As the old adage goes, “it’s lonely at the top,” and as the
800-pound go-rilla sitting on top of the American music biz, the isolation of U
Music’s Doug Morris must rank second only to the Maytag repair man.
As the industry’s largest conglomeration of record labels,
with over a billion $$$ served for two years in a row, Universal has been
guided through some rocky straits by the firm hand and clear vision of Mr.
Morris. The people beneath him must be freakin’ idiots, however, since they
seem to keep making the same old stupid mistakes. Either Morris is aware of
these corporate missteps on his behalf and he approves, or else he’s another
clueless corporate CEO collecting a seven-to-eight-figure paycheck without
really trying all that hard.
First comes the news, courtesy of Billboard magazine, that Universal’s Republic label sent out “cease
and desist” letters to independent retailers selling copies of Amy Winehouse’s
2003 album Frank as an import disc. Evidently the domestic imprint has
plans on releasing the album in November to capitalize on the modest success of
Winehouse’s U.S.
debut, Back To Black, which has moved nearly a million copies – a
success by any standard in the modern age – and they want to keep from losing
any sales to the import version.
Many of the retailers, who the major labels have done little
to support lately, took offense at the letter’s bullying tone. According to Billboard, one portion of the label’s
July 24th letter said “Republic hereby demands that you cease and desist with
any and all distribution and/or exploitation of the album in the U.S.,”
claiming that sales of Frank constitutes an infringement of
Republic's exclusive right to exploit and distribute the artist's recording in
the States.
Billboard also states that “the letter, signed by Universal Republic director of business and legal
affairs Jeffrey Koenig, furthermore asks that all accounts respond within two
days of receiving the letter with a written acknowledgement that they have
ceased selling the import version of the album.” Retailers, not wanting to get
hung up in a lawsuit with U Music, have pretty much all thrown in the towel,
halting sales of Frank rather than fight the monster.
Import albums have not been much of an issue with the labels
since the late-70s/early-80s when the collector’s market was flooded with
British, German, French and Japanese import versions of albums. I don’t know
the specifics, but it seems to me that I remember the labels forcing through
legislation that made it illegal to import an album for which a legitimate U.S. version
was available. If this is, indeed the case, it’s a stupid law and one designed
only to benefit the domestic music biz. As a collector, I often preferred import
versions of albums, which typically were pressed on heavier, better quality
vinyl and had better graphics and sometimes bonus songs.
Unfortunately, the label’s position back in those days made
some sense considering that a lot of European punk and “new wave” artists were
signed to indie labels back in their home countries and the U.S. labels
that signed them wanted to make some bank. These days, however, it’s just an
absurd position considering that the “Four Families” of the recording industry
control over 90% of the music released in the United
States and Europe.
What is Universal losing by retailers selling a few thousand
copies of Winehouse’s Frank, which was released in England by Island,
another U Music imprint? Nothing! They’re simply taking the money out of one
pocket and putting it into another and it’s the beleaguered music stores that
are getting screwed. Personally, if I had a record store I’d go ahead and keep
selling Winehouse’s over-hyped crap and let Universal come after me. If they sued,
I’d counter-sue for interfering with my business. After all, you’re not infringing
on Republic or Universal or Island or
whoever’s right to exploit the album if they haven’t even released it yet!!!
All of which leads us to our second Universal clusterfuck. The label has filed suit against a one Troy Augusto, owner of Roast Beast Music, an eBay seller that trades in used CDs. Evidently, from time to
time, Augusto has been known to sell CDs marked “For Promotional Use Only,”
which has raised the ire of the world’s largest crime family…er, record label.
Rightfully ignoring the label’s “cease and desist” letters, Doug’s legal goons
dropped the hammer on poor Troy,
filing suit and claiming that his sale of promo CDs constitutes “copyright
infringement.”
Let’s set aside for a moment the nifty little legal fiction
that selling promo CDs infringes upon Universal’s copyrights in any way, shape
or form. To the best of my knowledge, this battle over promo sales has been
going on at least since the late-70s. I worked at a used record store in Nashville back in the day
and had to threaten a local Arista Records rep with arrest for shoplifting for
her attempts to “reclaim” promotional albums that were the “property” of Arista
from our store.
The doctrine of “first sale” aside, many states have trade
laws that negate the industry’s long-standing claim that promotional items are
merely “licensed” to writers, radio stations, etc. In Tennessee, for instance, the mere act of
physically transferring the record album or CD to an individual also
transferred ownership. None of this “we might want it back” licensing bullshit.
In my experience, the record labels have never
asked for a promo album back and if they ever did, I’d laugh in their face.
They may never send me another promo, ever (hey Cosloy!), but then again, I’d
write nasty stuff about them to the end of time, too.
I’ve sold many a promotional album…thousands of them,
probably, especially back in the late-80s when even a two-bit muletown rockcrit
hack like the Reverend would receive dozens of packages in his P.O. box each
week. My personal record was 17 promo albums in one day, until the CD age when
I bested that with a 40-disc day. Even though the labels have cut way back in
their promo mailings to ‘C’ and ‘D’ and even ‘Z’ level media like yours truly,
it’s a well-known industry secret that promos have always been used as a sort
of underground currency.
I’ve known major label publicists that kept a secret stash
of unstamped promo albums to sell to local used record stores for weekend
pocket change, and I’ve known radio programmers that received hundreds of free
promo discs as a subtle form of payola. When I was a restaurant manager, I used
to trade pizza for promo CDs with a chain retailer down the street, and I’ve
seen promo CDs bartered for drugs, sex and other tangible goods. The
promotional budgets of the record labels, once upon a time, were absolutely
obscene, and paid for from the artist’s recoupable fund. I remember sitting in
the office of a Music Row label VP in Nashville
and being told to “help myself” to the swag in his large walk-in promo closet.
Record albums, t-shirts, even liquor were all used to promote the “artist.”
As for Troy Augusto, he’s got the EFF defending him in this
matter, and I wish him the best of luck. I’ve sold more than a few promo discs
on eBay myself, and had quite a few auctions pulled by the “copyright owners.”
I’d usually wait a few days and repost the item with a different
description…true fans always found the item and I typically sold most of what I
auctioned. I did once get into an email pissing match with noted electronic
musician Wendy/Walter Carlos, who had my auctions for promo copies of his/her
movie soundtracks pulled from eBay as copyright infringement. I finally just
gave up and carted the damn things down to a local store and got a couple bucks
each in trade that I probably used to buy something with more bite, musically.
As for Doug Morris and his loneliness problem…Doug, if you’d
stop pissing off everyone around you, you might not feel so isolated in this
world. As long as the labels continue to sue the people that buy their
products, bully and threaten their retail partners, and drag anybody that might
even consider taking a dime out of their corporate pockets into lengthy and
costly litigation…well, really, what’s the different between Universal and the
Soprano family?