Bill Could Stop Labels from Cheating Artists
A bill aimed at preventing labels from, in effect, cheating artists, is now slated to go before the full Senate for a vote.
Bill SB 1034, introduced by Senator Kevin Murray (D- Los Angeles), zeroes in on the fact that record companies can at the moment get away with under-reporting what they owe artists.
"The obligation of a recording company to accurately account for and to pay royalties earned under a recording artist contract is a fiduciary duty," says some of the wording here.
"Under the current structure, there is no dis-incentive for record companies to properly account for and pay royalties, therefore, bad behavior by companies is rewarded," said Murray in a press release.
"SB 1034 simply makes it law that record companies must accurately report royalties to the artist."