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Thread: Sony said they overpaid Carrie and other stars

  1. #1
    Ultimate Carrie Fan clh_hilary's Avatar
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    Post Sony said they overpaid Carrie and other stars

    Sony Music Claims It Overpaid 'American Idol' Stars By $2 Million

    On Tuesday, Sony Music filed a breach-of-contract counterclaim against 19 Recordings, the American Idol label controlled by Core Media Group which houses such stars as Kelly Clarkson, Carrie Underwood and Clay Aiken.

    In new court documents, Sony asserts that it has overpaid at least $2 million in royalties for these star musicians and is demanding recovery of the money.

    Sony's contention comes more than a year after 19 filed a blockbuster lawsuit alleging the systematic robbing of Idol stars through tricky accounting. In a February 2014 lawsuit, 19 took issue with how Sony was treating income from streaming services like Spotify, how Sony was doing the math for television advertising deductions, and how Sony was interpreting bonus royalty escalators when consumers bought tracks off an album from Apple's iTunes.

    Sony Music Fails to Stop 'American Idol' Revenue Lawsuit

    Two weeks ago, a federal judge in New York trimmed the lawsuit -- most consequentially, the royalty escalation claims were rejected as were claims that 19 should have received a share of settlements that Sony won against services facilitating piracy -- but the judge wouldn't disqualify the big claim that Sony's licensing agreements mischaracterize the distribution of music on streaming services as "sales" rather than "broadcasts" or "transmissions." Further, the foreign advertising deductions survived as well.

    Because Sony failed to dismiss the lawsuit, it had to file an Answer, which it did on Tuesday with some quirkiness. For example, Sony denies that over 15 million copies of Kelly Clarkson's album Breakaway have been sold worldwide, and that "Since U Been Gone" has been certified "multi-platinum" by the RIAA.

    Sony has its own math, and besides responding to each of 19's allegations, it's now using the legal tactic that can be best summed up as, "You say we underpaid you. Oh yeah? We actually overpaid you!"

    There are three alleged ways of overpayment. The first deals with compilation albums.

    "The royalty overpayment resulted from the incorrect application of the royalty rate associated with sales of Albums to these sales of Compilation Albums," Sony states. "The royalty rate associated with sales of Records other than Albums should have been applied to these sales of Compilation Albums."

    Clay Aiken: I Haven't Watched 'American Idol' in 10 Years

    Second, Sony claims that it has handed over too much royalties on digital downloads under the agreements concerning Aiken, Clarkson and Underwood. The music giant says it applied a "rate associated with sales of Albums" rather than the "rate associated with sales of Records other than Albums." The allegation appears to reignite examination of how to account for consumers buying individual 99 cent album tracks off of iTunes.

    Finally, Sony says it overpaid 19 an advance for an album from Kellie Pickler, the country music artist who made the Top 6 during the fifth season of Idol. Sony asserts that money paid in December 2011 failed to account for applicable reserves.

    Sony is represented by Jonathan Sperling and Christopher Yeung at Covington & Burling.

    Richard Busch, attorney for 19, said he had no comment until he had a chance to evaluate the new claims.

    Sony Music Claims It Overpaid 'American Idol' Stars By $2 Million | Billboard
    rainbow1, teesharky and lizcarlo like this.

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    Ultimate Carrie Fan Smokyiiis's Avatar
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    ^^Ughhh.....what a mess
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  • #3
    Carrie Guru pklongbeach's Avatar
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    But Sony LOVES Carrie, remember? Why support an artist like Miranda who is not affiliated with Idol when they can wallow in the mire of cutting deals and dismantling agreements with FoxIdol. ??
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    Ultimate Carrie Fan jptexas's Avatar
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    If Sony wants to keep Carrie in their list of clients, they're doing a lousy job. I always had this vision of Carrie being being super loyal to her label, but it seems lately, that loyalty has its limits. Just imagine the labels falling all over themselves to see who could offer Carrie the best deal. Nobody knows what goes on behind all these lawsuits but it doesn't look pretty.
    glenn7, ethelu, lizcarlo and 4 others like this.

