Want to read Slashdot from your mobile device? Point it at m.slashdot.org and keep reading!

 



Forgot your password?
typodupeerror
×

RIAA Forgets to Make Royalty Payments 341

theodp writes "NY Attorney General Eliot Spitzer agreed with the RIAA on one point - artists WERE being deprived of money that was rightfully theirs. But Spitzer managed to find $50 million for performers without shaking down grandmothers. Spitzer's culprits? A Who's Who of the nation's top recording companies - members of the RIAA - who failed to maintain contact with artists and stopped making required royalty payments."
This discussion has been archived. No new comments can be posted.

RIAA Forgets to Make Royalty Payments

Comments Filter:
  • the "harm", huh? (Score:5, Insightful)

    by CoolVibe ( 11466 ) on Thursday May 06, 2004 @09:13AM (#9072469) Journal
    I'd guess the music swappers are just a pinprick. The real hurt in the music industry is the RIAA itself, so it seems.

    Oh well. Good that they caught this. The artist do deserve their money.

  • Re:Motives (Score:5, Insightful)

    by Stephen R Hall ( 163541 ) on Thursday May 06, 2004 @09:16AM (#9072489)
    Better the money in New York State's coffers, where it will be of benefit to the public, than with the record companies, where a relatively small number of shareholders benefit from money that isn't theirs.
  • by hal2814 ( 725639 ) on Thursday May 06, 2004 @09:16AM (#9072495)
    It looks like the RIAA wasn't paying because the artists didn't bother to get their payments from them. I'm sure if David Bowie wanted his money he could have gone to the RIAA and gotten it, but he didn't bother to go to the RIAA to get his money. Maybe the RIAA could have tried a little harder to contact these people, but I know that if the someone owes me money, they're going to be hearing from me until I get it.
  • Common sense (Score:5, Insightful)

    by rdilallo ( 682529 ) on Thursday May 06, 2004 @09:17AM (#9072496)
    I don't understand why the government has not seen the RIAA as an orginization that doesn't adhear to the rules that it's set for everyone else. They have such deep pockets, they can make the effort to locate the artists and pay the royalties. Don't be surprised that this has happened. There's much more to come out of this...
  • by Moryath ( 553296 ) on Thursday May 06, 2004 @09:18AM (#9072503)
    "Standard Industry Practice."

    RIAA members ripping off their artists is nothing new - it's been documented over and over and fucking over again. I'm sure some slashdotters can point to half a dozen articles written by artists who point out that, by the time the RIAA gets done doing the math on a "standard" industry contract, an even moderately sucessful artist winds up OWING a few thousand dollars to the label and is pretty much an indentured servant, because they can't jump labels to find a better deal by the terms of the contract.

    What we REALLY need is for some court ruling to take all those fucking provisions, and declare them illegal. THEN when the RIAA cries about "artists" being deprived of money due to file sharing, I might give a rat's ass about their bullshit argument.
  • by Deanasc ( 201050 ) on Thursday May 06, 2004 @09:18AM (#9072505) Homepage Journal
    I find it completely unconsionable that the RIAA failed to protect the artists rights and make payments when due. Claiming they couldn't find the artists involved is a fabrication of the most fraudulent kind. It's not like David Bowie has fallen off the face of the earth.
  • Re:Motives (Score:1, Insightful)

    by Anonymous Coward on Thursday May 06, 2004 @09:18AM (#9072512)
    These types of things are very common. Your grandfather dies? The state he died in keeps a loose tab on the goings on with what he had goings on. With somethings the companies are actually required to seek out would be heirs I think on the former owners 120th or so birthday.

