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Songwriters get hammered by record labels. Again!

Get caught downloading illegally and you could be made to pay anything up to $80,000 per track in compensation. But when record companies sell songs without permission or payment to the writers, they only have to cough up $157.


This really puts a new meaning on the word 'unbelievable'...


In short, the big four record companies in Canada, which coincidentally are the big four record companies in the world, released 300,000 tracks without seeking licenses from the writers or publishers, and without paying royalties.

And, yet more unbelievable... They put aside $50,000,000 in case they ever got found out.

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Well they did get found out and taken to court in a class action. And the court has decided that the record companies have to pay up. Well that should be $24 billion payable to the writers, comparing to how much an illegal downloader has to pay.

But no...

The record companies only have to pay $47 million. LESS than the amount of money they had put aside. So suppose they didn't get caught out. They could have put that $50,000,000 to work earning interest, which of course they have been doing.

But they did get caught, and all they have to do is pay up, and pay $3,000,000 less than their estimate.

At Audio Masterclass we believe that record companies have a right to run an honest business and make an honest profit. But yet again the small guy songwriter gets screwed. Well, at least the writers will get their money now. The ones that didn't die while they were waiting.


By David Mellor Tuesday January 11, 2011

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