RIAA Keeps Settlement Money, Artists May Sue
Written by enigmax on February 28, 2008Despite collecting an estimated several hundred million dollars in P2P related settlements from the likes of Napster, KaZaA and Bolt, prominent artists’ managers are complaining that so far, they haven’t received any compensation from the labels. According to a lawyer, some are considering legal action.
When EMI, Universal Music and Warner music reached settlement agreements with the likes of Napster, KaZaA and Bolt, they collected hundreds of millions of dollars in compensation - money that was supposed to go to artists whose rights had been allegedly infringed upon when the networks were operating with unlicensed music.
Now, according to an article, the managers of some major artists are getting very impatient, as it appears the very people who were supposed to be compensated - the artists - haven’t received anything from the massive settlements. They say the cash - estimated to be as much as $400m - hasn’t filtered through to their clients and understandably they’re getting very impatient.
Lawyer John Branca, who has represented the likes of The Rolling Stones and Korn, said: “Artist managers and lawyers have been wondering for months when their artists will see money from the copyright settlements and how it will be accounted for.”
Indicating the levels of impatience with the big labels holding the money he added: “Some of them are even talking about filing lawsuits if they don’t get paid soon.”
Of course, EMI, Universal and Warner have a different take on the delay, with sources suggesting that it’s down to the difficulties in deciding who gets what money, based on the levels of copyright infringement for each individual group or artist.
A recording industry on the back foot having spent most of its time fighting the digital revolution rather than becoming part of it, is clearly trying to hang on to every penny, even when it comes to compensating the artists who they claim they were defending by taking legal action in the first place.
Irving Azoff, who manages Christina Aguilera, The Eagles, Van Halen, REO Speedwagon and Seal (amongst others) says it’s hard for artists to get what they deserve from the labels: “They will play hide and seek, but eventually will be forced to pay something,” he said. “The record companies have even tried to credit unrecouped accounts. It’s never easy for an artist to get paid their fair share.”
Typically, the labels see it a different way. An EMI spokeperson said that it was “sharing proceeds from the Napster and Kazaa settlements with artists and writers whose work was infringed upon” while Warner’s said the label is “sharing the Napster settlement with its recording artists and songwriters, and at this stage nearly all settlement monies have been disbursed.”
The Universal spokesman spoke only of the label’s ‘policy’ of sharing “its portion of various settlements with its artists, regardless of whether their contracts require it” with no mention of whether it had actually done this or not.
But typically, when money is involved, things start to get murky. The same sources who suggested the reasons for the delay in making payments are also suggesting that there might not be much money to even give to the artists.
It’s being claimed that after legal bills were subtracted from the hundreds of millions in settlements, there wasn’t much left over to hand out.
Previously: Swedish Record Labels See Filesharing as Virtue
Next: Cashing In on Naive BitTorrent Users
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wow…
Ha, ha. And now RIAA screws the labels and artists. RIAA, why not just fileshare instead.
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Funny how after all that crying and hollering about people infringing on the artist’s rights, as soon as they actually get the money in hand it magically vanishes in paperwork related costs.
And the RIAA wonders why people use P2P in the first place.
i and anyone i know wont buy any thing associated with the riaa
The RIAA thought it was safe in it’s tin suit facing the little guy but with bare ass facing it’s stable of artists. However, when bending over to pick up the soap…
I can’t believe people are surprised by this. RIAA Beach Safety said it all perfectly, about time more American artists woke the fuck up.
@ 67
You’re just p-d off because u have a different viewpoint, being on the other side of file sharing. Don’t tell me, you get all your music for free right, like the DJs?
No need to start calling people names though because of your bad karma. You’re not in charge buddy. Music fans are. You pander to them for your living. Don’t screw with them. If you do it for love, then quit bitchin about file sharers. A lot of it does not infringe on copright you know, and what may do in some obscure way is what it is, and how it will be. Better get used to it. We the people make the rules, and we have spoken. We say it’s fine and dandy and none of us voted it to be illegal.
It’s what I’ve been doing all my life and I’m not about to change now for your sudden attack of obsessive greed. There was never any problem in the past with recording, being considered legally acceptable. Downloading data is no different than radio taping or recording from LP or tape; or even taping from TV, the rights for which were guaranteed by the Sony vs Betamax ruling. Fair use has nothing to do with theft or piracy, as it is merely for personal non-profit use. Anyone who seriously believes that propaganda should be taken out and shot, or locked up and throw away the key. We don’t believe it of course. If you don’t believe it why do you keep spouting it? We have a sixth sense about such things. For instance, we can tell whenever the RIAA is lying. Simply, whenever they open their cake holes to speak. I pass wind in their general direction. Seriously, if I had to pay their extortionist demands on every title I own, it would be more than their entire operation is worth. Think about it. Likewise too for all you thieving artists & music business people who get everything they want for free without having to bother with long tedious file sharing, and you are the ones who can afford it easily you penny pinchers. And you say we are tightwads. We can’t afford it. Your incomes are like a million times higher than ours.
Just goes to show the recording companies aren’t looking out for the artist’s interests (which they implied to be able to sue P2Ps) but only for their own interests. Out of 400m, I bet NONE gets to any artist. Sure am glad those guys aren’t on MY side! So what excuse will they use to steal the next dollar out of our pockets?
Who needs moral high ground when your standing on a mountain of money…
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