    Spitzer might well be a bitch. But the music industry isn't being asked anything that isn't already assumed in other industries. They should be ashamed, castrated, and their children sold into slavery/prostitution. They weren't attempting anything other than padding their bottom line. And it's terribly naive to entertain ideas that it was anything different, and the companies involved are anything other than completely and indefensibly in the wrong.
  • Well.. (Score:5, Insightful)

    by patrick.whitlock ( 708318 ) on Thursday May 06, 2004 @09:19AM (#9072514)
    Does this mean that since the RIAA is out 50 mil... (that THEY diddn't think to give to the rightful owner).... the 50 mil will be deducted from the amount of money made through cd sales so they can whine a bit more about file sharing?
  • by Anonymous Coward on Thursday May 06, 2004 @09:19AM (#9072524)
    Except that the artist doesn't always know that they are owed the money. Do you think they keep track of the sales of every one of their songs (both written and recorded)?
  • by hyphun ( 728915 ) on Thursday May 06, 2004 @09:21AM (#9072537)
    I don't understand. If you move, and you know you will get royalties from a record label... Won't YOU tell them your new adress??? I Would!
  • by southpolesammy ( 150094 ) on Thursday May 06, 2004 @09:22AM (#9072547) Journal
    Prominent artists who were owed royalty payments included: David Bowie, Dolly Parton, Harry Belafonte, Liza Minnelli, Dave Matthews, Sean Combs and Gloria Estefan.

    Ummm....how exactly do you lose track of your prominent artists? And for that matter, why aren't the agents of these artists banging down the doors at Sony, BMI, Vivendi, EMI, and so forth to get the royalties? IOW, the agents conveniently forgot to collect? Something doesn't sound right here -- when in the history of business has someone not aggressively pursued their debtors?
  • by mirko ( 198274 ) on Thursday May 06, 2004 @09:23AM (#9072553) Journal
    Some artists do not even know they are subject to reimbursement or royalties from the RIAA, they just happen to sign up with a small company (which is part of)^n [songlyrics.com] an RIAA member...
  • by nuffle ( 540687 ) on Thursday May 06, 2004 @09:24AM (#9072563)
    According to CNN, sales dropped about 7.5% [slashdot.org] from 2002 levels of 32.2 billion to 2003 sales of 32.0 billion. RIAA blames "rampant piracy" for this.

    Therefore, according to RIAA, piracy accounted for 200 million in sales loss. Therefore (unless artists get 25% or more of retail) with this announcement of withholding 50m in royalties from artists, the RIAA itself is personally responsible for more monetary loss to artists than piracy.
  • Agreed to comply? (Score:5, Insightful)

    by Huh? ( 105485 ) on Thursday May 06, 2004 @09:28AM (#9072587)
    The companies have also agreed to comply with New York State's Abandoned Property Law, which requires that if an artist or his or her family cannot be found, unclaimed royalties be "escheated" or turned over to the state.

    I didn't know you had to 'agree' with a law before it was applicable to you. Interesting.

  • by in7ane ( 678796 ) on Thursday May 06, 2004 @09:28AM (#9072591)
    I, well, by RIAA's logic actually, also suggest prison time [riaa.com] - hey, it's only fair, they did benefit financially from this.
  • by Anonymous Coward on Thursday May 06, 2004 @09:28AM (#9072592)
    Have any of you ever paid a bill slightly (or even very) late? Ever take out a loan, with which you intended to enrich yourself, and then take longer to pay it back than you originally contracted?

    If yes, do you then have the right to criticize the RIAA?

    The fact is, RIAA's actions, though despicable, are ultimately irrelevant to whether or not it is morally acceptable, and/or should be legally acceptable, to copy and distribute someone else's work without authorization, contract or payment arrangement. The fact that RIAA members were lax paying artists does not give anyone a free pass, morally or legally, to download music illicitly. It does not make the claim that artists are being ripped off by illegal music downloaders any more or less debatable.

