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Record labels face $60 billion lawsuit

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Tue, 08 Dec 2009 11:33p.m.

By Dan Satherley

The 'big four' music labels – Sony, Warner, EMI and Universal – have been targeted in a CAN$60 billion class-action lawsuit in Canada.

The plaintiffs, led by the estate of jazz legend Chet Baker, claim the Canadian divisions of the big four have for decades failed to pay for the rights to use their music on compilation CDs and live releases.

The labels have for the past two decades released albums without obtaining the appropriate copyright licenses.

"Instead, the names of the songs on the CDs are placed on a 'pending list', which signifies that approval and payment is pending," reports the Toronto Star's Michael Geist.

"It is perhaps better characterised as a copyright infringement admission list, however, since for each use of the work, the record label openly admits that it has not obtained copyright permission and not paid any royalty or fee."

The list allegedly now contains over 300,000 songs, and the big four are yet to pay the copyright owners for additions made to the list as far back as the late 1980s. The Canadian Recording Industry Association, the lobby group which represents the labels, admits it owes at least CAN$50 million, but at CAN$20,000 a track – the going rate for copyright infringement in Canada – the potential liability for the industry is astronomical.

In recent months a 32-year-old mother-of-four in the US was fined almost US$2 million for infringing copyright by sharing 24 songs on the internet, and a US grad student was also fined, US$675,000, for sharing 30 songs.

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Comments

10 Apr 2010 01:03a.m.

Gerald wrote:

This is not about justice nor anything that is remotely just. It's about Big Business, and how they have politicians and even judges in their back pockets. But they have set the benchmark for copyright infringements in the music industry, now let them get the same "justice" the little infringers got. Should put some of them through bankruptcy. They have been doing this for decades, so in fact they are serial criminals. Will any of them end up in gaol? Not likely.

09 Dec 2009 04:38p.m.

Ears wrote:

Big labels, along with their pop music divisions, only legitimate right to existence is in order to subsidise classical and jazz recording, so what the hell is Baker doing threatening to put them out of existence. Horror, this could mean the end of recordings from the Berlin Philharmonic

09 Dec 2009 04:10a.m.

hmph wrote:

Sorry James, copyright is NOT insane, but you are right about making the punishment fit the crime, it is indecent to think the law would see mum and dad, brother n sister the same as one of "The Big Four" offenders. Fine big business's hard for they are, with intent making mega$$££€€s by not paying the rightful creator the correct fee's, but how can our average Joe's and Jenny's be seen as being on the same scale, it IS unjust.

09 Dec 2009 03:07a.m.

tony wrote:

what is good for goose is good for gander eh! sock it to em!

09 Dec 2009 03:05a.m.

Ziggy wrote:

The yanks have got the same mentality as the ancient Romans!Basicly-
F*** the little people and fighting for world domination-against Islam!

08 Dec 2009 11:52p.m.

James wrote:

copyright is insane - the punishment clearly needs to fit the crime - people who commit violent offences that ruin people lives get nothing like the same punishment.