C|Net has an article today titled, Artists to music labels: Where's our Napster money?
You know, all things considered, the word 'Napster' in that headline is probably redundant.
Jay Rosenthal, legal counsel for the Recording Artists Coalition, a group representing the interests of music artists said that the labels have told him that they are trying to decide how to divvy up the money and have been sending payments for a while. He's skeptical to say the least.
"If anything has been paid so far, it has been minimal," Rosenthal said. "The labels are always going to try to hide the money or use some self-serving formula when they finally get around to paying the artists."
But a source within the music industry said that the talent managers aren't looking at the realities.
First, who could deny that the Napster and Kazaa cases, which lasted years, didn't run up massive legal bills, the source asked. Also consider the "inordinate amount of time" it takes to collect the money and figure out which artist's music was infringed, the source said. He added that the labels must split the money between scores of performers.
"The lawyers get their cut first," said the source. "Then the money has to be split among hundreds of different artists at each of the labels."
Sounds to me like the "source" just proved Rosenthal's point: "The labels are always going to try to hide the money or use some self-serving formula [...]" Hands up, anyone who believes that the record labels had to go outside and get hourly-paid lawyers instead of using their own salaried legal departments. 95% of their "legal costs" exist only as internal billing fictions.