Published Jun 19, 2015Modular Recordings to Be Absorbed into Universal Australia's Modular Recordings has helped bring the world bands like Tame Impala, the Avalanches, Cut Copy, Ben Lee and Wolfmother, but the celebrated label is now embroiled in legal drama. In addition to an ongoing court battle with BMG over Tame Impala royalties, the label's founder Steve "Pav" Pavlovic has now lost a lawsuit filed by Modular's parent company Universal Music Australia.
It seems that Pavlovic signed over his share in Modular on Christmas Eve last year. He claimed that the agreement had been terminated, but the Supreme Court of New South Wales has ruled that the deal was binding and that Modular and its roster has been officially absorbed by Universal.
"We are very pleased by the court ruling and look forward to continuing to work with Modular and its artists under the Universal Music Group umbrella," Universal exec George Ash said in a statement [via TheMusic.com.au]. "The court's ruling is in the best interests of artists and supports the label's leadership transition and ongoing success."
Meanwhile, Justice John Sackar had decidedly negative things to say about Pavlovic. In court papers, he said, "I formed a most unfavourable opinion of Mr. Pavlovic. He is a self-confessed liar who, it seems, effortlessly resorts to mendacity if he thinks it will suit his commercial ends. Indeed, the way the case was put on his behalf proceeds upon the acceptance that in January 2015 Mr. Pavlovic deliberately lied when he sent emails to representatives of the plaintiff stating that he had signed various documents."
The case will return to court so that the full details of the deal can be finalized. Pavlovic is expected to appeal the ruling, so we're guessing that it might be a while before BMG sees any of those Tame Impala royalties.