New Law Lets Artists Audit Record Firms

Gov. Arnold Schwarzenegger signed a law giving recording artists more flexibility to audit record companies' finances in search of potentially unpaid royalties.

The law, which goes into effect Jan. 1, allows artists to conduct annual audits and applies to any record company doing business in California.

The law is the culmination of a campaign by some musicians, including Don Henley, to give artists more power to determine whether they are due royalty payments.