Record labels agree to $45M settlement of suit

[Velvet]

Canada's four major record labels have tentatively agreed to pay $45 million to resolve a class-action lawsuit involving a number of groups representing the interests of songwriters and music publishers.

In 2008, the estate of American jazz great Chet Baker launched the suit claiming the labels — EMI Music Canada Inc., Sony Music Entertainment Canada Inc., Universal Music Canada Inc. and Warner Music Canada Co. — had not paid the proper royalties for music on the industry's so-called pending list.

The hundreds of thousands of works on that list were released before royalties were arranged, with the expectation that the paperwork and payments would eventually follow.

At the time the statement of claim was filed, the plaintiffs alleged more than 300,000 titles were on the pending list, with $50 million in unpaid royalties outstanding.

The agreement announced Monday was applauded by both sides and also includes a new arrangement to expedite future payments of royalties.

The allegations in the class-action suit were not tested in court and the settlement does not include any admissions of liability or wrongdoing.

The proposed settlement will go before the Superior Court of Justice in Toronto on Feb. 15., at which time any objections to the deal will be raised.

"This agreement reflects the respect the major record labels have for their unpaid rights holders. This is a very good result for songwriters and music publishers," said lawyer Jon Foreman, a co-counsel for the plaintiff.

"This is a very positive outcome for all parties," added Graham Henderson, president of the Canadian Recording Industry Association, speaking for the record labels.

Read more: http://www.cbc.ca/arts/music/story/2011/01/10/royalties-dispute-lawsuit-music-publisher-songwriter.html#ixzz1Af2ej4l2

[Jay Funk Dawg]

I know the guy who started this whole lawsuit. I was working with him 3-4 years ago. The original lawsuit was for $500 million.

I have a feeling he's now out of the picture - he's a bit of a maniac. But we worked on a Toronto Chet Baker festival which featured Randy Brecker, Curtis Fuller and many other sidemen who worked with Chet.