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Songwriters Allege Record Clubs Skimping On Royalty Rates

By Erik Gruenwedel, L.A.
Publication: Billboard Bulletin
Date: Tuesday, February 26 2002
Five songwriters have filed a class action against the two leading record clubs and all five major labels. In the suit-filed Friday in California Superior Court for the County of Los Angeles-composers Leroy Preston, James Griffin, Babette Ory, and Susan and Damion Hardin (former wife and son of the late Tim Hardin) allege that for the past 25 or 30 years, Columbia House Music Club-which is owned by Sony Music Entertainment and AOL Time Warner-and BMG Direct have paid only 75% of the full statutory royalty rate on their compositions and those of 100,000 other songwriters.

The plaintiffs are seeking $100 million in damages. Their attorney, Maxwell Blecher, admits that previous attempts to obtain financial audits of record clubs have not been successful.

At deadline, BMG declined comment; calls to other defendants were not returned.

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