    This is not an issue appropriate for posting to slashdot IMO. When the story deals with whether downloads are/should be acceptable, it's a tech story. When the story is about an RIAA conflict with artists, and the sole reason for posting it is to wag the finger of shame at RIAA for being hypocrites (ostensibly), that's just pandering and incitement.
  • by Anonymous Coward on Thursday May 06, 2004 @09:28AM (#9072594)
    "SOLLY CHOLLY!"
  • Re:Hmm... (Score:5, Insightful)

    by pubjames ( 468013 ) on Thursday May 06, 2004 @09:31AM (#9072614)
    The RIAA is going out of there way to correct a royalty problem that may/may not have entirely been their fault.

    The RIAA was collecting money on behalf of the artists. If they kept it without making much effort to track down the rightful owners, then that's theft as far as I'm concerned. Especially if they insist on calling 12yr old children thieves for swapping mp3s.
  • by Tirs ( 195467 ) on Thursday May 06, 2004 @09:35AM (#9072652) Homepage
    >Have any of you ever paid a bill slightly (or even very) late? Ever take out a loan, with which you intended to enrich yourself, and then take longer to pay it back than you originally contracted?

    Never. Even when I had to sell personal property to avoid it, I made a point of honoring my debts on the appointed date. And I am not a fat-rich-corp-guy like the RIAA. In other words: even if I had answered "yes", probably it would have been "because I couldn't, since didn't have the money". Do you think the RIAA does not have the money or cannot pay to the artists?

    So I am rightfully angry against these robbers.

    And yes, it is an issue appropiate for /. because the ultimate subject in the war between RIAA and the rest of the non-corporate world is... di-gi-tal rights. "Digital" as in "geek".
  • by Neph ( 5010 ) on Thursday May 06, 2004 @09:36AM (#9072660) Homepage
    According to CNN, sales dropped about 7.5% from 2002 levels of 32.2 billion to 2003 sales of 32.0 billion

    Forgive the offtopiccage, but wtf? That's 0.6% not 7.5%. Those are the figures quoted in the article, too, no typos. No wonder these clowns managed to lose $50M with those kinds of math skills...

  • The RIAA being a filthy bunch of liars is one thing (in that they continuously ignorethe real statistics in regards to file sharing and CD sales), but it's even worse that they knowingly shame others into doing what they want under the guise of some righteous premise that they themselves are violating to a much greater extent. Ripping off the artists that they're suing everyone else on the behalf of - sickening really.

    Kind of reminds of me of some bigger (cough - Catholic Church) examples (cough - US war effort).

    I'm sure that last bit will get me slammed. There goes my karma =D

  • by Anonymous Coward on Thursday May 06, 2004 @09:42AM (#9072697)
    I must point out that it is only individual members of the RIAA, not the RIAA itself, that are responsible for failing to pass on the royalties, and this in no way reflects RIAA policies. It simply shows poor or irresponsible book keeping on the part of the companies involved.

    To pre-empt any ad-hominem replies: I do not like the RIAA's tactics & I was once signed to one of the companies mentioned (BMG). But claiming this is an RIAA act is entirely incorrect, self gratifying FUD, and as we all know, spouting crap in lieu of facts does not make a convincing case. If you want to criticize a system, learn how the system works first.
  • Hilarious! (Score:4, Insightful)

    by beforewisdom ( 729725 ) on Thursday May 06, 2004 @09:45AM (#9072722)
    With all of the noxious public actions they have taken it turns out the RIAA is the biggest music music theif of them all.
  • Re:Motives (Score:5, Insightful)

    by UconnGuy ( 562899 ) on Thursday May 06, 2004 @09:54AM (#9072808)
    I think that goes to show that if a canditate has a good record and doesn't show partisanship, then he/she can be popular across the board. Here, you have the AG, who shouldn't be partisan in his position, working for the people, and with the approval ratings, it shows the public appreciates it. I really thinks it comes down to, he was doing his job (fighting for the citizens of NY) and he was successful in what he was elected to do.
  • Re:Motives (Score:3, Insightful)

    by JordanH ( 75307 ) on Thursday May 06, 2004 @09:57AM (#9072840) Homepage Journal
    • While this will be great for a lot of artists I question the motive. I doubt that Eliot Spitzer is doing this for artists. I'm sure New York state will benefit from the interest revenue from "hold[ing] these monies. It won't hurt his career to have his name in the paper either.
    You know, he does work for the state of NY, after all.

