musicNEWS:
Labels Agree To Pay $50 Mil In Back Royalties
05-05-04
Keavin
.
Some of the leading record and music companies
have agreed to payout almost $50 million in unpaid royalties to thousands
of musicians under a settlement agreement. The royalties were not paid
because the record companies supposedly lost contact with the artist and
were unable to disburse payments. Artists that were shortchanged include
big names like Sean Combs, Gloria Estefan, Dolly Parton and David Bowie.
The settlement comes after a two-year investigation
by New York state Attorney General Eliot Spitzer's office. Spitzer spoke
with reporters at a news conference where he explained that new procedures
are being put into place as part of the settlement that will insure that
artists and their descendants will receive the royalty money that is owed
to them.
Once the recording companies have received
royalties, those royalties have to be disbursed to the artists who are
owed those funds," Spitzer said. "There are many artists who struggle.
... They depend on the stream of royalties."
The companies that agreed to the settlement
include 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.
Spitzer told reporters that $25 million
of the previously unpaid royalties has been distributed to the artists,
with $25 million still due.
The settlement includes an agreement that
the record companies will make good-faith efforts in the future to locate
artists that have royalties coming to them. However, if an artist cannot
be located the money will revert to the state.
The RIAA says that their member companies
already attempt to track down artists that are owed royalties and have
begun turning over the unpaid money to state governments to hold until
a legitimate recipient can be located.
"The RIAA member music companies are committed
to ensuring royalties are paid to those who have earned them," said Steven
Marks, general counsel for the RIAA. "The agreements announced today with
the New York State attorney general are the results of two years of cooperative
efforts and reflect our members' determination that the focus stay on making
sure royalties get to their deserving owners: the artists."
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