London - Major record label EMI, which was recently acquired by private equity firm Terra Firma, is considering leaving record industry trade groups including the Recording Industry Association of America (RIAA) and International Federation of the Phonographic Industry (IFPI), as a means of cutting costs, Reuters reported.

A source told Reuters that EMI is looking to "substantially" reduce the membership fees it pays to the groups, while FT.com reports that Terra Firma CEO Guy Hands sent letters to the heads of the organizations, threatening to cut EMI's annual commitments by half.

The RIAA and IFPI are engaged in lobbying lawmakers for copyright-friendly policy, as well as legal and public awareness campaigns against piracy.

The IFPI told Reuters it estimates that the four major labels -- EMI, Sony BMG, Universal and Warner -- provide around $132 million annually to IFPI, RIAA and other similar national associations.

Related Links:
http://snipurl.com/1ue5y (Reuters)

http://snipurl.com/1ue68 (FT.com)

http://www.riaa.com

http://www.ifpi.org

http://www.emigroup.com