A multi-million dollar suit filed early this week claims that the company knowingly miscalculated and shortchanged foreign royalties due their artists under a uniform provision in their contracts. Spearheading the legal proceedings is hair metal elder Firehouse (Michael Foster, William Leverty, Perry Richardson and C.J. Snare), who filed case in Manhattan State Supreme Court on Monday.
According to court papers, Sony routinely deducts 150 percent of
the of the foreign value added tax from the gross royalty base
which the company uses to calculate royalties. The company has also
been accused of providing artist and their management with phony
royalties statements which undervalue the amount due artists --
some of whom have worked under the Sony banner since 1965. (Brandon
Barber)
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