KAASS LAW - Litigation and Trial Law Firm

This analysis outlines a structured approach to addressing royalty mismanagement issues involving ASCAP, BMI, and the publisher, Evolving Sound. Below is a concise action plan based on your points: Action Plan for Royalty Mismanagement 1. Issues Identified • Unauthorized Registration with ASCAP: Challenge ASCAP’s registration of works without explicit authorization, especially as CLIENT is a BMI member. • Royalty Discrepancies: Investigate minimal royalties reported by ASCAP and limited payments for international performances via BMI. • Publisher Breach of Fiduciary Duty: Address Evolving Sound’s potential unauthorized registrations and mismanagement. • Pending Registrations: Push BMI to expedite “Pending Society Review” cases. • Non-Responsiveness: Demand accountability from ASCAP and the publisher. 2. Immediate Actions • Send Demand Letters: • ASCAP: • Request detailed royalty accounts and challenge unauthorized registrations. • BMI: • Request updates on pending registrations and support for international royalties. • Evolving Sound: • Demand full accounting and address breaches of fiduciary duties. • Evidence Compilation: • Gather BMI royalty statements (2021–2024). • Consolidate ASCAP Work IDs and royalty records. • Collect communications with ASCAP, BMI, and Evolving Sound. • Independent Audit: • Request audits of ASCAP’s and BMI’s royalty collections. • Examine Evolving Sound’s records for discrepancies. 3. Legal Remedies • Breach of Contract: • Pursue claims against Evolving Sound for unauthorized ASCAP registrations and negligence. • Copyright Infringement: • Address unauthorized registrations by ASCAP as potential infringement. • Unjust Enrichment: • Seek repayment of improperly retained royalties from ASCAP. • Negligence: • File claims against Evolving Sound for mismanagement of registrations. • Litigation/Arbitration: • Proceed to arbitration or litigation if preliminary demands fail. 4. Long-Term Solutions • Centralize Registration: • Ensure all works are registered and managed exclusively under BMI. • Revise Publisher Agreement: • Terminate agreements with Evolving Sound if breaches are confirmed. • Implement stricter agreements for future publishing relationships. • Safeguards in Contracts: • Define clear terms for ownership, registration, royalty reporting, and dispute resolution. • Engage Royalties Specialist: • Hire a professional for ongoing monitoring and management of royalty collections. 5. Engage Legal Counsel Legal counsel specializing in entertainment law should: • Draft and issue formal demand letters. • Negotiate with ASCAP, BMI, and Evolving Sound. • File claims for contract breaches, copyright infringement, and unjust enrichment. • Represent CLIENT in arbitration or court proceedings if necessary. Conclusion This approach emphasizes evidence-based advocacy, structured legal action, and long-term preventive measures. By holding ASCAP and Evolving Sound accountable and streamlining processes under BMI, CLIENT can mitigate future risks and recover lost royalties effectively.