Music Business News Articles

News archive items listed by month below (click here).

March 2006 News Updates

WEMBLEY: UPDATE - DELAYED TILL 2007 31/03/06
24 hours is a long time in the Wembley Stadium PR disaster. After an announcement to the Australian Stock Exchange by lead contractor Multiplex, it is now expected that the Football Association will announce that Wembley Stadium will not open until 2007 and that all concerts and football matches planned willl be cancelled meaning that the Rolling Stones and Robbie shows as well as Bon Jovi are now looking for new homes. Take That have already moved to Milton Keynes Bowl and th FA Cup Final to Cardiff. 

SSSHHHH - ITS THE MIAMI DANCE SUMMIT 31/03/06
The Miami Winter Music Conference and M3 Summit (Miami Music Multimedia) has been heralded as 'much quieter' after city's much-anticipated noise ordinance went came into effect. The Miami Herald reports that revellers packed the city's nightclubs and hotels and attended hundreds of events hosted by some of the world's top DJs and that there were poolside parties and sand fiestas galore - but there were also about 20 code enforcement officers out patrolling the streets. Some were on foot, others on bicycles. They worked late into the night, hitting party houses and hotel parties, looking and listening for parties that got too loud. On Saturday night, several South Beach hotels, including the Maxine and the Raleigh, were cited for noise and sanitation violations, and a party at a South Pointe bar was shut down for a failure to otain a dancing licensce. The Doubletree Surfcomber, which was hosting an Absolut Vodka event was issued with a written warning about noise as it was their first offence. Commissioners approved the city's noise ordinance at their March 8th meeting after years of city-brokered negotiations between residents and business groups. The law sets out a clear schedule of warnings and fines. Individuals and businesses are entitled to three documented warnings a year before fines starting at $250 are levied. Fines can escalate to thousands of dollars. However not all residents support the new ordinances, some saying that the city should make an excepton for the event. 

WEMBLEY - NOW THE CONCERTS ARE CANCELLED 30/03/06
Way over budget - way ovedue - and no completion date in sight. That sums up the position with what was meant to be the UK's flagship venue, Wembley Stadium. Having hit football now with the FA Cup Final alreday having moved to Cardiff's Millennium Stadium, now two Bon Jovi concerts on June 10 & 11 June and then two days with Take That have been cancelled. Problems as diverse as the pipe supplier pulling out after a row with main coontractor Multiplex and crane operators trhreatened by blackmailing snipers, last week saw problems with sewers and then part of the roof collapsed: now 200 workers have been laid off as another sub contractor claims that they are owed 'several million pounds'. Whilst Take That seem keen to move to Milton Keynes Bowl (which actually will have bigger capacity) Twikenham is seen as the favourite replacement venue for the concerts but this will be subject to local authority licences. Both the Robbie Williams and Rolling Stones dates (in August) seem to be in limbo at the moment until a firm handover date is established).

NEW RESEARCH SAYS THAT MOBILE DOWNLOADS ARE EXPLODING 30/03/06
ABI Research reports that full-track over-the-air downloads have grown by a staggering 2,000% in the past year. In 2004, full-tracks to mobile generated $12.4M, but last year they topped $251M. Based on these figures, ABI projects that this market will reach $9.3B by 2011. The market for mobile downloads, it suggests, is heavily dependent on PC penetration. Asian consumers (especially in Japan) are more focused on mobiles and fixed-line downloading makes up a tiny fraction of digital sales. The report concludes that the full-track market in the US will be "less successful" than in Asia precisely because of the high PC penetration there. In the UK the bigg selling Gnarls Barkley's 'Crazy' looks set to make chart history and be the first ever UK number 1 based entirely on downloads. Physical formats are not out until next week, but changes in the chart rules mean first week digital sales count From Five Eight Magazine

CHINA STARTS TO TACKLE PIRATES 30/03/06
After years of lobbying and threatened trade sanctions, China appears to be making serious steps to clamp down on piracy. The recent shutting down of six pirate CD and DVD plants (and the halting of production at a further eight) has been called "a promising step" by the IFPI. It is estimated that 85% of sales in China are of pirate product. In other news in China, the first issue of 'Rolling Stone' magazine sold out on release although the magzine apprars not to have official government approval as yet for its JV with local Chinese publisher.

DEATH ROW AT RISK OF RECEIVERSHIP 27/03/06
California Superior Court Judge Ronald Sohigian has ruled that Death Row Records will be placed in receivership unless label founder Marion "Suge" Knight appears at a debtor hearing next month.The ruling came in a lawsuit by an imprisoned drug dealer, Michael Harris, who is seeking half of a $107 million award to the inmate's ex-wife, Lydia Harris, who claimed she helped start the rap record empire and that Knight owed her the money. Michael Harris also claims he put up $1.5 million from behind bars to help start the record label, a contention that Knight has repeatedly denied. Lydia Harris received the $107 million judgment a year ago and the parties have been fighting in court ever since; lawyers for Michael Harris have accused Knight of trying to evade his legal obligations by failing to show up for debtor examinations three times. He was also absent from yesterday's hearing. Knight's lawyer, Dermot Givens, asked the judge for a postponement on grounds that Knight was hiring a new team of lawyers for the case. But the judge refused. "There has been a very, very protracted history of difficulty in this case," said Sohigian. Attorney Rex Beaber, who represents Lydia Harris, cited a long string of what he termed "frivolous motions" by Knight including an effort to move the case to federal court where it was rejected and sent back to state court. he asked the court to immediately appoint a receiver for fear of Knight moving assets. The Judge granted the motion for receivership but stayed its effect pending Knight's April 1st appearance. Judge Sohigian also enjoined Knight from transferring or secreting any assets. Last December, a judge in Monterey County froze Knight's assets, saying Knight and his lawyers had failed to answer questions and provide information in the case.
Source www.billboard.com

TOWER OF LONDON NEW BACKDROP FOR MUSIC 27/03/06
One of London's most inconic landmarks, the Tower of London, will become the backdrop for a new festival which will feature James Brown and the Pet Shop Boys amongst the first headliners. The festival which will run from June 28th to July 14th joins the Wireless Festival in London's Hyde Park as new festivals on the London Calendar. The Princes Trust and Capital Radio recently announced that the Party In the Park, a feature in London for many years until its cancellation in 2005 to let Live8 go ahead, would not be taking place in the forseeable future.

