The honeymoon is over. Less than a year after signing a distribution deal with Century Media, Earache Records is taking them to court.
The contention, according to Entertainment Law Digest is that Earache is owed $250,000 in licensing fees and that Century did not release Earache's back catalog, which is definitely the label's most profitable asset.
According to the article:
“‘Without each album being released in the U.S. during the term of the agreement, it is impossible for Earache Records to earn royalties in the U.S. market (in this case, for several years), and fulfill its obligations to its artists,’ the 17-page lawsuit states. (Parentheses in complaint.)
“To duck two advance payments of $125,000, Century Family’s lawyers sent the British label a letter that falsely accused it of breaching the licensing agreement, the complaint states. Earache calls that a ‘transparent pretext’ for delaying payment.
“As well as defaulting on the fees, Century Family allegedly used album artwork and set release dates without Earache’s approval. The U.S. company failed to account for royalties in a timely manner, Earache adds.”
Earache is also trying to get an injunction to prevent Century Media from releasing any further catalog from the label.
The people who ultimately lose here are artists currently on Earache's roster like Oceano, Bonded by Blood and Rival Sons.
I think it's safe to say this relationship is heading for corporate divorce court!
