Recording Industry Contracts

Sony's Epic record division cut a deal Thursday for a multimillion-dollar joint venture with Brooklyn rap entrepreneur Lance Rivera, who goes by the name Un. Un, who brought lascivious rap queen Lil' Kim and gangsta rap crew Junior M.A.F.I.A. to Time Warner's Atlantic Group, signed a five-year deal with Epic after turning down offers from Mercury, Elektra, Universal and Atlantic. Debut albums by Lil' Kim and Junior M.A.F.I.A.

R.E.M., the hottest free agent in the music business, signed a five-album contract Saturday with Warner Bros. Records worth an estimated $80 million--the largest recording contract ever awarded, sources said. The Grammy-winning band's deal surpassed the $70-million mark achieved seven months ago by pop diva Janet Jackson as well as other mega-deals by such superstars as Michael Jackson and Madonna, whose six-album pacts included film and joint venture record label components.

Pop diva Janet Jackson is expected to sign a four-album contract today with Virgin Records worth an estimated $80 million--an unprecedented fee that analysts say could set the stage for another round of music industry mega-deals. The pact is the biggest ever awarded, surpassing the $60-million mark shared by such superstars as Michael Jackson and Madonna, whose six-album deals included film and joint-venture record label components.

Analysts and shareholders aren't the only ones scratching their heads these days about the chaos at Warner Music Group. * Frustrated representatives for some of Warner's best-selling acts--including R.E.M., Stone Temple Pilots and Van Halen--are also concerned about the future of the $4-billion firm.

In a victory for the new regime at Warner Bros. Records, veteran rock star Neil Young is expected to sign a five-album deal today with its sister label, Reprise Records. Young, whose contract with the Warner-owned label expired last year, was one of several top artists who threatened to jump ship in October following a corporate battle that forced the departure of beloved Warner executives Mo Ostin and Lenny Waronker.

Just as actress Olivia de Havilland brought down the Hollywood studio system in the 1950s and outfielder Curt Flood fought for free agency in baseball in the 1970s, rock star Courtney Love is determined to radically redefine the nature of the music recording business for the next century. Love is seeking to break her contract with Vivendi Universal, the world's largest record conglomerate, and expose what she calls the "unconscionable and unlawful" business tactics of the major record labels.

Pop diva Mariah Carey has signed a four-album contract with Virgin Records worth an estimated $80 million, a mega-deal that ranks among the biggest ever awarded to an entertainer, said sources close to the negotiations. The New York native, who turned 31 last week, has been the target of a fierce industry bidding war since she began approaching the end of her Sony contract, which was set to expire with the release of a soundtrack album this year.

Napster Inc., the embattled online song-swapping service, enlisted new European allies Tuesday when it struck licensing deals with two large groups of independent record companies. The deals cover songs by such popular artists as Moby, Tom Jones and Tricky, but they cover only a portion of the rights needed before Napster users can legally trade those songs. In addition, the deals don't kick in until Napster begins a membership service that requires users to pay a monthly fee.

State and federal lawmakers are planning to launch hearings into music industry business practices after a series of high-profile lawsuits and newfound activism among recording artists. Sharp criticism of industry customs is resonating in Washington and Sacramento, where officials are preparing to examine what rock stars such as Courtney Love and Don Henley are calling the "unconscionable" contracts and accounting practices of the Big Five music conglomerates.

Artist Direct, the latest start-up label from Los Angeles entrepreneur Ted Fields, has signed rock act Custom to an estimated $1.4-million record deal. Fields beat out DreamWorks and AOL Time Warner's Atlantic Group in a fierce bidding war to land the young Canadian rock act after its recent exit from EMI Group's Virgin Records. EMI freed the band from a long-term contract just months before the release of its debut album, forfeiting nearly $750,000 in recording costs on the project.