    In any case, these royalties should benefit either the copyright holder or, failing that, the state and not these distribution companies. So, this is a good thing.

    The people grant all copyrights for the advancement of art. Clearly, the RIAA members have shown contempt for advancement of anything except their own profits. We have to make sure they don't benefit from their "inability" to find the artist.

  • by hal2814 ( 725639 ) on Thursday May 06, 2004 @09:59AM (#9072866)
    Then where is David Bowie? If you wanted to pay Bowie for some service he performed, how would you go about doing it? Remember, the RIAA can't just pick one of Bowie's addresses and hope that he gets his check.

    Also, I doubt you can let your fingers do the walking and find him in the phone book. To find these artists, the RIAA will have to figure out who the artist's agent, attorneys, and/or accountants are and contact them. This might not always be easy to do and might be time consuming per artist. The RIAA still needs to follow up on this better, but finding Bowie or Estefan for payment purposes might actually be harder than finding a nobody or a hasbeen.
  • by Anonymous Coward on Thursday May 06, 2004 @09:59AM (#9072868)
    Morals do matter.

    You can't make a claim about filesharing on moral grounds if your own morals are suspect.

    If you're a crook, its hard to take cries of "thief" very seriously.
  • Re:Motives (Score:3, Insightful)

    by Anonymous Coward on Thursday May 06, 2004 @10:01AM (#9072881)
    What I don't get is the idiotic RIAA bashing in the article head.

    It is cleverly disguised, but it is there. In saying the *RIAA* is at fault, that is like saying that all software developers abuse their power simply because Microsoft does. The RIAA is not the music industry. It is an association of music industry corporations. It doesn't run the companies nor does it collect the fees. It helps make certain that the fees can be collected in some instances where their stakeholders feel they need to do so, but they don't collect the fees.

    Every artist has a publisher. His or her publisher is responsible for making certain that all royalties are collected. It is the artists responsibility to make certain that the publisher knows where you live so that you can get paid. Its not too hard. In the US there are 3 main publishing agencies -- Harry Fox, ASCAP and I believe BMI (err..I think one of those is affiliated with the other these days). I get my measly check every so often from these guys -- and they even took care of doing a search for overseas owed money when a friends song was on a foreign soundtrack (somehow I was listed on it even though I only helped with minor structural changes -- sometimes friends don't screw ya over :-)

    The point is, if someone isn't getting paid -- its there fault.
  • by Anonymous Coward on Thursday May 06, 2004 @10:22AM (#9073034)
    Time to flush the toliet on the middlemen. Boycott industry music, and roll your own crap. All this talk about the important role of the middle men in choosing good music, and what do we get? Good Charlotte, Britney Spears, Sean Puffy PDiddy Combs? Give me a garage band anyday!
  • Re:Motives (Score:3, Insightful)

    by dubl-u ( 51156 ) * <2523987012&pota,to> on Thursday May 06, 2004 @10:36AM (#9073193)
    Capitalist bastards.

    Well, to be fair, I think they're more accurately oligarchic bastards. They really don't seem to get the whole market economics thing.
  • by Anonymous Coward on Thursday May 06, 2004 @10:36AM (#9073195)
    Don't forget the Master of Puppet's themselves, Meatallica! They were granted a big boost by the industry for just saying no to fans! They have always sucked IMHO anyway!
  • Re:Motives (Score:2, Insightful)

    by Anonymous Coward on Thursday May 06, 2004 @10:39AM (#9073216)
    Amazing. A politician helping his political career by helping his constituents. What the hell is the world coming to???
  • by dubl-u ( 51156 ) * <2523987012&pota,to> on Thursday May 06, 2004 @10:53AM (#9073378)
    If you wanted to pay Bowie for some service he performed, how would you go about doing it?

