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 Kazaa forked over $100 million. Some on the talent side suspect the top four record companies of foot dragging or playing “hide and seek” with the cash.
“”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
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.
But for its part, Warner Music Group says it isn’t playing games.
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