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2006-Aug-31: Beatles EMI / Capitol Royalties Lawsuit Update

In December, 2005, Apple Corps (the group representing surviving Beatles Paul McCartney and Ringo Starr as well as the families of George Harrison and John Lennon) launched legal action in the High Court in London against EMI Group and in the Supreme Court in New York against EMI subsidiary Capitol Records claiming that the two record companies used fraudulent schemes to withhold millions of dollars in royalty payments and breached the band's contract. (See December 16, 2005).

In a ruling made August 23 but released this week, New York State Supreme Court Justice Karla Moskowitz denied EMI's request that the fraud and breach of contract suit be thrown out.

The law suit alleges that EMI and Capitol underreported some sales during the late 1990s and also classified copies of Beatles recordings as destroyed or damaged, but then went ahead and sold them. In addition to seeking more than $25 million US in damages, Apple Corps is seeking the rights to the Beatles' master recordings. EMI currently owns the copyright, in perpetuity, to recordings made by the Beatles.

(kindly submitted by PLUGGED correspondent Joan M. Hopkins)


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