Hodejo1 writes: In 2007, James Taylor initiated an audit of his royalty payments dating back to 2004. In that three-year span, Taylor and his accounting firm, Gelfand, Rennert & Feldman, LLC, found underpayments totaling $1,692,726. His label, Warner Brothers deftly accomplished this via 52 alleged ways all listed here. This includes such dubious tactics as applying royalty rates lower than the contract stipulates and charging manufacturing costs as 'recording costs' so they can be applied against royalties. Taylor's auditors also found a 'suspense account' at Warner Music that held an unspecified amount of Taylor's royalties. When pressed for its purpose, Warner denied the account existed, and declined to offer any details on which products or payments were included in this alleged account. As one reader posted on Digital Music News "Wow, what are the chances they didn't do exactly the same thing to all their artists?" Of course, labels still continue to claim they serve the artists when they call every new technical innovation in music theft.
Receiving a million dollars tax free will make you feel better than
being flat broke and having a stomach ache.
-- Dolph Sharp, "I'm O.K., You're Not So Hot"