$50 million in royalties due to thousands of artists the labels have "lost track of":
- David Bowie may not need the extra money, and Elvis Presley will not be able to spend his windfall. But under an agreement announced yesterday by New York Attorney General Eliot Spitzer, record companies will be sending out checks for outstanding royalties owed to them and thousands of other artists.
Mr. Spitzer said that the settlement, which amounted to nearly $50 million, was the result of a two-year investigation that found the world's largest recording companies had failed to maintain contact with many artists and writers and had stopped making required payments to them.
In an interview after a news conference that was filled with television cameras, Mr. Spitzer said that "an array of explanations" were offered by the record companies, "like `we didn't really pay close attention,' " and none were "persuasive legally."
Already $25 million has been paid out since his office began its investigation, Mr. Spitzer said.
Among the more prominent artists due money are Mr. Bowie, owed $10,698, and Dolly Parton, owed $17,568. Willie Nelson is owned $2,325, Tom Jones $16,399 and Public Enemy $22,766. "It's not like it's hard to find them," Mr. Spitzer said. "You could go to a concert and throw the check at them onstage." [NY Times]
- When told that she would receive $3,079, Marian McPartland, an 86-year-old jazz pianist who is the host of "Piano Jazz" on National Public Radio, expressed surprise: "It's always nice to get money without doing anything, but I guess many years ago I did do something."
Under the agreement, Warner Music Group, Bertelsmann Music Group, Sony Music Entertainment and EMI Group must list the names of artists and writers who are owed royalties on their Web sites; place advertisements in leading music-industry trade publications explaining procedures for applying for unclaimed royalties; work with music-industry groups and unions to find artists who are owed royalties; and share artist contact information with one another.
Article comments
1 - Jim Carruthers
I tell ya, I can't find Dolly Parton anywhere!
Hey dude, just look over there!
What, those hills?
yah, dude, that's where the royalties go''
There's no way there's royalties in them there hills.
2 - TDavid
Didn't Willy Nelson have some tax trouble? I would have thought the IRS could track down those royalties ...
3 - Jim Carruthers
If the majors even give the IRS a peek at their books, unaccounted royalties will be the least of their problems (what, you think any of them have paid any taxes in the last 50 years?).
4 - TDavid
I think you misunderstood, Jim. What I meant was if Willy Nelson had been in tax trouble they can put liens on assets and unclaimed royalties are indeed assets, not liabilities to the artists :)
If Willy had been audited when he was having tax trouble (and I'm sure he was audited if he was in trouble) then I'm surprised that this wasn't one of the areas he was audited in when the IRS looked for money to attach / encumber. At that time this should have come out that he had money due him. Accountants and auditors are odd that way.
As for the question about if the artists, where required, are paying taxes? Obviously you aren't being serious.
5 - Jim Carruthers
Well, somewhat serious, since most major record companies treat their artists as contract "work for hire" liable for all their own taxes, whereas the companies themselves pay no taxes.
That's what got Willy in trouble. He thought the label was taking care of the taxes, whereas the label knew Willy would get screwed.
Pretty well every act signed to a major label contract gets screwed on taxes because they are considered "work for hire". So they get screwed two ways, they don't own what they create, and they own taxes on it.