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Static Builds Over Music Club Accord

Publishers say a proposed settlement of a copyright lawsuit could hurt composers.

May 24, 2005|Charles Duhigg, Times Staff Writer

Three years ago, when a couple of songwriters and the daughter of a famed jazz musician filed a lawsuit against the nation's two major record clubs, it seemed like just another skirmish in the continuing fight for artists' rights.

Today, however, as a settlement in the songwriters' suit against Columbia House Co. and BMG Direct Inc. nears court approval, what was once an isolated battle has turned into an industrywide war.


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Since becoming a federal class action, the suit has quietly expanded to include thousands of songwriters and hundreds of millions of dollars in disputed revenue. Now a proposed settlement has many music publishers up in arms, claiming that it will permanently disadvantage composers.

If approved, the settlement will no longer require that Columbia House and BMG Direct -- best known for sending listeners 12 CDs for the price of one -- seek permission to distribute copyrighted songs. Instead, a new Internet-based system would give songwriters 30 days to object before the license is automatically granted.

"This settlement turns the law on its head," said Irwin Robinson, chief executive of Famous Music Publishing Cos. and chairman of the National Music Publishers' Assn. "When you create art, it should be yours to keep unless you give permission. It shouldn't be the artists' obligation to object."

Robinson is one of several publishers who say they plan to oppose the settlement when it is presented in a Los Angeles courtroom July 11. A federal judge has already granted it preliminary approval.

Representatives of BMG Direct -- whose parent company, Bertelsmann, announced this month an agreement to acquire Columbia House pending regulatory approval -- contend the proposed system would streamline the company's ability to solicit rights from songwriters on millions of albums that would otherwise go unsold.

"BMG Direct has always respected the rights of music publishers and their copyrights and will continue to do so," said BMG Direct spokeswoman Paula Batson in an e-mailed statement. "Publishers have the right to object to the use of their songs on a club release and now under the settlement will have additional technology to accomplish this quickly and easily."

Columbia House declined to comment.

The controversy dates to 2002, when songwriters William Griffin Jr., Leroy Preston and Babette Ory, daughter of famous New Orleans trombonist Edward "Kid" Ory, sued the two music clubs, alleging their copyrights had been violated.

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