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Author: Subject: Court Rules That Allman Brothers Band Action Against UMG Recordings Will Proceed

Peach Head





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  posted on 9/16/2009 at 09:17 AM

This Just in...

Court Rules That Allman Brothers Band Action Against UMG Recordings Will Proceed

Rejects UMG's Motion to Dismiss Case Seeking Millions for Underpayment of Digital Download Royalties and Refusal to Re-Negotiate Terms in Good Faith

NEW YORK, Sept. 16 /PRNewswire/ -- Judge P. Kevin Castel of the United States District Court for the Southern District of New York recently ruled in favor of the surviving original members of the Allman Brothers Band -- Gregg Allman, Butch Trucks, Jaimoe and former member Dickey Betts -- denying a motion to dismiss the case filed by defendant UMG Recordings.

"We are pleased that the Allman Brothers Band will now have the opportunity to show the court how badly UMG has treated the band and to finally receive a fair share of the many millions of dollars UMG has made from the band's work," said band manager Bert Holman. "The band made these classic recordings in the 1960s and 70s for its first record label, Capricorn Records. That label took advantage of the band's inexperience at the time, failed to pay royalties to the band members and Capricorn eventually went bankrupt from mismanagement. Polygram, UMG's predecessor, acquired the recordings out of that bankruptcy. By that time, these classic albums were already established hits and had recouped any recording expenses many times over. Polygram and its buyer UMG had nothing to do with the creation of these recordings, incurred no risk or cost, and never had to spend a dime marketing them or promoting the band. It is outrageous that UMG refuses to honor its contract with the band and pay a fair share of the money it receives when it licenses the recordings to third parties like iTunes and simply sits back and collects a fee whenever iTunes licenses a download."

Rather than pay the Allman Brothers Band at the rate specified for such licenses -- 50% of the revenues received by UMG for third-party uses -- UMG has paid the band at a much lower rate negotiated in 1985 for vinyl albums manufactured and sold by UMG through brick-and-mortar record stores. UMG also failed to fulfill its contractual obligation to renegotiate royalty rates and other terms three years after each release of a compact disc, or other product in a new format, featuring an Allman Brothers Band recording.

UMG filed a motion to dismiss the band's claims asserting that sales of digital downloads by third parties like iTunes or Amazon were identical to sales of vinyl records in record stores as defined in the parties' 1985 agreement and that a renegotiation in 1994 extinguished UMG's obligation to ever renegotiate royalty rates again. The court rejected all of UMG's arguments. Judge Castel ruled that the band's allegations about UMG's deals with the digital services, if true, were sufficient to present a valid claim for underpayment of royalties and noted that the court must analyze the terms of UMG's agreements with the various digital services to decide whether the band's allegations were true. Judge Castel also ruled that the 1994 renegotiation did not extinguish UMG's obligation to renegotiate rates for releases in new formats.

The case is now proceeding through discovery and is presently scheduled to go to trial in early 2010. The docket number in the Southern District of New York is 08-Civ.-7113 (PKC).


SOURCE Mitch Schneider Organization

 

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Extreme Peach



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  posted on 9/16/2009 at 09:36 AM
interesting find!

 

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Universal Peach



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  posted on 9/16/2009 at 09:46 AM
Good for the ABB. I hope they get every dime they're entitled to....
 

Sublime Peach



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  posted on 9/16/2009 at 10:18 AM
Really it is such a sad situation how Gregg and the guys were taken advantage of at the time. And really through out the whole beginning stages of their careers. And I suspect that is partly why Melissa is a song we hear a lot. You can take a way a guy's legal right to the song, you can stiff him on the money, but you can't take away his right to play it and really, when you get down to it, you can't take away his right to own it.