PEOPLE IN MUSIC 27/03/06
EMI Music Italy appoints Claudia Lisa to the newly-created role of digital business development manager. Tony Kanal from No Doubt has set up his own label – Kingsbury Studios. RIP and a fond goodbye to Pio Leyva, aged 88, veteran Cuban performer and master of the Cuban music style montuno who enjoyed major success late in life with the Buena Vista Social Club and RIP Anselemo Colzani, operatic baritone whose robust vocal style was accompanied by a vivid stage presence, aged 87. And a sad farewell to Brian Daley, a.k.a DJ Swing, one of the most successful R&B DJs of his generation and MOBO award winner. He died of cancer. And farewell to Country Star Buck Owens (76) country music songwriter Cindy Walker (87) , Spanish singer Rocio Durcal, composer David Blume (74) and conductor Sarah Caldwell (82).

BERTLESMANN STAKE IN SONY-BMG FOR SALE? 27/03/06
The Financial Times reports that Bertelsmann is considering selling off its music publishing arm and its 50% stake in Sony BMG. Its total music interests could be worth up to E2 billion. The sale will all depend on what Groupe Bruxelles Lambert (GBL) plans to do with its 25% stake in Bertelsmann - GBL wants to float the stake on the stock market - Bertlemann's other investors are against this. The German media company could sell off its music assets to raise money to buy out GBL's stake and thereby avoid an IPO. GBL is Bertelsmann's only outside investor and its share is valued at E5B. If Bertelsmann does move to sell its half of Sony BMG, Sony would have first refusal to take full control. Other options include Sony seeking another investor to take Bertelsmann's place or selling off its 50% stake as well. 

ILLEGAL DOORMEN AND LATE NIGHT TAKEWAYS TARGETED IN UK 27/03/06
An operation inspecting nightclub and pub door bouncers across south Wales found 31 working without a licence. More than 600 door supervisors were spoken to in a check of 223 licensed premises on Saturday 25th March according to a report from the BBC. Police and the Security Industry Authority (SIA) acted after concerns raised by the public. Pubs and clubs in Cardiff, Barry, Merthyr, Pontypridd, Bridgend, Neath, Port Talbot and Swansea were all visited at the same time. By law, door supervisors must obtain an SIA licence. Those without one are committing a criminal offence, which carries fines of up to £5,000 or six months prison sentence. And local authorities have begun to use provisions of the Licensing Act 2003 to close down fast food outlets which are magnets for late night trouble. The Warwick Pizza and Kebab shop in Carlisle, Cumbria, was refused a post 2am licence to serve hot food. Police said that the area around the takewaway were 'without a doubt' the city's worst area for alcohol related violent crime. 48 incidents were reported last year to November 24th. And in Blackpool the Funny Boyz takeaway has been closed at a specially convened meeting of the Local Authority licence committee after health and safety breaches, police evidence of weapons found on the presmises and numerous incidents of violence culminating in a murder. The licence holder, Tariq Mohammed Albattikhi, appeared at the town hall with legal representation and now has 21 days to appeal the decision, during which his business can stay open. This was the first such application made in Blackpool under the new powers of the Licensing Act 2003. Finally Stafford Borough Council has warned takeaway owners to ensure they have the correct licence after a kebab shop owner was fined for serving food after 11pm after the owner of Piccolo's Pizza and Kebab Land in Stone was fined £300 and ordered to pay £210 costs. Under the Licensing Act 2003, which legalised 24-hour drinking, all places serving hot food or drink for immediate consumption between 11pm and 5am must now have a licence. The legislation covers super-markets and cinemas as well as pubs, restaurants and takeaways.

APPLE ATTACK NEW FRENCH LAW 23/03/06
Apple has attacked the French National Assembly's new bill that will force interoperability between platforms if approved by the French Senate approves. Apple admitted that the law would actually serve to boost iPod sales but warned that users could load the players with 'interoperable' music that was not "adequately protected". It said that, if this happened, the change in French copyright law would amount to little more than "state-sponsored piracy". It also said that the new laws could cause legitimate sales to slump at a crucial point when legal services are getting a foothold in the market. The IFPI responded by saying that interoperability could be an important factor in driving sales but urged caution. source  Five Eight magazine

MUSICAL PEOPLE 23/03/06
Vince Power, former grand fromage at the Mean Fiddler Group before selling up, has bought a majority share in the Spanish Benicassim festival. It is understood that as part of the sale of the Mean Fiddler to Clear Channel/MSD Power is not allowed to own or run any UK festivals for the next three years.Elsewhere Roger Widynowski is promoted to VP of publicity at RCA Records. Birgit Adels has been named as president of EMI Music Germany (effective from 3rd April). She was formerly CEO of Northern Europe at the Prada Group.

SONGWRITERS PUSH FOR A BIGGER SHARE OF DOWNLOAD PRICE 23/03/06
Adam Singer of MCPS-PRS Alliance the UK collection society which represents songwriters, composers and music publishers suggests that talks with the BPI over royalty rates for songwriters on downloads are "close to collapse". The BPI counters that talks are still ongoing. Songwriters are opposed to reductions in the royalty rate they would get on a £0.79 download (from 6p to 2.5p). The Alliance wants the rate increased to between 7p and 9p. There are also calls for labels to disclose how much exactly they are making from downloads.

TYLER'S SURGERY MEANS AEROSMITH CANCELLATIONS 23/03/06
Aerosmith have been forced to cancel the remaining dates on its spring tour with Cheap Trick. Billboard.com report that lead singer Steven Tyler will have to undergo throat surgery and will be placed on total vocal rest for an extended period of time. Billboard also report that the band played a handful of shows earlier this month but Tyler's condition did not improve and he was advised by doctors to take immediate action.

