Record Labels' Answer to Napster Still Has Artists Feeling Bypassed

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http://www.nytimes.com/2002/02/18/te...l?pagewanted=1

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February 18, 2002

Record Labels' Answer to Napster Still Has Artists Feeling Bypassed

By NEIL STRAUSS

In their bitter battles against Napster and other free music downloading services, record company executives have wielded one moral argument that has placed their position beyond self-interest: the fans take the music without proper permission and don't pay the artists a dime.

Last December, the major record labels responded with two Internet services of their own where fans pay monthly fees to download songs. Under this arrangement, however, the performers still don't get a dime: for each song downloaded, they stand to get only a fraction of a cent, according to the calculations of disgruntled managers and lawyers.

And, artists and their managers say, the labels, like Napster, aren't putting the music online with proper permission either.

"I'm not an opponent of artists' music being included in these services," said Gary Stiffelman, who represents Eminem, Aerosmith and TLC. "I'm just an opponent of their revenue not being shared."

Because the sites are new, no payments have been made yet, but the payment plan has so infuriated scores of best-selling pop acts, including No Doubt, the Dixie Chicks and Dr. Dre, that their lawyers have demanded their clients' music be removed from the sites, with some even sending cease-and-desist orders. Only in some cases have the major record companies complied.