The Scoop: According to a report from Entertainment Law Digest, European label Earache Records is suing Century Media, stating that CM owes them $250,000 in licensing fees, and that they’ve failed to release Earache’s back catalog, which was reportedly a stipulation when the two companies singed a three-year distribution contract just overe a year ago. You can check out a full report on the case here, and an excerpt below.
“‘Without each album being released in the U.S. during the term of the agreement, it is impossible for Earache Records to earn royalties in the U.S. market (in this case, for several years), and fulfill its obligations to its artists,’ the 17-page lawsuit states. (Parentheses in complaint.)
“To duck two advance payments of $125,000, Century Family’s lawyers sent the British label a letter that falsely accused it of breaching the licensing agreement, the complaint states. Earache calls that a ‘transparent pretext’ for delaying payment.
“As well as defaulting on the fees, Century Family allegedly used album artwork and set release dates without Earache’s approval. The U.S. company failed to account for royalties in a timely manner, Earache adds.”
The Question: What do you think of the situation? Do you think Century Media is in the wrong? Let us know in the comments below!