Published Apr 28, 2011While major record labels are feeling the pinch of a changing industry, some are cutting corners when it comes to paying proper royalties. The latest behemoth accused of owing money is the Warner Music Group, which has been accused of selling rap songs owned by DM Records without offering the proper royalties.
AllHipHop explains that DM Records owns the copyrights for thousands of hit records from the likes of Tupac Shakur, MC Breed, Jody Watley and Prince. They even own the copyright for Tag Team's classic jock jam, "Whoomp! (There it Is!)"
Shortly after both parties entered into a digital agreement, giving WMG non-exclusive rights to distribute DM's digital catalog of songs, WMG allegedly held all of the digital revenue without paying DM Records a cent and stopped providing DM Records with digital sales reports in February 2011. As a result, DM Records is suing WMG for millions of dollars in damages for copyright infringement, as well as court costs and lawyer fees.
The court documents can be viewed here.
In their defence, the Warner Music Group has reportedly lost over $10 billion in the last ten years. So if the label hasn't paid you in a while, DM Records, take it easy; it's struggling to simply keep the gas bills paid at the label's various office building.