GM and Ford Accused of Refusing to Pay Music Royalties

By on July 28, 2014

The Alliance of Artists and Recording Companies (AARC) filed a class action lawsuit against General Motors, Ford Motor Co., accusing defendants of illegally withholding music royalties owed to artists and record labels in violation of the Audio Home Recording Act.  The complaint also names Denso International America Inc. and Clarion Corp. of America, makers of the 10GB digital Jukebox at the heart of the litigation, as defendants.

“We did not take this step lightly. We filed suit only after exhaustive efforts to negotiate a compromise,” said AARC Executive Director Linda Bocchi.  “While no one likes litigation, Ford, GM, Denso, and Clarion have stonewalled long enough, and we are determined to collect the royalties our members — and all artists and music creators with rights under the AHRA — are owed.”

AARC filed the lawsuit on behalf of a proposed class of copyright owners and featured recording artists and organizations that represent them, seeking $2,500 in statutory damages for every digital audio recording device manufactured, imported or sold by any of the defendants during the relevant period.

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