Record Labels, Artists, Music Publishers
A Bill designed to provide Californian recording artists with accurate accounting has won approval from the Senate Judiciary Committee. The Bill (SB1034) introduced by Senator Kevin Murray (D) would make it a “fiduciary duty” for labels to accurately calculate royalty earnings owed to artists.
Music industry officials oppose the Bill, saying it would impede labels from developing new business models in the face of surging piracy. RIAA (Recording Industry Association of America) President Cary Sherman testified Tuesday that the bill “would distort the intensely negotiated, arms-length contractual relationship between an artist and recording label by imposing a fiduciary duty only on one party.”
However, Committee members countered that only one party, the record company, holds the financial information to calculate royalties. The Recording Artists’ Coalition have repeatedly claimed that recording contracts are outmoded and complex, lack clarity in royalty calculations and contain numerous unjustifiable royalty reduction and discount provisions.