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.