Calif. bill seeks to resolve recording industry spat

Jun 25, 2002 12:00 PM

By Sue Zeidler

LOS ANGELES, June 18 (Reuters) - One day after the Dixie Chicks settled a major lawsuit with their record label, a California legislative committee moved a bill on Tuesday designed to encourage other angry music stars to settle similar gripes with the industry as a whole.

The state Senate Judiciary Committee passed a modified version of a bill introduced by state Sen. Kevin Murray which would set new limits on the contracts that the recording industry signs with its top performers.

The bill was the result of lobbying by the Recording Artists Coalition (RAC), led by stars like Don Henley, Sheryl Crow and the Dixie Chicks, who banded together against an exemption in California's state labor code that allows record companies to contractually bind artists to labels for more than seven years, unlike film and movie talent.

Artists like Courtney Love and the Dixie Chicks have filed lawsuits challenging the validity of their recording contracts, calling them unconstitutional.

But the Dixie Chicks settled their lawsuit this week and Love is currently involved in court-ordered mediated discussions.

David Altschul, an attorney representing the Recording Industry Association of America (RIAA), said the version of the bill approved by the committee was "designed to encourage both sides to engage in discussions and resolve differences."

"We've been engaged in discussions, but its a complicated process. We've made a lot of headway and we're hopeful and confident that we'll resolve the issues," Altschul said.

Murray, for his part, said the legislation would ensure that progress is made one way or another.

"I'm pleased that issue moves forward. I'm not holding a whole lot of hope they'll resolve anything," he said.

The bill now moves to the state Senate floor and from there on to the Assembly.

SETTLEMENT TALKS UNDERWAY

Both the bill and the talks come as some of the bigger acts involved in the dispute appear to be participating in settlements or settlement discussions with RIAA members.

The RIAA represents all the big labels, including Bertelsmann AG , EMI Group Plc , AOL Time Warner Inc , Vivendi Universal and Sony Corp <6758.T>.

The Chicks' falling out with Sony Music had thrust them into the forefront of the dissident artists' group.

After their legal battle with Sony erupted last year, the Dixie Chicks joined the RAC, pressing for better treatment of artists by the music industry.

In the Chicks suit, they charged Sony engaged in "systematic thievery" by underpaying $4 million in royalties owed the trio for their first two multiplatinum releases from Sony's Monument Records imprint.

The trio's suit counted 30 separate instances in which Sony allegedly failed to properly account for or pay the group what they were owed. They said Sony's contract was structured in such a way as to virtually enslave its talent, "obligating its artists to continue to record for Sony no matter how repeatedly and blatantly Sony breaches its payment obligations."

Sony in turn accused the singers of making a "sham" attempt to escape their recording pact after twice failing to renegotiate their deal for more money.

The two sides announced they had reached a settlement Monday, which reportedly gives the trio a new contract with a $20 million advance as well as requiring them to reimburse Sony for about $15 million in marketing costs before they collect royalties from album sales.

The Chicks' manager Simon Renshaw said that despite the new deal, the trio is still very supportive of the coalition's movement.

"I think that what's in the court record in this case is a service to all artists.. and it's there for everybody to review and use," said another person familiar with the suit.