RADIOHEAD TO DITCH ALBUMS? 23/03/06
Radiohead have hinted that they might break from the traditional album release model and put content online as 'the mood takes them'. At the 2005 In The City Conference keynote speaker Ralph Simons suggested that in the future artists may well release songs as 'clusters' of three or four songs rather in the traditional 'album' format especially with the developing (mobile) download market and new modes of counsumer use of music.   

NEW REPORT DAMNS GOVERNMENT MANAGEMENT OF UK'S NEW LICENSING ACT 20/03/06
A new Select Committee report damns the Department of Culture Media and Sport’s poor management of the introduction of the new Licensing Act 2003 and warns that this must not be repeated when the UK’s new gambling regime is introduced. The cross-party select committee said that pub landlords, councils and residents were put under "unnecessary stress because of late guidance, inconsistent advice and unclear information from the department".  Committee chair Phyllis Starkey MP said that the "dilatory" approach of Culture Secretary Teresa Jowell's department was "completely unacceptable" and concluded it "failed to administer the transition period effectively”. The responsible minister is James Purnell MP. Shadow Secretary of State for Culture, Media and Sport, Hugo Swire MP, added this: "Clearly the Government's handling of the new licensing laws has been a shambles, and it is local authorities, village halls and community centres who are left to deal with the mess and the bill. And it seems that the Secretary of State for Culture Media & Sport had now breached the Act herself:  Ms Jowell’s and friends rendition of ‘The Women Are Marching on’ in London’s Hyde Park on International Women’s Day would be classified as live music and therefore regulated entertainment (there was an audience as the press had been invited). No licence had been obtained from Westminster Council and one was needed. Westminster have said they will not prosecute! And the Royal Automobile Association have warned that late night coffee and snacks at petrol station forecourts and service stations could also be a thing of the past despite government campaigns to urge drivers to take a  break. the provision of hot snacks between 23.00 and 05.00 needs a premises licence. Finally it has become clear that up to 50,000 static guards and CCTV operators will have failed to obtain or will have failed to receive their new obligatory licences from the  Security Industry Authority. A huge backlog of last minute applications has built up and each applicant must undergo a Criminal Records Bureau check and a passport check (to determine eligibility to work). Unlicensed giards face up to six months in prison and a £5,000 fine.

 

GORGEOUS GERRIE 20/03/06
Malcolm Gerrie (former CE of Initial) has set up Gorgeous Entertainment with the backing of Ingenious. It will focus on creating content and programming for lifestyle, factual entertainment, music, events and sports entertainment genres.

 

FRENCH COPYRIGHT LAW PASSED 20/03/06

France's National Assembly has now passed the hotly contested Authors Rights Bill bringing relatively low level penalties for illegal downloading and fileswappimng, NO provision for a blanketlicence for downloading but steep penalties (up to three years in jail and fines of up to E300,000) on those who produce software that enables consumers to circumvent copy restrictions on DVDS and CDs. France needs the law to bring in into line with EU Copyright Directive provisions. Apple are sid to be considering withdrawing their iTunes service from France as the provisions of the new Act will make their position untenable under new inter-operability provisions. The new law, dubbed the Vivendi Universal law by some wags, provides that copy-protection technologies like Apple's FairPlay format and Sony's ATRAC3 must work with competing services and players. Companies that refuse to share all essential information with any rival that requests it would be ordered to do so by a judge, under threat of fines. The law still needs approval from the French Senate and President.

 

WAILER STARTS HIGH COURT ACTION 20/03/06
Aston Barret has begun a High Court action in London against Rita Marley and Universal Records for failing to honour agreements he claims the Wailers made with Bob Marley. The claim is by Barret, former bassist in the Wailers, and the estate of brother Carlton who drummed for the band but was murdered. They joined the band after Peter Tosh and Bunny Livingstone left - the Barrets had already achieved major success with their own band The Upsetters. The law suit claims royalties owed under a 1974 contract with Island Records together with Aston Barret's claims for songwriting royalties on songs he co-wrote with Marley. Whilst the band originally shared equally it is alleged that a new agreement was made in 1976 whereby Marley would take 50% of record royalties and the Wailers (the two Barret brothers) would share the rest although this seems to have been a verbal agreement and that the BArret brothers left the business side of the band to Marley (who was apparently the only signatory to the record deal). Aston is nicknamed 'Family Man' because of the 52 children he has fathered. Marley himself had allegedly fathered children by 9 different mothers. Bob Marley has spent 713 weeks in the UK charts with singles and albums and has sold at least 50 million albums worldwide. Legend sold 10 million copies in the US alone. Marley died in 1981 aged 36.

 

UK LABELS ON MISSION TO INDIA 20/03/06
The Association of Independent Music, in association with UK Trade & Investment, is to take a delegation of UK music companies to Mumbai and Chennai, India to develop inroads to what has become the world’s 4th largest world economy in terms of purchasing power parity, with a

population of over 1 billion. The delegation includes Assi Enterprises, BHX Management, Chevstar Records, Concept Music, DDA Consulting, Goodmedia Ltd, Karmasound, Meem Music, Network International, Sheridans, Smekkleysa and Stepen Music. Minister for Trade & Investment, Ian Pearson MP said; "This mission is a continuation of our identification and development of opportunities for the British Music Industry around the world. With India, having a music loving public and a burgeoning industry, it is wonderful that we can help British companies present their artists and music to them." 

 

NOTORIOUS B.I.G ALBUM PULLED FROM SALE 20/03/06
A US judge has halted sales of late rapper Notorious B.I.G.'s 1994 album "Ready to Die" after a jury decided the title song used part of an Ohio Players tune without permission. Last week a Nashville jury awarded $4.2 million in punitive and direct damages to the two music companies (Bridgeport Music and Westbound Records) that own rights to Ohio Players recordings. The sales ban imposed by U.S. District Judge Todd Campbell affects the album and the title song in any form, including Internet downloads and radio play. It was unclear when or how the ban would take effect. The jury decided that Bad Boy Entertainment and executive producer Sean "Puff Diddy" Combs illegally used a part of the Ohio Players' 1992 song "Singing in The Morning". Westbound and Bridgeport have alreday had a well known 2004 legal victory against No Limit Films and Dimension Films after NWA sampled George Clinton and Funkadelic.