This kind of thing happened to so many artists from the early stages of rock and roll. It is a travesty for the art form, and a tragedy for the industry.


~~~~~~~~~~~~~~

My favorite Mark Knopflier song

Boom Like That

I’m going to san bernardino
ring-a-ding-ding
milkshake mixers
that’s my thing, now
these guys bought
a heap of my stuff
and i gotta see a good thing
sure enough, now
or my name’s not kroc
that’s kroc with a ‘k’
like ‘crocodile’
but not spelled that way, yeah
it’s dog eat dog
rat eat rat
kroc-style
boom, like that

The folks line up
all down the street
and i’m seeing this girl
devour her meat, now
and then i get it, wham
as clear as day
my pulse begins to hammer
and i hear a voice say:
these boys have
got this down
oughtta be a one of these
in every town
these boys have
got the touch
it’s clean as a whistle
and it don’t cost much
wham, bam
you don’t wait long
shake, fries
patty, you’re gone
and how about that
friendly name?
heck, every little thing
oughtta stay the same
or my name’s not kroc
that’s kroc with a ‘k’
like ‘crocodile’
but not spelled that way, now
it’s dog eat dog
rat eat rat
kroc-style
boom, like that


You gentlemen
ought to expand
you’re going to need
a helping hand, now
so, gentlemen
well, what about me?
we’ll make a little
business history, now
or my name’s not kroc
call me ray
like ‘crocodile’
but not spelled that way, now
it’s dog eat dog
rat eat rat
kroc-style
boom, like that

Well we build it up
and i buy ‘em out
but, man they made me
grind it out, now
they open up a new place
flipping meat
so i do, too
right across the street
i got the name
i need the town
they sell up in the end
and it all shuts down
sometimes you gotta
be an s.o.b.
you wanna make a dream
reality
competition?
send ‘em south
if they’re gonna drown
put a hose in their mouth
do not pass ‘go’
go straight to hell
i smell that
meat hook smell
or my name’s not kroc
that’s kroc with a ‘k’
like ‘crocodile’
but not spelled that way, now
it’s dog eat dog
rat eat rat
kroc-style
boom, like that


[Edited on 9/16/2009 by Angelemerald]

 

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World Class Peach



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  posted on 9/16/2009 at 10:26 AM
Good for the ABB. I hope they get every dime they're entitled to....
==================================================
me too!!! it's about f*cking time!!

 

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A Peach Supreme



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  posted on 9/16/2009 at 10:41 AM
quote:
"The band made these classic recordings in the 1960s and 70s for its first record label, Capricorn Records. That label took advantage of the band's inexperience at the time, failed to pay royalties to the band members and Capricorn eventually went bankrupt from mismanagement.
Thanks, Phil.

These guys busted their butts crusing relentlessly in a decrepit Econoline (IIRC) van, freezing when necessary, begging dimes to cross the Golden Gate Bridge ("Hi, we're the Allman Brothers Band. Give us a dime for the toll and we'll get you in for free!"), sharing one or two plates of food for all the band till Mama Louise empathized, and on and on. And all the same, their company, their "friend's" company, stiffed them royally.

Grrrrr!

Billastro

 

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https://www.davidmalin.com/fujii/source/CMa.html

"I can't say as ever I was lost, but I was bewildered once for three days."

—Daniel Boone

 

Zen Peach



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  posted on 9/16/2009 at 11:49 AM
quote:
Good for the ABB. I hope they get every dime they're entitled to....
Ditto!

 

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A Peach Supreme



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  posted on 9/16/2009 at 12:20 PM
Ditto!!!

 

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Zen Peach



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  posted on 9/16/2009 at 12:21 PM
I think this is wonderful news!

 

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Peach Extraordinaire



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  posted on 9/16/2009 at 05:03 PM
i hope umg has to call in a proctoligist when they get done with them

 

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Zen Peach



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  posted on 9/16/2009 at 06:21 PM
quote:
quote:
"The band made these classic recordings in the 1960s and 70s for its first record label, Capricorn Records. That label took advantage of the band's inexperience at the time, failed to pay royalties to the band members and Capricorn eventually went bankrupt from mismanagement.
Thanks, Phil.

These guys busted their butts crusing relentlessly in a decrepit Econoline (IIRC) van, freezing when necessary, begging dimes to cross the Golden Gate Bridge ("Hi, we're the Allman Brothers Band. Give us a dime for the toll and we'll get you in for free!"), sharing one or two plates of food for all the band till Mama Louise empathized, and on and on. And all the same, their company, their "friend's" company, stiffed them royally.

Grrrrr!

Billastro



You don't know the entire story. It's not exactly like presented here. For one thing, Phil spent almost two million dollars of his own money before there was ever a return of any kind on his investment. And in fairness to Phil, I don't think the band would ever have happened had he not hung in there making things happen. Nothing in this story is simple and Phil ultimately got jerked around as much as the band by Polygram.

 

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Sometimes we can't choose the music life gives us - but we damn sure can choose how we dance!


 

Zen Peach



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  posted on 9/16/2009 at 06:30 PM
And I suspect that is partly why Melissa is a song we hear a lot. You can take a way a guy's legal right to the song, you can stiff him on the money, but you can't take away his right to play it and really, when you get down to it, you can't take away his right to own it.

Gregg sold the rights to Melissa to Steve Alaimo in Miami.....Phil had nothing to do with that because it happened before Phil came along. My understanding is Gregg was able to buy it back but I don't know the details.

 

____________________
Sometimes we can't choose the music life gives us - but we damn sure can choose how we dance!


 

Zen Peach



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  posted on 9/17/2009 at 07:21 AM
quote:
quote:
quote:
"The band made these classic recordings in the 1960s and 70s for its first record label, Capricorn Records. That label took advantage of the band's inexperience at the time, failed to pay royalties to the band members and Capricorn eventually went bankrupt from mismanagement.
Thanks, Phil.

These guys busted their butts crusing relentlessly in a decrepit Econoline (IIRC) van, freezing when necessary, begging dimes to cross the Golden Gate Bridge ("Hi, we're the Allman Brothers Band. Give us a dime for the toll and we'll get you in for free!"), sharing one or two plates of food for all the band till Mama Louise empathized, and on and on. And all the same, their company, their "friend's" company, stiffed them royally.

Grrrrr!

Billastro



You don't know the entire story. It's not exactly like presented here. For one thing, Phil spent almost two million dollars of his own money before there was ever a return of any kind on his investment. And in fairness to Phil, I don't think the band would ever have happened had he not hung in there making things happen. Nothing in this story is simple and Phil ultimately got jerked around as much as the band by Polygram.


Exactly. The truth is that they were all in over their heads as far as the business went and that includes Phil. Also they are far from the only band this happened to. The other 99% of bands would agree. The musis business is a very cold one and despite what many think, the money does not get passed around as much as expected.

Hope the band gets any cash they deserve.

 

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Chicago Black Hawks - next season.


 
 


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