Major Labels Settle Suit

[Dan Gould]

Record Labels Must Pay Shortchanged Performers

By LOLA OGUNNAIKE

Published: May 5, 2004

David Bowie may not need the extra money, and Elvis Presley will not be able to spend his windfall. But under an agreement announced yesterday by New York Attorney General Eliot Spitzer, record companies will be sending out checks for outstanding royalties owed to them and thousands of other artists.

Mr. Spitzer said that the settlement, which amounted to nearly $50 million, was the result of a two-year investigation that found the world's largest recording companies had failed to maintain contact with many artists and writers and had stopped making required payments to them.

In an interview after a news conference that was filled with television cameras, Mr. Spitzer said that "an array of explanations" were offered by the record companies, "like `we didn't really pay close attention,' " and none were "persuasive legally."

Already $25 million has been paid out since his office began its investigation, Mr. Spitzer said.

Among the more prominent artists due money are Mr. Bowie, owed $10,698, and Dolly Parton, owed $17,568. Willie Nelson is owned $2,325, Tom Jones $16,399 and Public Enemy $22,766. "It's not like it's hard to find them," Mr. Spitzer said. "You could go to a concert and throw the check at them onstage."

Money owed to artists now dead will go to their estates. Mr. Spitzer stressed that the settlement would bring the most benefit to "an enormous reservoir of artists for whom $500 or $1,000 will matter."

When told that she would receive $3,079, Marian McPartland, an 86-year-old jazz pianist who is the host of "Piano Jazz" on National Public Radio, expressed surprise: "It's always nice to get money without doing anything, but I guess many years ago I did do something."

Under the agreement, Warner Music Group, Bertelsmann Music Group, Sony Music Entertainment and EMI Group must list the names of artists and writers who are owed royalties on their Web sites; place advertisements in leading music-industry trade publications explaining procedures for applying for unclaimed royalties; work with music-industry groups and unions to find artists who are owed royalties; and share artist contact information with one another.

In a statement, Sony Music said, "We applaud the attorney general's efforts to focus attention on this area and sincerely hope that his announcement will encourage additional artists and their heirs to step forward and claim their royalties."

Bob Donnelly, an entertainment lawyer, said he brought the royalty matter to Mr. Spitzer's attention. Mr. Donnelly said that he had planned to file a class-action lawsuit against the music industry, "but every time we'd get a good plaintiff, the record company would offer to pay them."

Mr. Donnelly encouraged Mr. Spitzer to use New York State's abandoned-property law. "The law says that after five years of holding somebody's property that has been theoretically abandoned, you have to turn the money over to the state," Mr. Donnelly said.

Mr. Donnelly had previously secured royalty payments for the Ronettes, Foreigner and Bootsy Collins. "The labels had clearly violated the law" by not transferring the money to the state," he said.

Representatives from artist advocacy groups expressed satisfaction with the settlement. "Any time you can find a new source of income that can assist our constituents in maintaining their dignity and way of life we're happy," said Kendall Minter, chairman of the Rhythm and Blues Foundation.

L. Londell McMillan, a lawyer who helped found the Artist Empowerment Coalition, said the record companies' decision to distribute royalties may represent the beginning of a new era in the industry. "For so long the music business has been operating like the wild, wild West," Mr. McMillan said. "But with things like Enron and WorldCom going on, labels may be finally realizing that it's time to reel things in."

*****************

I wonder what other jazz artists or their descendents will be seeing some $$$.

[Aggie87]

I just read about this on the CNN website as well...

"...Other recipients include jazz saxophonist Gerry Mulligan, who is owed $78,000 and the Fontane Sisters, who are owed nearly $107,000. Morning TV show host Regis Philbin, who recorded an album in 1968, is owed $7,255."""

[Rooster_Ties]

  Dan Gould said:

Under the agreement, Warner Music Group, Bertelsmann Music Group, Sony Music Entertainment and EMI Group must list the names of artists and writers who are owed royalties on their Web sites...

Would be interesting to see the complete list of names. I can't imagine the actual dollar amounts (broken down by artist) would be posted on their web-site(s), though that'd be very interesting to see too.

If anybody stumbled across the complete list(s), please post the link(s) here. I'll keep my eyes out too.

[PHILLYQ]

These are the same music companies that are so concerned with 'artist's rights' when it comes to downloading, but when it comes to paying proper royalties they are a bunch of thieves. What two-faced hypocrites.

[Rooster_Ties]

  PHILLYQ said:

What two-faced hypocrites.

Maybe they should consider moving into Politics.

[Claude]

EMI already has a "Missing Royaltors" webpage, which we had discussed here:

EMI - Missing Royaltors, Time For America's Most Wanted?

[Dan Gould]

I missed that list the first time, thanks for bringing it up, Claude.

On the positive side, EMI doesn't list too many jazz artists, and those they do, none are the "core" Blue Note artists, so I guess they are square with a lot of people. Presumably.

EDIT: For the most simple failure in reading comprehension.

Edited May 5, 2004 by Dan Gould

[neveronfriday]

Let me see. These are the same labels which are going after grandmothers, kids and innocent bystanders to collect "royalties" for illegally downloaded tracks? And then they have huge difficulties finding artists who are basically playing right next door in the club? And they can't find a postal address to mail a check? But Grandmother Jones was easy to track down ... after all she had downloaded three tunes by the Beach Boys.

Man.

Stick them all into a large canvas bag and dump them into the next river.

Scumbags.

[Geoff]

it says George Lewis on the EMI Missing Royalties website.

Is that the Trombone player George Lewis?

If so, it would be pretty easy to contact him.