 

BOWEN NEW COO OF SONYBMG 20/03/06

Sony BMG have named Tim Bowen as their new Chief Operating Officer. He will be based in New York. Polydor have named Karen Simmonds as their new general manager of marketing

 

SIA DEADLINE LOOMS 16/03/06
Security Industry Authority (SIA)
Investigators have carried out a nationwide series of visits to directors and managers of 13 close protection companies as part of the SIA 'Operation Pre-Alert'. Compulsory licensing is introduced on 20 March 2006. During the visits directors were asked to read and sign a compliance notice acknowledging that they understood the terms of the Private Security Industry Act 2001, their obligations under the Act, and the consequences for them and their staff for non-compliance with the law. After 20 March anyone operating as, or supplying, unlicensed contracted security operatives in the designated areas (including Close Protection Operatives) without an SIA licence commits an offence under the Private Security Industry Act 2001. The penalties for offences under the Private Security Industry Act 2001 are potentially severe – up to £5,000 fine and / or six months imprisonment. A charge of supplying unlicensed operatives can be tried at Crown Court where there is no limit to the amount of a fine and a sentence of imprisonment of up to five years can be given. To date, 682 people now hold the approved SIA Close Protection qualification making them eligible to apply for an SIA licence; however, only 274 people have so far applied for their licence.

INTERNET SALES TO GROW TO $10 BILLION BY 2010 16/03/06
In-Stat projects that global revenues for all online music sales (digital and physical) will grow from $1.5B in 2005 to $10.7B by 2010. The report suggests that revenues from a la carte downloading and subscriptions will exceed revenues from online CD sales as early as next year. Offline sales, however, will still hold the lion's share of the market (around two-thirds) and online piracy will continue to significantly impact on sales. The In-Stat study also found that 64% of people who had downloaded music had paid to do so (with the heavier downloaders spending $10-20 each in the past year). iTunes, predictably, dominated but not as significantly as it has in the past. Some 53% of legal downloaders used the service.

Source  Five Eight Magazine.

CHILLI PEPPERS AND KAYNE HEAD UP LOLLAPALOOZA 16/03/06
The Red Hot Chili Peppers, Kanye West and Wilco lead the lineup for this summer's Lollapalooza, which will be held Aug. 4-6 in Chicago's Grant Park. The event will also feature Common, Manu Chao, Queens Of The Stone Age, the Shins, Death Cab For Cutie, Matisyahu, Ween and Jack White's new band, the Raconteurs the Lollapalooza co-founder Perry Farrell has announced. And at the SXSW Festival in Texas Morrisey let it be known that he had indeed been offered 'millions of dollars' to reform The Smiths but just couldnt do the deed. In particular he said that the Coachella Festival were looking for the reformed band to headline. Morrissey is part of a large Britih contingent at the SXSW festival which runs March 10th to March 19th and features over 1300 live acts in Austin, the 'live music capital of the world'.

CHART FIXING FRIENDS GET BAND BANNED 16/03/06
Friends and family of The Modern have got the band banned from the UK's charts after bulk buying the band's new new single to force it up the charts. Whilst a number one in the UK needs 80,000+ sales in one week, to get to number 5 needs only 17,000 on average and to get to 10 needs only 10,000.  To get to number 20 just 5,000 units need to be sold. The Official Charts Company noted bulk buys of hundreds of copies of Industry which had provisionally pushed the band up to number 13. Unluckily for the Modern some 85% of the purchase could be tracked back to a 'handful' of individuals using hmv.co.uk.  The band, signed to Mercury, have confirmed that one 'over helpful' family friend had brought 140 copies and two other relatives and brought 50 copies each as give aways. The band's previous single peaked at 35. The band said they understood that the integrity of the charts had to be maintained.

MAJORS FACE MORE SCRUTINTY OVER ALLEGED ILLEGAL ACTIVITIES 14/03/06
With payola allegations being levelled at the majors by both New York attorney general, Eliot Spitzer and the federal government attorney general Alberto Gonzales, fall out from the SonyBMG Rootkit fiasco as well as a recent settlement 2002 court by the majors for for price fixing CDs,  a law suit has  been filed in the federal courts in the US alleging that the major labels have fixed download prices:  The suit from law leading class action firm firm Lerach Coughlin Stoia Geller Rudman & Robbins also alleges that the record labels sought to shut down online music pioneer Napster at the same time they were introducing their own joint ventures to sell online music: MusicNet and Pressplay "were not serious commercial ventures, but rather attempts to occupy the market with frustrating and ineffectual services in order to head off viable online music competitors from forming and gaining popularity after Napster's demise," according to the suit. The allegations extend to the majors conspired to hold back the growth of the digital music market to protect the high-margin CD side of their business. The majors are also accused of conspiring to set the wholesale price of digital tracks, getting up to $0.70 per $0.99 track. The Recording Industry Association of America (RIAA) is named as a co-conspirator in the suit.  A European investigation into download pricing is also expected in the near future. http://billboardradiomonitor.com/radiomonitor/news/business/sales_marketing/article_display.jsp?vnu_content_id=1002157462

KILLERS' EX-MANAGER LAUNCHES SUIT 14/03/06
The former manager of the Killers, famous for Mr Brightside amongst other big hits, has filed a $16 million federal lawsuit against the band alleging breach of contract. Braden Merrick, of Los Angeles, claims in the suit filed in the US District Court in Las Vegas that he was fired last May, once the Las Vegas-based band hit the bigtime. His lawyer, Howard King said: "He's entitled to a percentage of their income for his services as a manager and producer." His contract was to have run through 2007. It appears that the two sides tried and failed to negotiate a settlement before the lawsuit was filed. The band have now asked a federal judge to dismiss the claim.

