Legal dispute threatens to dry up Picture House

The future of the HMV Picture house is in the balance after a court ruled that certain nights at the venue were in breach of contract with a competitor, part of an increasingly bitter legal battle.

Law Lords last week overturned a ruling whi ch had allowed club nights at the venue. A judge had previously ruled that events were not in breach of an agreement between the club's owners and the owners of Lava-Ignite not to host events providing competition on a “like-by-like” basis.

The decision has led to confusion around the future of the club's late night line-up. Whilst all three of the venue's club nights went ahead as planned last week, a number of local clubbers seemed unclear over the long-term implications of the ruling.

The Journal understands that club hopes to remain open pending an appeal of the latest decision. A spokesperson for the Picture House told The Journal that nights would run as normal this week, but refused to comment on further plans.

The ruling stems from an agreement brokered when Luminar—who own Lava-Ignite in Tollcross—sold the Lothian Road venue to Mama Group for £3.5 million in 2008. As part of the deal, Mama agreed not to host events “in direct competition on a like-for-like basis with the discotheque business of Luminar.”

Sources close to the Picture House have grown increasingly incensed by what they believe is an attempt by the Tollcross club to stifle any attempts to come to an agreement over the issue. The Journal understands that there have been attempts to negotiate a settlement whereby different music is played at the two clubs, but no agreement was reached.

Aidan McIvor, front man of local band Dirty Modern Hero told The Journal: "Picture House club nights are popular and I think that that mix of clientele and the eclectic range of music played make it a really great venue.

“It's a real shame that it has come to this.”

The city’s alternative scene suffered a setback after the Liquid Room was closed as a result of damage from a fire at an adjoining restaurant in December 2008. Whilst a number of its club nights were moved to Faith in the Cowgate, the Picture House has emerged as a leading alternative, hosting gigs by a number of high profile artists.

Staff at the venue also appear to be unclear on their future after last week’s judgment. Meetings have been held with bar staff, but little concrete information has been given on the ramifications of the deal. It is unlikely that current staffing levels could be maintained without the revenue from Friday and Saturday night events.

Events at the Picture House and Lava-Ignite clash on two weekend nights. The Picture House’s 'Adventures in Sound Control' on a Friday run in tandem with Lava-Ignites’ Passion, whilst Beat Control on a Saturday also runs at the same time as Embrace at the Tollcross club.

As Lava-Ignite do not host events on Thursdays, it would seem that popular Thursday club night Octopussy will not be affected by the ruling. Gigs at the venue are also unaffected by the ruling. It has been suggested that a new Tuesday night event could be launched, but again no concrete proposals have been made.

Last weeks decision has sparked opposition from local clubbers, with a Facebook campaign to keep weekend nights at the Picture House running attracting over two thousand members in its first week. Sonny Charles, who set up the group, told The Journal; “The Picture House acts as a student night club, whereas Lava-Ignite runs nights on Fridays and Saturdays for incredibly different audiences.”

After the Picture House announced a number of club nights last year, Lava-Ignite’s owners attempted to gain an injunction on the basis of the agreement. Lawyers acting on behalf of Luminar argued that any “discotheques” which ran at the same time as their events fell under the terms of the deal, whilst Mama’s lawyers argued that only nights that provided direct competition, and attracted similar clientele, were covered.

The case focused on the similarities between the two venues, with witnesses including music critics and a Professor Simon Frith from Edinburgh University.

During the original case, Judge Lord Glennie contrasted the “studenty and trendy” Picture House with “cheesy" Lava-Ignite, which he saw as “a place where people go to pull”.

The original case also involved DJ’s from the two clubs listing songs they played on selected nights. Market research of the local clubbing community found that only 11 percent believed the two clubs provided “like-for-like” competition.

But despite Lord Glennie ruling in favour of the Picture House’s parent company in the original case, that decision was reversed on appeal last week.

Lord Hodge said in a written ruling: “I have reached the view that Luminar are correct in their assertion that the provision prohibited Mama from putting on any disco at which recorded music was played for dances at the times when Luminar were providing such entertainment at their Tollcross venue.”