    If I worked for the Recording Industry Association of America? Then gosh, I would call up the record companies that are members and funders of my organization and say, "Hi, Vigin? It's Bob at RIAA. I need to get ahold of David Bowie. Yeah, he's under B. Sure, I'll wait."

    I'm guessing that since they do millions of dollars worth of business with him, they'll have some idea of how to get ahold of him.

    This might not always be easy to do and might be time consuming per artist.

    Did you note the part about $50 million? If they put that in a regular bank account, they can get $1m per year in interest. So it's not like they couldn't find the funds to hire a clerk to look into this. Their, "Gosh, honey, look at this $50 million I found under the couch cusions," line is not particularly plausible.
  • by carlmacd ( 773459 ) on Thursday May 06, 2004 @11:08AM (#9073561) Homepage
    Okay, I'm going to comment on this whole "why weren't the artists trying to collect their money?" thing...and why they may not have realized they weren't getting paid. Not every artist waits by the mailbox for their royalty check like a kid at Christmastime. Hell, I wouldn't doubt that many labels have some sort of direct deposit system set up to save on postage. Now imagine you are Sean "Puffy" Combs. You have millions of dollars. Not only that, but a majority of your income is NOT from royalties...in fact, I'm betting royalties aren't even a significant portion of his income. He makes money for producing other groups, off his own record label, of promotions (such as Xbox Live), and off a million other things. Is it unreasonable to think that maybe he simply hadn't noticed that the deposits for royalties weren't there anymore? For further perspective, I have a very rich in-law. He doesn't balance his checkbook. He knows the money is in there, he knows the check he's writing will not bounce, and he pretty much take's his bank's word for it when the statement comes. He looks over it, of course...but not as closely as those of us who face the actual possibility of running out of money do. He's not anywhere as wealthy as Puffy.
  • Re:Motives (Score:5, Insightful)

    by grrliegeek ( 592264 ) on Thursday May 06, 2004 @11:16AM (#9073649) Journal
    What I don't get is your reasoning. The RIAA is at fault because by contract they were required to pay royalties. Again I quote "Spitzer's culprits? A Who's Who of the nation's top recording companies - members of the RIAA - who failed to maintain contact with artists and stopped making required royalty payments." If you have a problem with people associating the RIAA with all those record companies, you should remember that while prosecuting pre-teens and grannies, the RIAA has constantly reminded us that they are the representative of all those record companies and artists. You can't have it both ways. Either they are the representative of all those record companies and OK to prosecute people for alleged violations of the law, and it's OK to say they are to blame for this lack of payment to artists *or* they are not really responsible, you're right, we should lay off the, *and* they have no right to sue anyone. Which is it? You say the recording artists are at fault for the record company not paying them their royalties due. I'm sure then you'd be perfectly OK blaming yourself if your employer suddenly stopped giving you paychecks.
  • by Lochin Rabbar ( 577821 ) on Thursday May 06, 2004 @11:16AM (#9073656)

    Did you read the list of some of the artists they lost contact details for, they included long forgotten one hit wonders like "David Bowie, Dolly Parton, Harry Belafonte, Liza Minnelli, Dave Matthews, Sean Combs and Gloria Estefan". Now if you believe they couldn't contact these people then you'll believe anything. It's just a typical out of court where the guilty party pays up and in return get to deny all blame i.e. the RIAA are good guys stuff in document is only for the consumption of the legal system and fools.

  • by teamhasnoi ( 554944 ) <teamhasnoi AT yahoo DOT com> on Thursday May 06, 2004 @11:44AM (#9074039) Journal
    It seems to me (without seeing the whole list of artists) that although the RIAA has no excuse for being unable to 'find' the artists listed, the artists listed are consistent performers and no doubt have some leverage to get better terms in their contracts.

