Artists Sue Canadian Labels Over Compilation Albums

Authored by Mark Hefflinger on December 8, 2009 - 1:32pm.

Toronto, Canada - Recording artists have filed a copyright infringement lawsuit against the four major label members of the Canadian Record Industry Association (CRIA), seeking between $50 million and $6 billion in damages for uncompensated use of their songs on compilation albums, Ars Technica reported.

As reported by blogger Michael Geist, labels in Canada typically create compilation albums without seeking authorization from or providing payment to artists, instead placing such songs on a "pending list."

This list dates to the 1980's, and now contains over 300,000 songs distributed on compilation albums for which artists have yet to be compensated.

The balance owed to artists is estimated at over $50 million.

However, if the class action litigation succeeds in convincing the courts that Warner Music (NYSE: WMG) Canada, Sony (NYSE: SNE) BMG Music Canada, EMI Music Canada and Universal Music Canada owe statutory damages for copyright infringement, the damages could exceed $6 billion -- at $20,000 per infringement.

Related Links:
http://snipurl.com/tm8et (Ars Technica)

http://www.michaelgeist.ca/content/view/4596/135/

http://snipurl.com/tm8fg (PDF of lawsuit)

http://www.cria.ca