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Sony Described As Aggressive Nuisance As They Try To Gouge Revenue From Karaoke

Sony Described As Aggressive Nuisance As They Try To Gouge Revenue From Karaoke
Sony Described As Aggressive Nuisance As They Try To Gouge Revenue From Karaoke

After being beaten up in their attempts to introduce Copyright legislation Sony/ATV is trying to claw revenue from drunk amateur singers as they perform hit songs in public and embarrass themselves.

According to the Hollywood reporter KTS Karaoke, a CD and DVD manufacturing giant was so fed by Sony claiming that the Company owes them $1.28 billion for 6,715 acts of alleged song infringement. The company decided to drag Sony/ATV Music Publishing into a California federal court for being an aggressive nuisance in the karaoke marketplace.

Now, Sony/ATV, a joint venture that’s co-owned by the estate of Michael Jackson, has travelled halfway across the USA¬† to get its revenge by lodging a legal action in In Nashville, which is known as “Music City”.

Sony is suing KTS for willful copyright infringement. At stake could be a significant share of the karaoke CDs currently on the market as the plaintiff is demanding a recall of the product so they can be turned over and destroyed.

Karaoke means “empty orchestra” in Japanese, but should really be translated as “legal nightmare.”

Sony claims in their lawsuit that “Pursuant to typical synchronisation and product licenses, karaoke companies are required to pay fixing fees and/or administration fees, advances against future royalties, and account and pay royalties based upon the total number of units manufactured, usually on a quarterly basis. The customary rates for physical synchronization licenses are fairly standardized; the rates for product and other licenses vary considerably.”

Both parties agree that KTS isn’t alone on the karaoke supply chain. The details of their operation aren’t spelled out in either of the lawsuits, but we imagine it might go something like this.

Hollywood Reporter claims to avoid paying money to record labels for the use of original recorded music, KTS purchases songs that are re-recorded by musicians other than the original band members. Still, mechanical and synch license fees are due. KTS believes that its suppliers are responsible for attaining these licenses, and that the licenses would cover their own uses. Sony disagrees.

In KTS’ lawsuit two weeks ago, the company alleges that Sony is committing copyright misuse by attempting to collect multiple damage awards on a single work from the upstream producers, the downstream users (bars and restaurants), and KTS, the packager/distributor. KTS believes this alleged bullying “scheme” is unlawful.

Sony, in turn, is holding the position that the manufacturers of karaoke music, “being unrelated, are not jointly and severally liable for copyright infringement with one another and, as such, the separately made recordings appearing on different brands are separate infringements.”

Sony wants damages, an injunction, and as mentioned above, a recall. How this litigation shakes up the karaoke scene remains to be seen, but perhaps a clever future songwriter on Music Row will write an ode about why nobody goes to local bars to belt out old songs anymore, prefering the cheaper option of flying to Japan.

see www.hollywoodreporter.com