EMI Music North America Settles With Spitzer For $3.75 Million
June 15, 2006 at 10:44 AM (PT)
NEW YORK State Attorney General ELIOT SPITZER today announced a settlement with EMI MUSIC NORTH AMERICA. to end its "pay-for-play" practices. The agreement covers VIRGIN RECORDS AMERICA, CAPITOL RECORDS, EMI CHRISTIAN MUSIC GROUP and S CURVE RECORDS. It's the fourth label group settlement for SPITZER.
As part of the agreemet, EMI will make a $3.75 million payment, which will be distributed through the ROCKEFELLER PHILANTHROPY ADVISORS, to NEW YORK STATE not-for-profit entities to fund music education and appreciation programs.
"When a record label engages in an elaborate scheme to purchase air time for its artists, it violates state and federal law and presents consumers with a skewed picture of the country’s proclaimed ‘best’ and ‘most popular’ music," SPITZER said. "We’re pleased that our investigation of payola in the music industry has resulted in significant business practice reforms that will help generate more diverse airplay."
SPITZER's investigation into pay for play continues with a lawsuit against ENTERCOM still pending, (NET NEWS 5/8). ENTERCOM has previously announced it intends to fight SPITZER's suit, maintaining that it broke no laws (NET NEWS 5/13). And, there are many in the legal community who think SPITZER has overstepped his authority on the matter (NET NEWS 5/10) of ENTERCOM, and payola in general.
To read SPITZER's entire press release, click here.
To read the terms of the EMI settlement, click here.
To read the exhibits used in the case, click here.