The creators of the 1984 Mockumentary ‘Spinal Tap’ have settled their copyright dispute with Universal Music Group. The dispute originally revolved around the Soundtrack of the film.
Harry Shearer, who plaid the bassist in the movie filed a $125 million dollar lawsuit on breach of contract against Universal Music Group and Studio canal. The suit was based upon unpaid royalties only earning $179 in merchandising and the Soundtrack from 1989-2006. Later the co-creators joined the lawsuit as well seeking damages of $400 million.
What are Royalties and why are they so important?
Royalties, in regards of music is when an artist is given an amount of money each time their song has been played live. Live in the context doesn’t just mean at a concert it encompasses every time the song is played on the radio or television etc. So, Shearer was basing his claim on was the fact he was given only $98 dollars in Royalty payments from the soundtrack between 1989-2006 which is a small figure for such a cult classic mocumentary and Shearer should have received more than $98 dollars over these several years.
Court proceedings went ahead and eventually the matter went into mediation in 2018. The dispute got resolved and both parties have settled. However, this doesn’t mean that the claim against Studio Canal has disappeared where there have been alleged breach of contract and anti-competitive business practices done by the company.
Announcing the agreement Universal music group will continue to distribute the recordings but the rights will revert to the original creators it is unclear on the amount that spinal tap were awarded financially to settle the issue.
Why do Companies Settle?
Settlement is an official agreement to resolve a dispute or conflict this is when the parties don’t want to go through the court procedure because it isn’t the most cost effective solution as there are court fees and costs for hiring lawyers, as well and the more time spent on the matter the more money it will cost. As a result of this companies settle when they know it will be a costly endeavour and when they know that they will most likely be liable for the breach or whatever matter it is taken to court for. So rather than paying millions for an infringement or breach these companies come to an amicable agreement which is usually a financial which is significant and satisfactory for the other party.
Written by Owen White 3rd Year Law Student at Solent University
