The Recording Industry Assn. of America (RIAA) has stepped into a 14-year lawsuit between legendary producer Phil Spector and the Ronettes, the classic girl group of the '60s. The RIAA has asked the Appellate Court in New York to rule that under the state's "grant of rights" law governing contracts, the Ronettes are not due any royalties from the use of their recordings in films and commercials because when they signed their '60s contracts, they gave up all rights to share in such income.
An RIAA spokeswoman says the amicus curiae (friend-of-the-court) brief was not filed "on behalf of either party." Should the court agree with the RIAA interpretation, however, the Ronettes would not receive any money. "We believed that the New York appellate division interpreted the 'grant of rights' in a manner different from how other jurisdictions would interpret it," the spokeswoman says.
Citing rapid technological developments during the past decades leading to "new and unanticipated uses for sound recordings," the RIAA brief says that "the ability to rely on all-inclusive rights provision is fundamental to the recording industry's ability to operate" and "elucidation of the law in this area is critically important to RIAA members." It adds that the appellate division court's ruling is "flawed" and argues that the law is clear that if an artist (or "grantee") signs a record-company contract, "[without] clear language limiting a grantee's rights, principles of contract law favor granting all rights to the grantee."
In 2000, the New York Supreme Court (similar to a district court in other states) ruled in Greenfield vs. Philles Records et. al. that the old contracts were ambiguous on the issue of third-party and new-use licensing. It also agreed that artists being granted a 50-50 split of such licensing fees is now a common industry practice. The Ronettes were awarded $2.6 million in damages and court costs. Last year, the Appellate Division Court affirmed the decision (Billboard, Nov. 24, 2001). Spector and his lawyers then filed another appeal.
Additionally, the Recording Artists' Coalition has filed an amicus brief supporting the lower court decision that the '63 contract did not authorize Spector to license recordings to third parties not specified in the contract, and that the Ronettes are owed compensatory damages of 50% of licensing revenue.
Oral arguments in the case, which did not include oral presentations by the amicus groups, took place Sept. 5. A ruling is expected this fall.
Ronnie Greenfield filed the lawsuit in 1988 on behalf of herself and the other Ronettes, Estelle Bennett and Nedra Talley Ross. The Ronettes' brief claims that other than a $14,000 advance split by the three in 1963, they have never received any royalties from the sale of their hit recordings.
Greenfield, also known professionally as Ronnie Spector, was briefly married to Phil Spector. In the lawsuit appeal, Phil Spector's lawyers also assert that under a claims release clause in the divorce settlement, Greenfield is not owed any money stemming from the licensing of Ronettes' recordings. As a plaintiff, Greenfield is barred from commenting on ongoing litigation.