MUSICAL CHAIRS 14/03/06
Jordan Schur is leaving his post as president of Geffen Records to set up his new label –  Suretone Records in a joint venture with Interscope: Sony BMG UK has set up Fever Media as a joint venture with David Mortimer (former creative head of factual entertainment at the BBC) and Richard Hopkins (former Creative head of format entertainment at the BBC). Virgin Entertainment Group, North America, appoints Dee McLaughlin to the post of director of brand marketing and Wayne Scholes to the role of director of strategic marketing: Bill Crandall is named as the new editor-in-chief of AOL Music: Universal Motown Records Group promotes Kirk Harding to the role of senior VP of international. Black Sabbath, Blondie, Miles Davis, Lynyrd Skynyrd, the Sex Pistols and Herb Alpert and Jerry Moss (co-founders of A&M Records) were all 'ushered into' the Rock and Roll Hall of Fame but its bad news for rapper Young Jeezy as he is arrested in connection with an alleged shooting in Miami.

ASCAP COLLECTIONS UP 14/03/06
US collection agency ASCAP reports that it collected $749 million in royalties last year. This was up $50M (6%) from 2004. Payments to members stood at $645M

FRENCH GOVERNMENT HOLD THE LINE ON DOWNLOADING 13/03/06
MPs from France's ruling conservative party have blocked a move to legalise internet downloading of movie and music files. The vote signalled a victory for the government as it pushes through a Bill that would outlaw the downloading music files as well the breaking of copyright protection on DVDs or CDs. MPs from the Socialist, Communist, Green and UDF parties walked out in protest ahead of the vote, allowing it to be adopted nearly unanimously. The vote scrapped an revision in the Bill which would have upheld a text adopted by Parliament last December to legalise downloading in return for internet users paying a de facto flat tax of eight to €12 a month that would go to pay artists' royalties. Opposition MPs and even some UMP parliamentarians, backed by consumer groups, had argued that such a tax was the best way to remunerate copyright holders, especially as an estimated eight to tenmillion French people download copyrighted material currently without paying a cent. But the government, which is trying to bring French law into line with a 2001 EU directive on copyright on digital media, fiercely opposed the idea and used every means in its power to see it quashed. Debate over the rest of the digital copyright Bill before Parliament is to continue, with a vote on its adoption expected March 15th.

HMV REJECTS NEW OFFER 13/03/06
HMV has rejected a 210p a share bid from private equity firm Permira as 'derisory'. This is Permira'ss econd bid for the company  and values the company at £847m. Permira's original bid at 190p per share  valued the company at £762M) was rejected at the start of February. It returned to the table with a bid of £802M a fortnight ago, but upped it again last week. HMV has stated that this latest bid had greatly undervalued the company.

GLASTONBURY COVERAGE NOMINATED FOR BULLDOG - THE BEST OF BRITISH TV 12/03/06
If you dont know already, I am really pleased to tell you that Glastonbury 2005 has been nominated in the Live Event category for Televisual BULLDOG Award. We are up against stiff competition including Live8, The Ashes and Wimbledon. The citation reads "coverage of the rain lashed mud-caked but defiantly upbeat Glastonbury Fetsival was shown on BBC2, BBC3 and BBC4 this year, but only after BBC OB crews had fought to rescue the coverage from torrential thunderstorms that struck overnight on thursday. BBC3 tansmitted live from 7pm to 2am each night and viewers could watch any of five stages using the red button. Ratings from the event peaked at 2.1 million viewers on BBC2 in Friday 24th June."    People who work in UK audio visual production can vote for the Bulldogs. Televisual have a special Bulldogs wesbite and voters can vote online: 

U2 POSTPONE END OF VERTIGO TOUR 09/03/06
U2 have postponed the final 10 dates of its Vertigo '06 tour in Australia, New Zealand, Japan and Hawaii. A joint statement by promoters The Next Adventure (TNA) and Michael Coppel Presents (MCP) blamed it on the illness of an immediate family member. Additional details were not given. All the shows except for U2's date in Adelaide were sold out. It was to have been the band's first visit to Australia and New Zealand in eight years. Kanye West, who was to open for U2 in those countries, will go ahead with his own six shows

MUSIC REVENUES GROW 09/03/06
The MCPS-PRS Alliance reports that in 2005 it redistributed £472M to its 40,000 members (an increase of 9% from 2004). Revenues in mechanicals rose 13% while public performance went up 4%. Broadcasting also went up 4% and international rose 9%. Another new report suggests that mobile content – including music, games and video – is expected to top $43B globally by 2010 - this is according to iSuppli projections. The sector generated $5.2B in 2004. It suggests that music content will be the key driver and the fastest-growing content segment. Global revenues from recorded music content topped $3.8B last year based on industry figures.

SPITZER LAUNCHES PAYOLA SUIT 09/03/06
New York attorney general Eliot Spitzer is bringing a lawsuit against Entercom Communications on payola charges. The broadcaster is accused of “accepting secret payments in exchange for airtime". A2IM (the trade body representing the US indies) has joined the payola debate and used it to call on the FCC to 'level the playing field' for small record companies. It feels that alleged payola practices between the majors and the broadcasters are locking the indies out. http://www.billboard.biz

DRONES WIN INAUGURAL AUSSIE MUSIC AWARD 09/03/06
The Drones have won the first Australian Music Prize, winning $25,000 and Daddy Yankee is the big winner at the ASCAP Latin Music Awards. Metallica will induct Black Sabbath into the Rock 'n' Roll Hall Of Fame.

'WORST LAW EVER' HITS YOUNG MUSICIANS IN JAPAN 08/03/06
A law prohibiting the re-sale of any elecrical appliance made before 2001 without a new expensive product safety for electrical appliances ('PSE') check has been branded the 'worst law ever' by the usually restrained Japanese press. The law, meant to prevent the sale of unsafe kettles and toasters has been found to apply to numerous other electrical items - including electrical instruments. The sale of second hand instruments in Japan, like elsewhere, is vital to young musicians and 74,500 enraged musicians and tradespeople, led by Oscar winning composer Ryuichi Kakamaoto, have petitioned government asking that the law be toned down and the trade in old instruments, amplifiers, recording equipment and synthesisres be allowed to continue unmolested. Dealers who sell instruments without the new PSE seal are liable to up to one year in prison and £500,000 fine (E710,000). The law was actually passed in 2001 but as the Government didn't publicise the law most second hand dealers had no idea about the provisions which are now about to be implemented. The responsible government body, the Department for Economy, Trade and Industry (Meti) admitted it had printed but then failed to distribute information pamphlets and now was suffering under  the strain of hundreds of outraged calls each day.  Now why does this story seem so familiar ..... 

