February 20, 2002
Auditors And Royalties
- LA Times - As fans rush to record
stores for their favorite stars' new CDs, some artists
behind the music are getting themselves auditors to make
sure they don't get shortchanged by their labels.
Many musicians and their managers are seeking outside
help in challenging royalty formulas and contracts
that they--and a few courts--have said are denying
them their fair share of the profits.
Last month, shortly before her death, torch singer
Peggy Lee and as many as 300 other performers obtained
a proposed $4.75-million settlement in a class-action
suit that accused their record company of cheating
them out of royalties dating back to the 1940s.
Before Lee, the Ronettes, a '60s group, won a
similar judgment, as did rock singer Meat Loaf,
whose music label paid him an estimated $10
million to drop his royalty suit. Other stars
claiming to have been shortchanged in royalties
include the Dixie Chicks, Merle Haggard,
Tom Petty, John Fogerty, Don Henley,
Courtney Love, Tom Waits and the estates of
Billie Holiday, Patsy Cline and Buddy Holly.
...blah blah blah...
Rocker Tom Petty said he routinely audits
his record companies after every new release.
"I personally have turned up millions of dollars
missing [in royalties]--money that I would not
have been paid without an audit." Petty said
he reached royalty settlements with his record companies.
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