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    Girl needs to get on her goodbye shoes, and go... Goooooo, GOOOOOOOOOOOOOOOO. Yeah, yeah, yeah Sony's LOOOWWWWWWWWW

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    Insane Carrie Fan lizcarlo's Avatar
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    "Clarkson and Underwood"(dont know who clay guy is) has worked so hard for this label. What a terrible label. I hope when her contract is expired it goes something to this effect "pretty please with cherry on top stay with our label" grovel and beg to keep her.

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    Quote Originally Posted by lizcarlo View Post
    "Clarkson and Underwood"(dont know who clay guy is) has worked so hard for this label. What a terrible label. I wish Carrie would make them say something like "pretty please with cherry on top stay with our label" grovel and beg to keep her.
    Clay Aiken was either the winner or the runner-up on Season 2 of Idol, I can't even remember anymore, lol. He may have had some early success very shortly after Idol with his record sales, but that was about it. Ruben Studdard was the other guy in the final two that year, and I think Ruben may have been the winner, but not sure.
    lizcarlo likes this.

  • #8
    Insane Carrie Fan lizcarlo's Avatar
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    Quote Originally Posted by Kizmet311 View Post
    Clay Aiken was either the winner or the runner-up on Season 2 of Idol, I can't even remember anymore, lol. He may have had some early success very shortly after Idol with his record sales, but that was about it. Ruben Studdard was the other guy in the final two that year, and I think Ruben may have been the winner, but not sure.
    Thanks.

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    Obsessed Chart Watcher cary78663's Avatar
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    The suit is not against any of the artist and will not impact any of them. This is about money that Sony paid to 19R. Basically its 19R filing a suit where they say Sony underpaid and now Sony filing a counter suit say they actually overpaid.
    JB172 and terilyn like this.

  • #10
    Insane Carrie Fan
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    Quote Originally Posted by Kizmet311 View Post
    Clay Aiken was either the winner or the runner-up on Season 2 of Idol, I can't even remember anymore, lol. He may have had some early success very shortly after Idol with his record sales, but that was about it. Ruben Studdard was the other guy in the final two that year, and I think Ruben may have been the winner, but not sure.
    Ruben was the winner of Season 2. Clay was the runner up.

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    Ultimate Carrie Fan clh_hilary's Avatar
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    Quote Originally Posted by lizcarlo View Post
    "Clarkson and Underwood"(dont know who clay guy is) has worked so hard for this label. What a terrible label. I hope when her contract is expired it goes something to this effect "pretty please with cherry on top stay with our label" grovel and beg to keep her.
    Clay still holds the record for biggest one-week sales for an Idol contestant.

  • #12
    Carrie Guru pklongbeach's Avatar
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    Quote Originally Posted by cary78663 View Post
    The suit is not against any of the artist and will not impact any of them. This is about money that Sony paid to 19R. Basically its 19R filing a suit where they say Sony underpaid and now Sony filing a counter suit say they actually overpaid.
    Yes but Business is about working well together. And that is what makes a difference for an artist like Carrie. Of course she herself has nothing to do with it, its all about suits!!! But she is the product line that gets caught in it.

  • #13
    Obsessed Chart Watcher cary78663's Avatar
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    Quote Originally Posted by pklongbeach View Post
    Yes but Business is about working well together. And that is what makes a difference for an artist like Carrie. Of course she herself has nothing to do with it, its all about suits!!! But she is the product line that gets caught in it.
    Truthfully the only reason Carrie, Kelly, Clay and Kellie are viewed to be in the middle of this is because the media know the they will get a lot more hits if they throw their names in the mix. A story that just says 19R and Sony are suing each other is going to get a lot less attention.

  • #14
    Carrie Guru pklongbeach's Avatar
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    true dat....

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    Carrie Fans Maniac kewlie78189's Avatar
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    wow..not sure what to say to this!

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    Quote Originally Posted by cary78663 View Post
    The suit is not against any of the artist and will not impact any of them. This is about money that Sony paid to 19R. Basically its 19R filing a suit where they say Sony underpaid and now Sony filing a counter suit say they actually overpaid.
    That is exactly what it is, nothing more than two companies seeing who can stick out their chest the furthest.


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