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Article from Making Music, November 1987 |
Warner Communications International has bought British music publishers, Chappells. However, this isn't just stock exchange wheeler-dealing — this merger could end up costing all songwriters part of their income.
Although Warner Communications already owns WEA Records, and Warner Publishing, Chappells is acknowledged as one of the world's leading music publishing houses; together, the two firms own a large proportion of pop music published in the UK. The Warners/Chappells deal has just been referred to the Monopolies & Mergers Commission.
Which is good news for a body of independent music publishers known as IMPACT [Independence For Music Publishing Action Group]. IMPACT spokesman Tim Hollier explained why to Making Music. "If Warner Records says to Warner Publishing, 'we will pay less royalties', Warner Publishing won't argue, and the composer will lose out."
A further problem involves the proposed abolition this year of the legally fixed royalty rate. "It's not so much Warners and Chappells coming together, but 'controlled competition clauses' in their contracts. These determine that British writers signing to US companies only receive 75 per cent of the statutory rate on mechanicals — this has become almost standard on American worldwide contracts."
Making Music spoke to Russ Edwards, Warner's Director Of Corporate Communications in New York, who proffered us a languid "no comment" on the suggestion that they would be cutting their artists' royalties. He confirmed that Chappells would continue to operate as a separate entity for the four months the Monopolies Commission would take to report. There were no suggestions to confirm the rumour that Warners might 'disinvest' in the UK if the Commission found against them. "We're hopeful of a favourable decision," he told us.
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