In The News

• Sources say former Warner Bros. Records president Phil Quartararo has signed a letter of intent to join EMI Recorded Music as executive VP of North America, reporting to vice chairman David Munns. EMI declined comment.



• On Aug. 15, California Sen. Kevin Murray (D-L.A.) pulled back the state bill he introduced in January that would have repealed the music industry's exemption to the state's "seven-year statute." Instead, he will introduce a legislative package on artists' rights next year that will encompass the seven-year bill, label accounting practices, and artists' health-care and pension benefits. Murray says he withdrew the bill at the request of artists' reps after it was folded into another bill that had an immediate hearing date. The exemption to the statute allows labels to sue artists for undelivered albums at the end of seven years. Artist rep/attorney Jay Cooper called the decision to introduce an amended bill next year "a good idea." The Recording Industry Assn. of America declined comment.



•An auction process for the Napster assets is under way; proposals from qualified bidders are due Aug. 21, and the auction will commence Aug. 27 at U.S. Bankruptcy Court in Delaware. Napster's unsecured-creditors' committee has hired an investment banking firm to drum up increased interest in the assets. The creditors are said to be seeking $25 million. Bertelsmann has already loaned Napster $85 million and in May pledged to bid $8 million to acquire what remains of it. After a management shake-up, the German company's interest in the online service is in doubt.



• The U.K.-based Beggars Group has finalized its 50% acquisition of New York-based Matador Records. In addition to ongoing distribution through Alternative Distribution Alliance, Matador maintains its direct-sales activities with mom-and-pop accounts.