Report: AFM Sues Labels Over Streaming Revenue Paid To Pension Plan
August 10, 2015 at 4:11 PM (PT)
The AMERICAN FEDERATION OF MUSICIANS’ pension fund has filed suit against five record companies, claiming that they failed to make pension contributions on revenues from certain digital transmissions of their music catalogs, according to a report in DEADLINE.COM. The suit can be read here.
Defendants in the suit, filed today in federal court in NEW YORK include ATLANTIC RECORDS, WARNER BROS. RECORDS, HOLLYWOOD RECORDS, UNIVERSAL MUSIC GROUP and SONY MUSIC ENTERTAINMENT.
The suit claims that the companies failed to make pension fund payments from foreign audio streaming revenues and money garnered from foreign and domestic ringtones, a discovery made by independent auditors last year. Attempts to settle out of court recently broke off.
“The record companies should stop playing games about their streaming revenue and pay musicians and their pension fund every dime that is owed,” said AFM President RAY HAIR. “Fairness and transparency are severely lacking in this business. We are changing that.”
This is the fifth the union has filed against major media companies for contract violations in the past few months.