"n Sync Responds To Trans Con/bmg Suits

LOS ANGELES-"N Sync has filed blistering responses to a preliminary injunction motion and lawsuit filed by Trans Continental, its head Louis Pearlman, and BMG Entertainment last month (Billboard, Oct. 23).
While the counterclaim refutes the points made in the original suit and includes a countersuit, the boy band left its vitriol for the response to the preliminary injunction. In the papers filed Nov. 2 in U.S. District Court in Orlando, Fla., the group calls Pearlman, who claims he "assembled" the band, "a con man . . . who has become wealthy at ["N Sync's] expense. They have been cheated at every turn by Pearlman's fraud, manipulation, and breach of fiduciary duty."
The original injunction, which alleged breach of contract and potential trademark infringement, was part of a $150 million suit filed by BMG, Trans Continental, and Pearlman against "N Sync and Zomba. That action stemmed from "N Sync's attempt to move from BMG-owned RCA Records to Zomba-owned Jive Records-which is distributed by BMG-in September.
According to "N Sync's papers, Pearlman did not come up with the group's name-the moniker came from member Justin Timberlake's mother, Lynn Harless. Disputing the trademark infringement claims, the papers say that Pearlman, via a "secret scheme," "obtained a license to use such mark for himself." Pearlman's filing claims Trans Continental is the sole owner of the "N Sync mark in more than 20 countries.
The group also maintains that by signing the band to Germany-based BMG Ariola, Pearlman violated a clause in his contract that stated the band would be signed to a U.S. label within 18 months of the contract's start.
"N Sync's counterclaim states that Pearlman's financial arrangements with the group made it "virtual indentured servants" of Trans Continental.
According to the papers, Pearlman or his entities received 55% of all gross touring revenue, plus 37.5% of the net; 75% of all record royalties and 100% of any advances; 80% of the merchandising; 100% of the music publishing; and 55% of gross celebrity endorsement monies, plus 37.5% of the net from such deals.
"N Sync's new album was slated to come out on RCA this quarter. However, it has now been moved to early 2000 for Jive, depending upon the legal outcomes.
BMG and Trans Continental responded to "N Sync's counterclaim via a joint statement: "This case is about the rule of law and the importance of honoring contracts. The false and inflammatory rhetoric contained in the court papers filed [Nov. 2] have no place in a court of law, where we are confident that the group's exclusive obligations to Trans Continental and BMG will be upheld."