Monday, May 31, 2004
Recording Companies Agree to Pay $50M
Yahoo! News: "Major recording companies have agreed to return nearly $50 million in unclaimed royalties to Sean Combs, Gloria Estefan (news), Dolly Parton (news) and thousands of lesser known musicians under a settlement announced Tuesday.
A two-year investigation by New York state Attorney General Eliot Spitzer's office found that many artists were not being paid royalties because record companies lost contact with the performers and had stopped making required payments.
As a result of the agreement, Spitzer said, new procedures will be adopted to ensure that artists and their descendants receive the compensation they are entitled to get.
'Once the recording companies have received royalties, those royalties have to be disbursed to the artists who are owed those funds,' Spitzer said at a news conference.
'There are many artists who struggle. ... They depend on the stream of royalties,' he added.
The attorney general said about $25 million in royalties has already been paid, with the other $25 million still outstanding."