May 26, 2005

Missed This: Music Club Suit Settlement Causing Unrest [5:09 pm]

Static Builds Over Music Club Accord [pdf]

Since becoming a federal class action, the suit has quietly expanded to include thousands of songwriters and hundreds of millions of dollars in disputed revenue. Now a proposed settlement has many music publishers up in arms, claiming that it will permanently disadvantage composers.

If approved, the settlement will no longer require that Columbia House and BMG Direct — best known for sending listeners 12 CDs for the price of one — seek permission to distribute copyrighted songs. Instead, a new Internet-based system would give songwriters 30 days to object before the license is automatically granted.

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