    I submit that Dolly has far better terms than some relatively unknown/new/crap band, and probably does rather well with mechanical royalties, and other royalties than the unknown/new/crap band.

    IOW, Dolly is most likely making money in areas that an unknown/new/crap band would not, such as printed sheet music, covers by other artists, film and television, and public performance (musak, etc.).

    That said, it's not surprising that the whore-tards in the RIAA wanted to 'misplace' those extra dollars; what is surprising is that the missing artists' lawyers weren't all over those nickels and dimes in the first place - especially Dolly's lawyers. She likes the money.

    Even more reason to bypass the RIAA. What you lose in enforcement (public performances, radio play) and marketing, you gain in knowing that you are getting the best deal as an artist.

  • Of course (Score:4, Insightful)

    by rixstep ( 611236 ) on Thursday May 06, 2004 @01:16PM (#9075133) Homepage
    I'm glad someone found this story and pointed this out. All along we've considered the 'Napster issue' from an impartial POV when yes, DUH, everyone knows what crooks these recording company execs are, everyone knows at least half a dozen horror stories about how songwriters and performers are getting ripped off all the time. Music is supposed to be nice, and beneficial, and soul-soothing - it's a wonder and a mystery why these lowlifes get into the business in the first place.

    Both David Lindley and Courtney Love have spoken out eloquently against them in the past. I think we should remember who the real villains are here - and that they're not 13yos with a few songs on a hard drive.
  • From the AC (Score:1, Insightful)

    by Anonymous Coward on Thursday May 06, 2004 @07:07PM (#9078531)
    "So, downloaders are "stealing" the product of an individual member, not the RIAA itself, and therefore the RIAA should not be involved in the lawsuit process against said individual?"

    That's a deliberate misinterpretation of what I said. In fact, the members of the RIAA have delegated responsibility for protecting copyright to the RIAA. So although it looks like the RIAA should be sending out threatening letters to it's own members it wouldn't do so, since this is technically breach of contract rather than copyright infringement. But any astute observer will notice that copyright infringement cases between RIAA members (and their clients) have never, not once, involved the RIAA directly; it is always company against company or company against artist. Settling intra-industry or contractual disputes is not the RIAA's role.

    "Yes, the individual member should have monitored its own bookkeeping and made sure the artists were paid, but isn't the RIAA the representatives of these members, and thus should be looking WITHIN as well as WITHOUT for instances of wrong occurring?"

    Not really, since the RIAA is working according to the requests of it's members. Again, ensuring a record company is obeying it's contractual obligations is not the RIAA's job. So, yes, blaming the RIAA really is entirely incorrect, since it overlooks the fact that the record companies do own the copyright to those recordings, and so are not violating copyright at all.

    "Is this a one-way street, that they cannot even monitor their own members?"

    Yes, it is a one-way street. You don't bite the hand that feeds you, the RIAA is fed by the mainstream industry. I would be very interested to hear an example of any industry advocacy body prosecuting it's own members; I can't think of one, if you can provide an example I would be delighted to hear it.

    "...this "system" is extremely complex, and the only ones to truely "know" it are the ones that created it."

    First, the system was not suddenly "created", it evolved over the best part of a century, infuenced by technology and laws, so there was no guiding hand responsible (such an idea is laughably naive). Second, any system is as complex or as simple as the level of detail you choose to examine, you don't need to know anything about copyright to read the RIAA's mission statement. Third, understanding the difference between the legal entity that is the RIAA, and the legal entities that are the individual companies is not that difficult to anyone of reasonable intelligence. But of course you are right: ignorant opinion is so much more valid an arguement than fact.

    My point still stands: the RIAA is not responsible, it is the fault of the individual companies. The headline of the article is misleading, and should read "RIAA Members Forget to Make Royalty Payments". But that doesn't give us the scope for righteous indignation, does it?

The optimum committee has no members. -- Norman Augustine

Working...