PEOPLE IN MUSIC 08/03/06
Michele J. Hooper has been elected onto Warner Music Group's board as an independent director: Michael Reinert is named as the new executive VP of business and legal affairs for Universal Motown Records Group and the English National Opera names Edward Gardner as its new music director. And RIP Mail Blues superstar Ali Farka Toure who has died in his late 60s. Finally For a very interesting iterview with Rob Stringer, CEO of SonyBMG in the UK, see http://news.independent.co.uk/media/article349444.ece.

ROD MUST PAY UP FOR CANCELLED SHOW 08/03/06
A federal judge has ordered Rod Stewart to pay a Las Vegas casino more than $3 million for a canceled show in December 2000. U.S. District Judge Larry Hicks ordered the Stewart's lawyers pay an additional $153,483 in contempt-of-court sanctions and legal costs for failing to turn over information to lawyers for Harrah's Entertainment before trial last year. Stewart's lawyer said Stewart intends to appeal the verdict and jury award. Judge Hicks' order is for repayment of the $2 million advance he was paid by the Rio hotel-casino and more than $1 million in interest, penalties and attorney fees. Stewart and his lawyers are jointly responsible for paying the sanctions. The judgment resulted a federal jury finding that Stewart should not have kept an advance he received for the 2000 New Year's weekend show that he said he was unable to perform because of throat surgery several months earlier.source: www.billboard.biz (http://www.billboard.biz/bb/biz/newsroom/legal_management/article_display.jsp?vnu_content_id=1002116948)

EX-WEMBLEY CHIEF APPEALS AGAINST JAIL SENTENCE 08/03/06
Nigel Potter, the former chief of Wembley who was jailed for three years for fraud in the USA, is to appeal his sentence. Potter was convicted and jailed without bail last year pending any appeal. The charges related to the installation of fruit machines at a US greyhound track. Potter has been denied a place at an open jail as he is deemed to be a "flight risk". Potter and his family maintain his innocence.

FRENCH COPYRIGHT ROW RUMBLES ON 08/03/06
The French government, caught off guard when French members of parliament voted to legalise downloading in return for a monthly licence fee of E8-E12 has reportedly blocked a vote and introduce a new revised bill. Prime Minister Dominique de Villepin's UMP government had resisted calls for the new licence which supporters say reflects the new way in which consumers will 'buy' music in the future. However a debate is scheduled before a new vote on March 14. The government is opposed by a majority of MPS including members of its own party who want to adopt a more oen style of licencing for downloading. The government has already dramatically reduced penalities for illegal downloading in the new bill - penalties for illegal downloading would now range between E38 and E150 rather than E300,000 and opposition MPS are also asking that downloads are made available on all platforms (rather than just, say, iTunes) and for all devices to allow for proper competition and a fair deal for consumers. However the one key amendments called for by the Bill’s opponents has not been put in  - the new draft does not contain provisions for the ‘global licence’ the fee of a few euros that would have entitled tconsumers to unlimited internet downloads of copyright material.
see http://www.todayonline.com/articles/105150.asp

SEATTLE HARD-CORE GROUP BLAMED FOR VIOLENCE 08/03/06
The Seattle Times reports that Friends Stand United (FSU) who started out as the 'good guys', a loose-knit group of young men who acted as protectors of those who frequented Boston's often-raucous punk scene in the 1980s, are gaining a reputation for beatings and intimidating behavior and is being blamed for driving a violent wedge into the city's hardcore music scene. One club owner, who prides himself on running a safe venue, said that until a year ago hardcore shows were fun, peaceful gatherings. Tracy Moody, owner of Studio Seven, an all-ages venue in the city's Sodo neighborhood has barred FSU members from his club after bar patrons were assaulted in November. The Seattle Times also reports that Police are starting to take notice, too, blaming the group of young men for at least three assaults in recent months. On February 25, officers arrested a handful of FSU members who were standing outside Studio Seven, most for carrying illegal weapons including brass knuckles, knives and a handgun. The emergence of Seattle's FSU has brought angst to some in Seattle's larger music community. They worry the group's presence at all-ages hardcore shows could provoke a backlash nearly four years after the city repealed its Teen Dance Ordinance, which barred those over and under 21 from mixing at music venues.see http://seattletimes.nwsource.com/html/localnews/2002848946_fsu07m.html

COPYRIGHT AWARENESS WEEK LAUNCHED IN USA 08/03/06
Music stations would be silenced if copyright protection didn't exist, say Grammy Award winner John Legend and other top recording artists and songwritewrs. "There'd be no music, no CDs, no cassettes, no vinyl, no DVDs, no MP3s," he says in a public service announcement being played on stations across the country during Copyright Awareness Week which runs from March 6th to March 10th. The US Copyright Society which sponsors the week is actively involved in promoting education on copyright in schools and teachers who are interested in participating are asked to teach students basic concepts of copyright and encourage an understanding of and respect for the rights of creative people provided by federal law. Other supporters of the week include ASCAP, BMI, the American Intellectual Property Law Association, The Harry Fox Agency, Time-Warner, EMI Music Publishing, Peermusic and Shapiro Bernstein Music Publishers. see http://www.csusa.org/ 

SECURITY COMPANIES POISED TO MISS MARCH DEADLINES 08/03/06
There is likely to be a shortage of licensed security guards after the March 20th 2006 licensing deadline reports Securitypark.net.  After 20th March 2006 anyone operating without a licence will be committing a criminal offence. Many security companies have not yet licensed either their company or their guarding staff. The security industry has had since 2001 when the Private Security Industry Act was passed to prepare itself, and the regulatory body, the Security Industry Authority (SIA), has been accepting licence applications since April 2005. To date, the SIA Inspectors have visited 52 companies to warn the directors of companies who it considered would not be in a position to supply their customers with enough licensed security staff after 20th March. A flood of applications were submitted to the SIA during December 2005 and January 2006.http://www.securitypark.co.uk

