Artists to music labels: Where's our Napster money?

So what happened to all the settlement money that Napster and Kazaa were forced to pay the record labels?

That's the question some music artists are asking, according to a story that appeared Wednesday in The New York Post.

The Post quoted two talent managers who said that artists have yet to see their cut of the Napster-Kazaa settlements. This isn't pocket change we're talking here. Napster paid $270 million to settle its copyright infringement case and . Some on the talent side suspect the top four record companies of foot dragging or playing "hide and seek" with the cash.

If nothing else, the controversy illuminates the degree of distrust that exists between artists and the labels. As CD sales continue to shrink, look for more squabbling between them.

"The labels are always going to try to hide the money or use some self-serving formula when they finally get around to paying the artists."

--Jay Rosenthal, counsel for Recording Artists Coalition

But for its part, Warner Music Group says it isn't playing games.

Warner's share from Napster was $110 million, according to documents it filed with the government last April. Warner said at the time that "we will be sharing (the money) with our artists and songwriters."

In June, Warner received an additional $52 million related to the legal cases, according to the documents. The label issued this statement on Thursday: "WMG is sharing the Napster settlement with its recording artists and songwriters and at this stage nearly all settlement monies have been disbursed."

Representatives from EMI and Universal Music Group say they also intend to share the settlement with artists. Sony BMG Music Entertainment was a financial backer of Napster and ended up paying big money to the other three music companies. Sony BMG did, however, receive a share of the Kazaa settlement.

Jay Rosenthal, legal counsel for the Recording Artists Coalition, a group representing the interests of music artists said that the labels have told him that they are trying to decide how to divvy up the money and have been sending payments for a while. He's skeptical to say the least.

"If anything has been paid so far, it has been minimal," Rosenthal said. "The labels are always going to try to hide the money or use some self-serving formula when they finally get around to paying the artists."

But a source within the music industry said that the talent managers aren't looking at the realities.

First, who could deny that the Napster and Kazaa cases, which lasted years, didn't run up massive legal bills, the source asked. Also consider the "inordinate amount of time" it takes to collect the money and figure out which artist's music was infringed, the source said. He added that the labels must split the money between scores of performers.

"The lawyers get their cut first," said the source. "Then the money has to be split among hundreds of different artists at each of the labels."

After all is said in done, according to the source, the process takes a long time and "nobody gets rich from this."

Rosenthal said he has heard all this before.

"The (labels) are certainly going to claim that the legal costs have eaten up the proceeds," Rosenthal said. "But I don't believe that is the case."

[dascha1]

It's a 'little' like the Software Industry

I mean, you have all these talented folks running around, speaking,
producing and engineering the hit solution, but the $$$$$$$$
instead builds the CORP and the top tier wind up owning the
world's largest yachts and planes.

[maciekjed]

Music Labels vs. Artists

Unfortunately Artists are on the bottom of the food chain. The industry the labels are the ones who are making real money... That is sad.
http://www.fusedworld.com

[oldguytoo]

labels vs. artists = management vs. labor

just like every other industry...it's management versus labor.
What else is new?

[pbg3445]

bilking is STEALING

Is this any different from what the P2P pirates are doing?
Well, yes. It's worse: the money from the file sharers is
theoretical--doesn't actually exist.
While this is real money, extorted by tear-stained evocations of
the poor, poor artists--and then pocketed by the legal
department.
It's STEALING.

[oldguytoo]

Bilking= stealing

True. But remember, the original Napster opened the door to the masses for stealing music thru downloads. P2P theorotical money translates to real money in the real world. Illegal downloading is stealing regardless of your excuses. Just because it can be done doesn't make it right. Plus, if you didn't like buying label produced CDs, don't buy them. Pursue other interests that are not morally wrong, and those that don't take food out of the mouths of artists, label employees, retailers, and industry linked citizens.

[Hoodgrown_Magazine]

Have the labels ever really cared about the artists?

Come on. We know the labels are out to only protect THEIR bottom line not the interest of the artists. That's old news. Is there really artists that thought THEY were going to see some of that money?

[jharrisofkansas]

rip off record companies

It has never been about the artist.....they will rip off the artist while they complain people are doing that to them...As I have posted before the music industry is the only industry where the creator of something does not have the ability to have full control and rights to their creation to sell and market as they see fit...Every other industry gets protection from our own Federal government in the form of anti trust laws that prevent large companies from doing any thing to limit your ability to sell and market your product....I am a composer and musician with a business background in manufacturing so I do know what I am talking about...Composers should look at the net as a new way to do business and finally have the ability to sell their product and keep all rights and control of it.

[zincmann]

The artists should sue the Record Companies now..

Hell now that youre in a Sue-A-Thon against the music buying public, why dont you turn around and sue the RIAA and the record companies. Its amazing how the shoe now is on the other foot, I will love to see what happens with that.

[troppp]

Sue for Defamation

The artists might be able to sue the RIAA for misrepresentation - just count the number of customers (old and new)that the RIAA scared away with their Orwellian business tactics. When I listen to music on the radio, I can't help but think of how the RIAA treats people. Then I don't even feel like listening to music, let alone buy it.

[Stephen Russell]

Lawyer fees

After the lawyers are paid off do you think that there would be much left?

Stupid artists.

[jsargent]

The logic

When an award is made it is supposed to include all the lawyers' fees. The details of the settlement will also include a breakdown of how much the lawyers get and how much the actual payment the artists should get. Out of $370 mil I would expect the artists to get $270 mil ($100 mil is a heck of a lot to give to lawyers).

[Vegaman_Dan]

RIAA wasn't about representing artists

The RIAA was only meant to extract money and distribute it amongst themselves and their legal attack dogs. The idea that they would represent the artists for whom they are suing small children and grandmosthers for is ludicrous.

It's all about the money.

[oldguytoo]

RIAA is the Labels group - not artists

Of course it's all about the money. This is America durn it. Capitalism. For napster and its users it was all about the money too. They didn't want spend their money to pay for music. They found a loophole via the internet to get music for free and have since justified their actions at the expense of the creative people, both artists and label people.
The record industry has alway been the black sheep of American entertainment. Notice, the video and video game industries are beginning to get real backing from Washington.

[sadchild]

the check's in the mail....

"file sharing hurts the artists! the poor artists! napster, pay us $270 million!"

years later....

(artist:) um, where is our money for all the suffering we went through?

(record label on cell phone from new yacht:) sorry, i'm going under a tunnel i can't hear you *click*

[Zaunto]

Declining CD sales...

Exactly.

And they wonder why there is a continuous decline in CD sales. Fewer people are going to brick and mortar stores and buying CD's. They are buying and downloading their favorite artists albums over the web and burning their own CD's.

[Zaunto]

Labels and RIAA

The artists will be lucky to ever see any of that Naptster and Kazaa money. You'll note that artists are not suing file sharer's, the RIAA is. I'm happy to be an independent artist selling my music directly to the public. The RIAA won't be suing anyone on my behalf.

[Jefferyslpalmer]

"A source within the music industry"? Names please.