Settlement Between Labels, SiriusXM Over Pre-1972 Royalties Challenged By The Turtles
July 10, 2015 at 3:57 AM (PT)
The settlement between the record industry and SIRIUSXM in the labels' suit for the satellite radio company's use of recordings created before 1972 is being challenged in court by THE TURTLES -- MARK VOLMAN and HOWARD KAYLAN, a/k/a FLO AND EDDIE -- who have filed a motion for an injunction to stop the settlement.
In the settlement, SIRIUSXM will pay $210 million to plaintiffs ABKCO MUSIC & RECORDS, CAPITOL RECORDS, SONY MUSIC ENTERTAINMENT, UNIVERSAL MUSIC GROUP and WARNER MUSIC GROUP for its use of recordings from before 1972.
But a declaration by attorney HENRY GRADSTEIN notes that the labels and FLO AND EDDIE entered a Common Interest Agreement with the labels to share discovery, work product, and strategy, yet the labels did nor advise him that they scheduled a mediation separate from his clients. When he found out, he tried to join the mediation but SIRIUSXM refused, according to the declaration. And when he and HARVEY GELLER (of counsel to GRADSTEIN AND MARZANO, P.C.) had dinner with the label attorney PETER OSTROFF joked that "they are not going to leave much" for the artists in the settlement, adding that the labels claimed to own 80.2% of the pre-1972 plays on SIRIUSXM during the damage period. But GRADSTEIN writes that the labels and SIRIUSXM froze them out and have yet to provide him with a copy of the settlement.
GRADSTEIN added that he settlement payment date of JULY 15th has been extended to JULY 31st, according to one of the label attorneys.