p2pnet - rss feed: Return $50M, record labels told
p2pnet.net News:- Following a two-year investigation by New York state Attorney General Eliot Spitzer’s office, the Big Five record labels must now return $50 million to musicians they’ve had under contract.
And in future, SONY Music Entertainment, Sony ATV Music Publishing, Warner Music Group, UMG Recordings, Universal Music, EMI Music Publishing, BMG Songs, Careers-BMG Music Publishing, BMG Music and the Harry Fox Agency must, “ensure that the artists and their descendants will receive the compensation to which they are entitled,” said Spitzer in a statement.
The news comes after Spitzer’s office found many artists and writers weren’t being paid royalties because record companies “had failed to maintain contact with the performers and had stopped making required payments,” says a statement here.
This affected both star entertainers with numerous hit recordings “and obscure musicians who may have had only one recording,” says Spitzer.
Under the deal, the recording companies will now:
- List the names of artists and writers who are owed royalty payments on company websites;
- Post advertisements in leading music industry publications explaining procedures for unclaimed royalties;
- Work with music industry groups and unions to locate artists who are owed royalty payments; and
- Share artists’ contact information with other record companies.
In addition, each company has agreed to have the heads of the royalty, accounting and legal departments meet regularly “to review the status of royalty accounts and take steps to improve royalty payment procedures”.
They’ve also agreed to comply with New York State’s Abandoned Property Law, which requires that if an artist or his or her family can’t be found, unclaimed royalties be ‘escheated’ or turned over to the state which would hold the money until a claim is made.
Artists owed royalty payments include David Bowie, Dolly Parton, Harry Belafonte, Liza Minnelli, Dave Matthews, Sean Combs and Gloria Estefan.
Spitzer said the recording companies had improved their efforts to find missing artists since the investigation began two years ago and that, “collectively, the companies had already returned more than $25 million to those who were owed funds”.
May 5th, 2004 at 4:43 am
How the hell do you LOOSE contact with Big Stars like these?????? Lets face it you Scum Bag Major record lables you got BUSTED for doing what you do so well over the last 40 years SCREWING your ARTISTS and they call Filesharers THIEVES???????? Yea Right we all KNOW who the REAL THIEVES are and it’s you BMG SONY UNIVERISAL WARNER and all your sub companies!!!! YOU BASTARDS are the biggest THIEVES to ever LIVE !!! Why don’t you go SUE yourselfs!!!!!!!!!!!!!!!!!! SCREW and SUE thats your new motto “Screw your ARTISTS and SUE your Customers ” and now everone with a brain can SEE THIS!!!!!!!!!!!!!!!!!!!!!!
May 5th, 2004 at 6:17 pm
50M is a drop in the bucket compared to the money the labels have “legally” bilked from artists & songwriters over the years. Unfair contracts and accounting practices are standard business for record labels. The artists & talent that are burned up to make the gravy train roll for music execs are treated with contempt. The exces see themselves as “the hand that feeds” when in fact it’s the artists that make the thing work. I can’t wait until musicians and songwriters collectively figure this out and hang these greedy bastards out to dry.