Labels sued for irregularities in artists retirement accounts
Posted by Dan Bell on 24 May 2004 - 00:26 - Source: USA Today
Not a day goes by, where we don't hear the RIAA give their song and dance about how avoiding the purchase of copyrighted products, basically takes the food out of artists mouths due to lack of royalty payments. Now, we can read that even when we do succumb to a retail purchase, the labels murky accounting practices appear to be denying these artists of their due anyway.
In this particular case, it seems that Sam Moore, a 30 year veteran of show business has had his pension short funded for 27 years by Atlantic Records. In fact, the Moore's claim that from 1965 to 1992 not one penny of royalties went toward their account.
According to Mr. Moore's manager and wife, Joyce Moore, 60's hits such as Soul Man and Hold on! I'm Comin', sold millions of copies for this talented R&B performer and Atlantic Records. By her calculations, the Moore's are due a retirement check, per month of nearly $ 8,000 dollars. Unfortunately, according to this story at USA Today, the couple were informed that he would be receiving a monthly check of $ 63.67 instead. This must not be an isolated incident, because other R&B vets are filing similar lawsuits against Sony, Universal, BMG, Warner and EMI for failing to accurately report royalties or make required contributions to the American Federation of Television and Radio Artists' Health and Retirement Funds.
The issue comes down to one word: transparency," says Fred Wilhelms, a Nashville-based lawyer who represents artists on royalty and benefit matters. "The royalty accounting system is cloaked in obscurity. The labels pay royalties based on sales but are the only ones with actual sales data. What gets reported is up to them, and there's no way to easily verify the numbers."
Royalties vary according to label custom, the clout of each artist and negotiating skills of lawyers involved. Among murky issues:
• Rates on CDs are usually 85% of cassette/vinyl rates, an outdated practice set when CDs were expensive to produce.
• Sizable deductions from royalties are taken for recording, video and tour costs.
• Reductions for vaguely defined costs of radio promotion can reach $ 500,000 per track.
Artists receive quarterly statements with computations Da Vinci would have trouble decoding.
"There's an indifference to getting things right, and 95% of the errors I see in royalty statements break in favor of the label," Wilhelms says. "That confounds the laws of probability."
Apparently, Atlantic felt they had carte blanche with Mr. Moores earnings and figured he would keep his mouth shut. The record industry has already done considerable damage to themselves in the eyes the buying public with price fixing and harsh lawsuits. Now, they are about to turn their own talent against them with these alleged shady accounting practices.
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It's nice to knwo that they're ******* the artists too. At least we're not the only ones.
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I've said for a long time the original Napster and P2P services were quietly created by artists and released on the general public to get even with the Record Labels.
The RIAA's bookkeeping practices would make Enron look proud. If those artists can get their bookkeeping records into court as evidence, well, they'll be hard-pressed to charge anything more than $6-7 for a CD anymore. -
Originally Posted by teegee420
Buddha says that, while he may show you the way, only you can truly save yourself, proving once and for all that he's a lazy, fat bastard. -
Yep, everyone likes to bone everyone else:
May 20, 2004
Dirty Rotten Scoundrels
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OMG! WTF! It looks like John Albert Malm, Jr., who apparently had befriended Trent Reznor and managed his career under the pretense of not totally reaming him in the ass and taking millions of his dollars, has totally reamed Trent in the ass and taken millions of his dollars. What a swell guy! Of course, a generous helping of delicious irony will inevitably be served to Mr. Malm by a group of sexually frustrated prison inmates who just happen to be NIN fans.
I've mentioned that I have really good connections, right? I'm pretty sure I have. Anyway, thanks to these really good connections, I've managed to intercept many of Trent's emails over the years. Sure, that may be considered "a blatantly illegal invasion of privacy" in some circles, but to me it's just something fun to read while I'm on the toilet. Well, it turns out that there's actually been quite a few hints here and there that Mr. Malm has been up to no good. I didn't really pick up on it at the time, and neither did Trent obviously, but looking back on them now, the signs are pretty hard to miss. Let's take a look-see:
From: "Trent Reznor" [xxxxx@xxxxxxxxx]
To: "John Malm" [xxxxx@xxxxxxxxx]
Subject: Something strange...
Date: Wed, 27 Mar 1996 13:44:39 -0500
Hey John,
I was just checking the books and it looks like there are some discrepancies. I think someone in accounting might be trying to rip us off. Get back to me whenever you get this.
TR
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From: "John Malm" [xxxxx@xxxxxxxxx]
To: "Trent Reznor" [xxxxx@xxxxxxxxx]
Subject: Re: Something strange...
Date: Sat, 13 Apr 1996 02:26:12 -0500
Sorry I didn't get back to you for so long, I was in the Bahamas for a couple weeks. I bet it's that new guy, Carl. I had a feeling about him, I don't even know why I hired him. I'll have a talk with him first thing Monday. By the way, could you stop by my office sometime next week? I need you to sign a few things.
-John
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From: "Trent Reznor" [xxxxx@xxxxxxxxx]
To: "John Malm" [xxxxx@xxxxxxxxx]
Subject: $5000 bathrobe??