PUB CHAIN SEEKS JUDICIAL REVIEW OF COUNCIL LICENSING POLICY 08/03/06
JD Wetherspoon is launching a High Court challenge over the powers of local licensing authorities to refuse to extend opening hours due to fears of crime and binge drinking. The company is seeking judicial review of a refusal of Guildford Borough Council's licensing sub-committee to extend late-night drinking hours for its presmises in Guildford. Other applications in the area for longer drinking hours have also been rejected. The sub-committee acted after Surrey Police objected to an extra three hours drinking time, saying the concentration of late-night drinking premises in the Bridge Street area was already causing "serious problems of crime and disorder or public nuisance". The police objection dealt a knock-out blow to the Wetherspoon application because the local authority had adopted a "cumulative impact" policy for Bridge Street and that no new licences will be granted for the area, or longer opening hours allowed, unless an applicant can show that opening its premises for longer will not increase the problem of crime and disorder already being caused locally by the number of pubs and clubs and other licensed premises. Wetherspoon's legal team are arguing that the Guildford cumulative impact policy "undermines the scheme of the Act and is therefore unlawful". Guildford Council lawyers say their policy is both lawful and in line with Government guidelines. Also this week Westminster City Council has announced that 28 licensing appeals have been withdrawn by operators after consultation. This follows news that four appeals against the decision taken by the council's Licensing Sub-Committee were lost. Three were dismissed with costs awarded to the council and one appeal was allowed with no order as to costs. The three cases were in the council's West End 'stress area'. This was created by the WCC as it believes that the area is saturated already with premises that serve alcohol late into the night.  But it should be noted that in October 2005 Mr Justice Richards found that the Licensing Policies of Canterbury City Council and forty other local authorities were illegal . Central to the case was that Canterbury's Licensing Policy was far too prescriptive, set broad blanket conditions on licensed businesses and misled those applying for licences about what they had to do to be granted a licence - in effect the case was that the Council's Licensing Policy was in breach of the provisions of the Licensing Act 2003.  Source www.24dash.com and www.musiclawupdates.com Archive October 2005.

CRACKBERRY ADDICTS ONLINE AGAIN 06/03/06
Blackberry addicts have been spared the awful trauma of a service shutdown after a patent disoute between the makers of the device, Research in Motion (RIM) and sofware company NTP came to a settlement over future use of the patents oned by NTP but vital to Blackberries operation. Tbe Crackbery addicts might be interested to know that the settlement was for the sum of $612.5 million (£350 million) which ends RIM's five year wrangle with NTP.

SEMTEX EXPLODES AT MADONNAS NEW NAME 06/03/06
The Semtin Glassworks in Czech Republic, now renamed Explosia, has taken exception to one of Madonna's new ventures. The Czech company own the name Semtex and are planning legal action after Madonna announced she was launching a new fashion line called Semtex Girls - the brand ethos was described by the singer as a girl who is 'dynamic, who explodes, and who doesn't take no for an answer. We shall have to see if Madonna has to take a 'no' from Explosia.

MUSICWEEK LAUNCH CAMPAIGN TO EXTEND COPYRIGT TERM 06/03/06
UK trade Magazine Music Week led its front page on the 4th March 2906 with the headline ‘Time for Action’ launching a major campaign under the ‘Extend The Term!’ banner, calling on the UK Government to take action over extending the term of copyright for sound recordings. At the moment in the UK the term of copyright protection for literary, dramatic, musical and artistic works along with Films is seventy (70) years from the death of the author or last surviving author pursuant to the provisions of the Copyright Designs and Patents Act 1988. However the same Act provides that the copyright in sound recordings lasts for only fifty (50) years from the end of the calendar year in which the recording is made or released. This is what is agitating the British Phonographic Industry as it beings to see some very valuable copyrights (such as early sound recordings from Elvis Presley and Cliff Richard) enter the public domain. But this is not just a UK issue as terms of copyright are, in general terms, harmonised across the European Community and the recording industry is, through the IFPI,  seeking extension in copyright term in sound recordings on a Europe wide basis. The UK Government has already responded to industry calls by appointing Andrew Gowers, formerly editor of the Financial Times, to review issues. In an interesting note buried away in the MW article, the MMF ( Music Managers Forum) are reported to be starting to call for a fairer system of 'sharing' in copyright, here with MMF Committee Chairman David Stopps asking for an automatic reversion in copyright in sound recordings to performers / recording artists after 25 years along with an increase in term in performers rights. The APRIL edition of www.musiclawupdates.com will contain an article on this subject by Ben Challis asking whether trhe time has come to completely review how record companies contract with, account to and share revenues with artists in this digital age.

FRENCH PARLIAMENT TO REVISIT P2P LAWS 06/03/06
French MPs will vote again this week on whether or not to legalise P2Ps. In December, MPs voted in favour of letting users download as much as they want in exchange for a monthly levy under a global licence structure. The entertainment industries reacted angrily and have been lobbying heavily to prevent this proposal becoming law in France reports Five Eight magazine.  The French MPs vote was a shock to government who had been calling for tougher fines and jail sentences for file-sharers. Consumers, artists and the culture industries are split on this issue with some 13,000 musicians signing a petition in favour of the global licence system and growing consumer body support for the decriminalising of file-sharers. The government has been consulting with artists, consumers and the entertainment industries to consider how best to move forward. If French MPs vote in favour of the global licence model, France will become the first country to legalise file-sharing:
http://news.bbc.co.uk/1/hi/technology/4770458.stm

V SOLD OUT IN 3 HOURS 06/03/06
The V Festival in the UK has sold out in three hours. A total of 130,000 tickets were 'snapped up' for the festival which takes places in Chelmsford and Staffordshire on 19th-20th August.

