EMI sues AOL for copyright infringement of songs

Aug 13, 2002 12:00 PM

By Sue Zeidler

LOS ANGELES, Aug 7 (Reuters) - Somewhere over the rainbow, one of the world's biggest media conglomerates is shouting copyright infringement as it launches a major lawsuit over the use of songs from such classic films as "The Wizard of Oz" and "Singin' in the Rain."

The EMI Group Plc's EMI Music Publishing filed suit seeking millions of dollars in damages against AOL Time Warner Inc. , Metro-Goldwyn-Mayer Inc. and related entities for unauthorized use of songs from catalogues once owned by United Artists Corp. and MGM/UA Entertainment Co.

In the suit, filed in the Southern District Court of New York, EMI contends that when it bought the catalogue in the 1980s, MGM/UA retained a license for limited royalty-free uses of certain songs.

But now that the MGM film library is part of the AOL Time Warner empire, EMI alleges the company is using the songs across its television, film and online properties in ways that were never authorized.

For example, AOL Time Warner may use the song, "We're Off to See the Wizard" to promote the film "The Wizard of Oz," but it is bending the rules by using songs from the film as background music for other promotional purposes on AOL, CNN or in Time Warner films without paying royalties to EMI.

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"The defendants' unauthorized use of these great songs has left us no choice but to file this lawsuit to protect our rights and those of our composers," said an EMI Music Publishing spokesperson.

A spokeswoman for AOL Time Warner declined comment. A spokeswoman for MGM said the company had not been contacted by EMI and had no information about the lawsuit.

"Based on the information made public, we see no basis for the claim," the spokeswoman for MGM said.

United Artists Corp. and MGM/UA Entertainment Co. sold the song catalogues to CBS Inc. in 1982, retaining a license for limited royalty-free uses of certain songs.

CBS then sold it to a music company called SBK Entertainment World Inc. in the mid-1980s, which was then acquired by EMI in 1989.

Meanwhile, Turner Broadcasting System Inc. bought the MGM Entertainment Co., home to more than 3,300 feature films, in 1986. In 1996, Time Warner merged with Turner Broadcasting System and the film library became part of the Time Warner company, which then merged with AOL in 2000.

EMI contends these royalty-free uses do not extend to AOL Time Warner Inc., Turner Broadcasting System, Inc., Turner Entertainment Co., Time Warner Inc., Time Warner Entertainment Company L.P., Metro-Goldwyn-Mayer Inc., Metro-Goldwyn-Mayer Studios Inc., or United Artists Corp.

"We tried to resolve this, but it fell on Hollywood deaf ears. We're asking the court to set a benchmark here so that these companies will pay for past uses and will not use them in the future without seeking a license from us," said Martin Bandier, chairman of EMI Music Publishing.