Bit Parts

The U.S. District Court for the Central District of California ruled that musician George Clinton failed to timely object to the alleged underpayment of Internet royalties. Clinton v. Universal Music Group (UMG), 07-672. Clinton's loan-out entity had signed a music production agreement in 1980 with UMG's predecessor-in-interest, Casablanca Records. Clinton filed a breach-of-contract suit in 2007 over 2003 royalty statements. The 1980 agreement made all royalty statements binding on Clinton “unless specific objection is made by Producer, by written notice to Company stating the basis thereof, within three (3) years after the date such statement or account is rendered.” Granting summary judgment for UMG, District Judge Philip S. Gutierrez emphasized: “Defendants point to the First and Second Audit Reports [of UMG prepared around 2004 by an auditing firm Clinton hired] as evidence that [n]either ' audit report[] specifically objected to the calculation of [I]nternet royalties.” Thus, District Judge Gutierrez concluded that the Internet royalty claims, raised by Clinton for the first time in his second amended complaint, “are barred for failure to timely and specifically object in writing as required by the 1980 Agreement.”

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