Subject:      Goos vs. Metal Blade
From:         fabfay@aol.com
Date:         1996/12/06
Message-ID:   <19961206013100.UAA10906@ladder01.news.aol.com>
Newsgroups:   alt.music.goo-goo-dolls
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GOO GOO DOLLS GIVE NOTICE 
4 December 1996 

Determining that they've been signed to a grossly unfair, one-sided and
unenforcable contract, the Goo Goo
Dolls have given legal notice to Metal Blade Records that the band will
no longer record for the label, which is
distributed by Warner Bros. Records. They plan to enter into discussions
with other record companies and
music publishers. How's this for getting ripped off? After selling 2.1
million copies in the United States of
their 1995 breakthrough A Boy Named Goo, which featured the smash hit
"Name," the Goo Goo Dolls have not
received a single cent in royalties. To take it one step further, since
releasing their album Jed in 1989 on Metal
Blade, the group has also not seen a cent in royalites. While the monies
from album sales have all been kept by
Metal Blade, the total advances the band pocketed during the past eight
years does not even approach $100,000.
Metal Blade is attempting to enforce against the band a contract that
extends beyond a seven year period, which
is not permitted by California law. (With respect to pre-1994 contracts
for personal services, unless the
minimum annual compensation for such services exceeds $6000 per band
member, California law deems the
contract unenforcable). The Goo Goo Dolls' initial royalty rate of 8% of
the suggested retail price of a CD is
lower than the industry standard, something the band was not aware of
when they signed to Metal Blade. The
band earned only about 25 cents (after producer royalties) on each
$13.00 record sold in the U.S, which is less
than 30% of what an artist would typically earn. Additionally, the
band's royalty rate is payable on only 90% of
net sales of vinyl, while on compact discs, the band's royalties are
calculated on only 75% of the retail price,
with an additional "packaging" reduction of 25%. The Goo Goo Dolls
royalty is even lower on records sold
overseas. It's even more unfortunate that only now has the band
discovered the clause in Metal Blade's original
agreement with them that gives the company control and partial ownership
of the songs written by members of
the Goo Goo Dolls.

CMJ News website
(http://www.cmjmusic.com/News/cmj.html)