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Record Companies Named in Pension Lawsuit

Several music recording companies have been named in a lawsuit for failure to meet pension fund obligations, specifically failing to make pension fund payments from foreign audio stream revenue and foreign and domestic ringback revenue. The American Federation of Musicians of the U.S. and Canada (AFM) maintain an agreement with music recording companies requiring they pay 0.5% of all receipts from digital transmissions, including audio streaming non-permanent downloads and ringbacks, to its contracted musicians. Independent auditors discovered the recording companies had not made the required revenue payments from such sources. Reconciliation of the issue has been attempted outside of court to no end. Payment for all missing revenue owed the AFM Pension Fund, late payment penalties, damages and legal costs are sought in the case.

www.planadviser.com; August 12, 2015.