Date: Mon, 7 Oct 1996 10:58:03 -0500
I was just looking over the company's monthy expenditures... what's this about a $5000 bathrobe?
TR
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From: "John Malm" [xxxxx@xxxxxxxxx]
To: "Trent Reznor" [xxxxx@xxxxxxxxx]
Subject: Re: $5000 bathrobe??
Date: Wed, 9 Oct 1996 04:30:14 -0500
I have a very severe allergy to all fabrics except for a rare type of wool from a breed of sheep that lives deep in the mountains of Peru. That red robe you got me for my birthday was made of cotton and I almost died. Don't worry, I'll pay it back later! By the way, could you stop by my office later this week? I need you to sign a couple things.
-John
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From: "Trent Reznor" [xxxxx@xxxxxxxxx]
To: "John Malm" [xxxxx@xxxxxxxxx]
Subject: Re: $5000 bathrobe??
Date: Wed, 9 Oct 1996 09:51:22 -0500
Oh, ok. Since you're my close trusted friend, I believe you. Hey, do you still have the red bathrobe? My dog destroyed mine and I could use a new one.
TR
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From: "Trent Reznor" [xxxxx@xxxxxxxxx]
To: "John Malm" [xxxxx@xxxxxxxxx]
Subject: An idea...
Date: Tue, 30 Dec 1997 15:45:00 -0500
Hey John,
I was just thinking, maybe you could start letting me cash my own checks, instead of you cashing them for me and then giving me the money and insisting that that's all there was.
TR
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From: "John Malm" [xxxxx@xxxxxxxxx]
To: "Trent Reznor" [xxxxx@xxxxxxxxx]
Subject: Re: An idea...
Date: Thu, 1 Jan 1998 01:18:48 -0500
WHAT, YUO DONT' TRUST ME NOW??? IM JUST LOOKNIG OUT FOR YUO , BUDDY!! WERE TIGHT MAN! I WOUND NEVER FUCKIN RUP U OFF MAN!! UI PAID FOR THESE HOOEKERS MYSELF! DAMN IGM DRUNK
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From: "John Malm" [xxxxx@xxxxxxxxx]
To: "Trent Reznor" [xxxxx@xxxxxxxxx]
Subject: Re: An idea...
Date: Thu, 1 Jan 1998 16:31:04 -0500
Sorry Trent, I was pretty drunk last night. But I really think it's better if I cash your checks for you, you know, for tax purposes. Besides, what are you worried about? $80 a month is a hell of a royalty. You know Eddie Vedder only gets $40? You should just be glad I'm such a kickass manager!
-John
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From: "Trent Reznor" [xxxxx@xxxxxxxxx]
To: "John Malm" [xxxxx@xxxxxxxxx]
Subject: My car
Date: Wed, 13 May 1998 12:16:57 -0500
John,
For some reason my car was almost on empty last night, and there were empty beer cans and a used condom on the floor. Also, "MALM IS THE PUSSY KING" was spraypainted on the side. Do you know anything about that?
TR
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From: "John Malm" [xxxxx@xxxxxxxxx]
To: "Trent Reznor" [xxxxx@xxxxxxxxx]
Subject: Re: My car
Date: Thu, 14 May 1998 02:11:48 -0500
HAY I WASNT IN UR GAR LAST NITE U MUSTT HAVE A GAS LEAK U FAG!!!!1 HAY COME BY MY OFFIACE TOMOWRW I NEED U TO SIGNG ANOTHER SHITTEY CONTARCT
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From: "John Malm" [xxxxx@xxxxxxxxx]
To: "Trent Reznor" [xxxxx@xxxxxxxxx]
Subject: Re: My car
Date: Thu, 14 May 1998 13:08:45 -0500
Hi Trent,
Sorry, I was pretty drunk last night. I honestly don't know about your car. Maybe Richard Patrick stole it. He always seemed pretty crooked and dishonest to me. Oh, but seriously stop by my office when you get a chance.
-John
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From: "Trent Reznor" [xxxxx@xxxxxxxxx]
To: "John Malm" [xxxxx@xxxxxxxxx]
Subject: Hey John...
Date: Fri, 2 Apr 1999 19:33:09 -0500
Hi John,
I was going to go see that new movie The Matrix tonight, but when I went to the ATM it said I had insufficient funds in my bank account. What's up with that?
TR
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From: "John Malm" [xxxxx@xxxxxxxxx]
To: "Trent Reznor" [xxxxx@xxxxxxxxx]
Subject: Re: Hey John...
Date: Sat, 3 Apr 1999 13:26:40 -0500
You're obviously spending too much money! How many times do I need to tell you that the store brand stuff is just as good as the name brands? And didn't you just go to the movies last weekend? You need to quit throwing your money around like that, especially since you still have to pay to get your car fixed. Anyway, gotta go, time for my oil massage.
-John
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From: "Trent Reznor" [xxxxx@xxxxxxxxx]
To: "John Malm" [xxxxx@xxxxxxxxx]
Subject: $$$
Date: Mon, 11 Oct 1999 11:01:34 -0500
Hey John,
You said The Fragile went gold, right? Shouldn't I be getting some money at some point? I miss having cable TV.
