Major Record Labels Settle $45 M Class Action Suit for Alleged Copyright Infringement

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It’s probably the worst case of hypocrisy. The four major music labels have just settled a class action suit with thousands of unknown artists whose work was used without pay.

The big four record labels, Warner Music, Sony BMG, EMI and Universal Music were named as respondents to a class action suit by independent musicians. Started in 2008, the suit was for alleged copyright infringement by the record labels. The musicians submitted their work, but were put on a “pending” list, which means they are not on the active artist roster.

Still, the record labels used and distributed the work for profit, but the artists did not see a cent from their works. Some were even dated back to the 1980′s, with hundreds of thousands of tracks listed.

Some take the settlement as admission by the record companies that they were guilty of what can be considered music piracy. The record labels argue otherwise, though, with the Canadian Recording Industry Association (a sister organization of the RIAA) saying “The settlement is a compromise of disputed claims and is not an admission of liability or wrongdoing by the record labels.”

It seems the record labels intended to pay the artists, but never got around to actually paying them. And, in the ultimate act of irony, the record labels have long been blocking sharing of music as copyright infringement, even if they themselves have been infringing on others’ work.

Sadly, the lawsuit, nor the settlement thereof, does nothing to the status quo–the record labels still intend to continue selling the music that they have infringed from the “unknown artists.”

Image credit: flickr