Record Labels Reach Deal to Pay Artists $50 Million in Unpaid Royalties

Authored by Mark Hefflinger on May 4, 2004 - 3:22am.

New York -- New York state Attorney General Eliot Spitzer announced on Tuesday that the state has reached an agreement with the major record labels and music publishers that will result in the distribution of $50 million in unpaid royalties to thousands of musicians. The payout comes after a two-year investigation into the accounting practices of the labels, which found that many artists and writers were not being paid royalties because record companies had failed to maintain contact with the performers and had stopped making required payments. In addition to more obscure artists, some of the checks will be going to top-sellers like David Bowie, Sean Combs, Dolly Parton and Dave Matthews. "As a result of this agreement, new procedures will be adopted to ensure that the artists and their descendants will receive the compensation to which they are entitled," said Spitzer. The labels said they will now list names of artists owed unpaid royalties online, as well as work with industry groups and unions to locate artists.
http://www.oag.state.ny.us/press/2004/may/may4a_04.html
http://www.mtv.com/news/articles/1486799/20040504/index.jhtml