TR
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From: "John Malm" [xxxxx@xxxxxxxxx]
To: "Trent Reznor" [xxxxx@xxxxxxxxx]
Subject: Re: $$$
Date: Wed, 13 Oct 1999 03:15:58 -0500
Last time I was there I was able to pick up 5 channels by extending the rabbit ears all the way out at a 45 degree angle. Why do you need more than 5 channels, Mr. Picky?
Anyway, about the money... I told you from the beginning that record labels are greedy fuckers. Let me break it down for you:
$10,000 - Advance from Interscope (really, that's all there was)
-$5,000 - Publishing costs
-$3,000 - Manager's fee
-$1,000 - Cost of living
-$500 - Truck rental
-$450 - Electricity
-$25 - Lunch
-$20 - Shoes
-$5 - Artist's cut
Sorry, I had to spend your $5 on chicken. Hey, it's a tough business. At least you're famous! By the way, could you stop by my office sometime this week?
-John
It's pretty sad, really, that someone who was considered such a good friend could actually be a total assbag. It seems like everybody Trent makes friends with ends up stabbing him repeatedly in the back with a rusty butter knife.
Takne from the meathead perspective http://www.theninhotline.net/meatpers/current.html
a generous helping of delicious irony will inevitably be served to Mr. Malm by a group of sexually frustrated prison inmates who just happen to be NIN fans -
Originally Posted by VCDHunter
Hilary Duff
Madonna
Britney Spears
Clay Aiken
Rod Stewart
Axl Rose
Justin Timberlake
Garth Brooks
Eminem
That's it for now...more later perhaps. -
Originally Posted by teegee420
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Originally Posted by teegee420
Buddha says that, while he may show you the way, only you can truly save yourself, proving once and for all that he's a lazy, fat bastard. -
I just don't know what you see in her, Pac. I'm sure you'd like to see yourself...
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Originally Posted by teegee420
Jennifer Lopez (she is supposedly a singer)
Cheryl Crow
Christine Aguilera
Alanis Morrisette
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I hate J. Lo with a passion, but I'd tap that ass in a heartbeat.
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Originally Posted by Capmaster
Buddha says that, while he may show you the way, only you can truly save yourself, proving once and for all that he's a lazy, fat bastard. -
Originally Posted by VCDHunter
She just blows as a singer. But I'll bet she can play a mean tune on the bone-o-phone
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OK, so I have a question with all this RIAA mumbo jumbo...to be honest I don't really download music unless it's really old stuff that I can't find in a store. I don't listen to music very often anyway...it's too difficult to hear over all the voices in my head.
My question is:
Since I can take a CD I own and can load it into a MP3 player. Can I legally download a song if I have the original CD and am just too lazy to rip and convert it? -
Originally Posted by northcat_8
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People usually get sued for sharing music, not downloading it.
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So let me get this straight...I can download all the songs I want and if I get caught, I can either go buy or borrow all the original CDs from friends and I can say "**** off you" to the RIAA?
It just seems to me that there is no way they can control this and even attempting to regulate it is one of the most retarded decisions ever. Just like anything else, the quickest way to sell something or make people do something is to create a controversy over it. Last time I checked Prohabition didn't work. -
Originally Posted by teegee420
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the problem really comes when that machine with 500+ songs on is uploading to other users 24/7.
come live in the UK! we have the BBFC (they classify films. that's it) and the BPI (that's the British Phonographic Industry doncher know old chap?)
And neither have power to do anything. i won't rule out some FBI agent abducting me in the night and hanging me outside jack valentis' house -
Originally Posted by flaninacupboard
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Originally Posted by teegee420
I actually know a girl that looks exactly like her but is a few years older (18/19, not exacty sure). It's freakish how similar they are, I'll post a pic if I can get one.
She's coming over to a party at my house in a few weeks so if my drunken attempts work you might see a bogus "Hilary Duff" sex tape on the net. -
Originally Posted by flaninacupboard
What amazes me about the whole thing, is that it's not going to stop anything. It's just going to force a more creative and more intelligent means. -
oh totally! napster got hosed, morpheus replaced it right away. we went from a slightly dodgy p2p music system (i.e. it only came from one user, you couldn't pause a transfer and if the user logged off you had to start again. useless for anyone on a modem as anything bigger than 20megs was undownloadable.) to a reliable multi user (this also meant FAST for those of us at schools and unis!) multi format (enter Divx) resumable download network. now of course they're working to hose kazaa and morpheus and gnutella. next stage is encrypted user identified scary-fast systems.
i would feel sorry for them if they behaved a little better. i.e. all that money should have subsidised my local cinema, i have to go ~20 miles to one now. and why are there so many titles that have had crap/no european DVD release? and then they have the nerve to tell me i'm not allowed to watch R1 dvd's. so i get a multiregion player. but that's still not good enough, i need a RCE MR DVD player. but that's STILL not good enough, that T2 hi def DVD will only work over there.
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