RECORD LABELS PUSH FOR COPYRIGHT EXTENSION 04/03/06
UK trade magazine Music Week led its front page on the 4th March 2006 with the headline ‘Time for Action’ launching a major campaign under the ‘Extend The Term!’ banner, calling on the UK Government to take action over extending the term of copyright for sound recordings. At the moment in the UK the term of copyright protection for literary, dramatic, musical and artistic works along with Films is seventy (70) years from the death of the author or last surviving author but the copyright in sound recordings lasts for only fifty (50) years from the end of the calendar year in which the recording is made or released. This is what is agitating the British Phonographic Industry as it beings to see some very valuable copyrights (such as early sound recordings from Elvis Presley and Cliff Richard) enter the public domain. This is not just a UK issue as terms of copyright are, in general terms, harmonised across the European Community and the recording industry is seeking extension in copyright term in sound recordings on a Europe wide basis. The UK Government has already responded to industry calls by appointing Andrew Gowers, formerly editor of the Financial Times, to review issues. Look out for an ARTICLE on Musiclawupdates.com in the near future looking at the pros and cons of the proposed extension. Not everyone supports the record labels position and not everyone thinks it will be a good idea.

COHEN'S FORMER MANAGER ORDERED TO PAY $9.5 MILLION 04/03/06
Leonard Cohen's
former manager of 17 years Kelly Lynch has been ordered to pay over $9.5 million (£5.5 million). She failed to respond to allegations that she had taken funds from the singer songwriter's retirement savings and a judgment in default was obtained by Cohen's lawyer, Scott Edleman. It remains to be seen how the court order will be enforced.

UNIVERSAL PROFITS UP 03/03/06
Universal Music Group
reports earnings of E480 million in 2005 – which is up 18.8% from -language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA">COHEN'S FORMER MANAGER ORDERED TO PAY $9.5 MILLION 04/03/06
Leonard Cohen's
former manager of 17 years Kelly Lynch has been ordered to pay over $9.5 million (£5.5 million). She failed to respond to allegations that she had taken funds from the singer songwriter's retirement savings and a judgment in default was obtained by Cohen's lawyer, Scott Edleman. It remains to be seen how the court order will be enforced.

UNIVERSAL PROFITS UP 03/03/06
Universal Music Group
reports earnings of E480 million in 2005 – which is up 18.8% from 2004. The company's revenues were E4.89B (up 1.5% from the previous year). It was the strong performance of the music and games arms that helped drive parent company Vivendi Universal's pre-tax profits up to E3.9B (based on revenues of E19.5B). Universal Music's increased earnings were attributed to growing CD/digital sales and cost savings from restructuring. 

Source:  FiveEight magazine

GLITTER GETS 3 YEARS 03/03/06
British glam rocker Gary Glitter (real name Paul Gadd) has been sentenced to three years imprisonment by a Vietnamese court on charges of sexually abusing two twelve year old girls at his Villa in Vietnam. In scenes of chaos the singer shouted out that the charges were a 'conspiracy' by two British newspapers before being escorted away by guards. Already on remand, Glieer could well be free within tweleve months on parole when he will probably be deported back to the UK.    

ABBEY ROAD GIG LIGHTS UP LICENSING LIABILITY OF RECORDING STUDIOS 03/03/06
Recording studios look set to become the latest unintended casualties of the Licensing Act 2003 as local authorites warn they must get clearance costing hundreds of pounds a year to let people play live music on their premises. The problem came to light following a gig performed by Coldplay at Abbey Road studios this month, attended by guests and BBC Radio 2 competition winners but not members of he public. Under the Act, if entertainment is provided for profit or is put on in public the venue must have a licence. Westminster City Council’s legal team believes that this show should have been licensed even though tickets were not sold. A statement from the council’s lawyers said: “If Coldplay had simply recorded some music at Abbey Road for later transmission by the BBC, it can safely be assumed that Abbey Road would be doing it for consideration and with a view to profit. Even if Abbey Road allowed the studio to be used free of charge that would not avoid the fact that the studio would need to be licensed for any other recording sessions carried out on a commercial basis”. If correct this bizarre extension of the Act would be likely to affect all recording studios in the area and could influence the policies of other local authorities. The Stage reports that licensing lawyer Dale Collins from solicitors Osborne Clarke, who has advised Arts Council England on the Act, claimed Westminster’s interpretation of the law was correct and that competition winners could be held to be a section of 'the public' and adds “even if it is determined not to be public, as it appears the BBC hired the studio this suggests that the event organisers paid those providing the entertainment facility and hence falls within the catch-all provision of providing the entertainment ‘for consideration and with a view to profit.’ So they’re caught one way or the other.” However, the BBC has escaped a fine after Westminster Council decided not to prosecute, accepting that it was a "genuine oversight" on the broadcaster's part

http://www.thestage.co.uk/news/newsstory.php/11743/coldplay-gig-raises-licensing-issues

POLICE AND HOSPITALS STRETCHED BY NEW UK DRINKING REGIME 03/03/06
Police and hospital staff have spoken of how the new longer pub licensing hours have stretched resources. Police told the BBC Wales' Week In Week Out programme that officers were working longer and harder shifts to ensure a high visibility presence and public safety. But there was concern about what happens when extra money provided for a transition period runs out. The Royal College of Physicians said extended opening hours also had a knock-on effect for casualty units. Extra funding has been given to police to help see them through the birthing period of the new laws, helping to keep more officers on the streets for the longer hourshttp://news.bbc.co.uk/2/hi/uk_news/wales/4757768.stm

PETE DOHERTY ARRESTED AGAIN 03/03/06
Having escaped a prison sentence for previous drugs offences Babyshambles frontman Pete Doherty has again been arrested for drug and driving offences. The troubled singer was arrested on monday by police in Birmingham. Doherty is currently subject of a Community Order witha  drug addiction treatment requirement. It is also reported that Doherty is being treated for depression at Homerton Hospital in East London.

-----------------------------------------------------------------------------------------------------------------------------------

News Archive. Simply click on a month to view.

February 2006

January 2006

December 2005

November 2005

October 2005

September 2005

August 2005

July 2005

June 2005

May 2005

April 2005

March 2005

February 2005

January 2005

December 2004

November 2004

October 2004

September 2004

August 2004

July 2004

June 2004

May 2004

April 2004

March 2004

February 2004

January 2004

Previous News Archive