSS feed index.
Today's Top Stories
Mono offers open-source spin on Silverlight
Birthing pains in colonization of the social Web
iPhone expands its empire, once again
Georgia law aims to lure video game makers
This VC forecast scares the pants off of me
Most Popular Stories
CBS to buy CNET Networks
Images: Microsoft telescope puts universe on your desktop
Intel Germany executive reportedly confirms Atom-based iPhone
If Gates is right, how much longer for keyboards & mice?
Photos: Microsoft previews 2008 Xbox games
Resource center from News.com sponsors
You can do more when your phone runs Windows®
Windows Mobile

See it all at StartDoingMore.com Start Doing More

Start doing more
Get More Done with Windows Mobile

There's so much more you can do when your phone runs Windows. StartDoingMore.com>

Familiar Microsoft Software and Services

With a Windows Mobile phone, your easy-to-use Microsoft software go wherever you go.

Choose the perfect phone for you

Side, flip, qwerty, touchscreen? See More>

Markets

Market news, charts, SEC filings, and more

Related quotes

eBay (-2.91%) -0.93 31.00
Dow Jones Industrials (-0.53%) -68.96 12,923.70
S&P 500 (-0.52%) -7.41 1,416.16
NASDAQ (-1.00%) -25.23 2,508.50
CNET TECH (-0.82%) -14.56 1,768.19
  Symbol Lookup
See video that entertains and explains the latest in tech
See video that entertains and explains the latest in tech

See video that entertains and explains the latest in tech
advertisement
Click Here
On MovieTome: SEX AND THE CITY clips are here!
Advanced
search
Advanced
search
Visit other CNET Networks sites: