Home Music Sister Sledge Files Class Action v. Warner Music: “We Are NOT Family”

Popular seventies recording act Sister Sledge–“We Are Family” was their monster hit– and country star Ronnie Blakely of the movie “Nashville”–have filed a class action suit against Warner Music Group. This is a big deal. The suit is based on Eminem’s successful similar suit against Universal Music Group from last year. It’s based on the record companies’ alleged non payment of royalties on digital downloads, mostly to “legacy” artists whose contracts never foresaw the advent of ITunes and the disappearance of physical records.

The Warner suit has far reaching implications because it encompasses not just Warner, but its especially lucrative catalog business via Atlantic Records (Aretha Franklin, Sam & Dave, Otis Redding, Wilson Pickett) and Rhino Records (which has repackaged all that material for decades). It’s also a class action suit, which means dozens of artists from the heyday of Warner-Elektra-Atlantic-Rhino can join the suit as it progresses. Damning for WMG are former CEO Edgar Bronfman’s quarterly proclamations to shareholders over the last six years that “digital sales are booming” (I’m paraphrasing) while everything else was in the toilet. Recordings of those analysts calls are sure to be played before some jury in the future.

The suit can be distilled thusly: “However, in breach of its contractual obligations under its Standard Recording
Agreements, WARNER has treated its transactions with Digital Content Providers as “sales” rather than “licenses.” In so doing, WARNER has applied the incorrect formula for calculating royalties owed to Plaintiffs and Class members, taken unjustifiable deductions (including, but not
limited to, the Net Sales Deduction, the Container Charge deduction, and the AudiophileDeduction), and applied a royalty percentage that is, in general, less than half of what it should beapplying in its computation.”

The suit was filed by four law firms. The principal is Pearson, Simon, Warshaw, and Penny in San Francisco.

 

 

Author
Roger Friedman began his Showbiz411 column in April 2009 after 10 years with Fox News, where he created the Fox411 column. He wrote the Intelligencer column for NY Magazine in the mid 90s, reporting on the OJ Simpson trial, as well as for the real Parade magazine (when it was owned by Conde Nast), and has written for the New York Observer, Details, Vogue, Spin, the New York Times, NY Post, Washington Post, and NY Daily News among many publications. He is the writer and co-producer of "Only the Strong Survive," a selection of the Cannes, Sundance, and Telluride Film festivals, directed by DA Pennebaker and Chris Hegedus.

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