Monday, August 5, 2013

The Turtles Sue SiriusXM

Forty-six years after their hit “Happy Together” topped the pop charts, Flo & Eddie of The Turtles are serenading Sirius XM Radio Inc. with a very different tune: a lawsuit alleging the satellite broadcaster played the group’s songs without permission.

The suit according to wsj.com, was filed in Los Angeles Superior Court last week on behalf of the band’s founding members.  It spotlights one of copyright law’s oddities: federal law protects only recordings made since 1972. 

Recordings made before 1972 are protected under state law, to varying degrees, in a handful of states, according to Henry Gradstein, the Turtles’ lead attorney.

California’s civil code explicitly protects pre-1972 sound recordings against unauthorized duplication until 2047, and state courts have ruled that sound recordings can be protected in a misappropriation, conversion, or unfair competition claim, he said. The suit, which is seeking class action status, is demanding at least $100 million in damages.

A Sirius spokesman declined to comment.

The 1972 rule wasn’t much of an issue in the past since terrestrial radio broadcasters are exempt from paying performance royalties on all sound recordings, no matter when they were made. That’s because recording artists receive significant exposure from airplay that, at least historically, has translated into sales.

But satellite radio companies and digital music services have been obligated to pay performing artists royalties for the digital use of their recordings since 1995, according to federal law, and as these services have amassed listeners, their royalty costs have ballooned.

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