Barry Manilow and Hipgnosis were in court in London last week in their ongoing dispute over bonus payments stemming from a 2020 deal between the artist and the music rights company.
Manilow’s legal reps were mainly keen to stress that, when it comes to the bonus dispute, their client would much rather be having this argument in a Californian courtroom.
Indeed, Manilow has already filed his own lawsuit in California. Therefore, his lawyer claimed last week, Hipgnosis pursuing this litigation in London is simply “a cynical and deliberate attempt” to “thwart” the “contractual rights” of both Manilow and his companies.
According to Law360, that’s based on the argument that Manilow’s agreement with Hipgnosis allows him to decide where to file legal action relating to disputes over payments.
With that in mind, Manilow’s team asked the UK judge to dismiss the bonus dispute element of the Hipgnosis lawsuit. The music rights company is also suing Manilow over allegations he owes them royalties that he received from Sony Music, because - under the 2020 deal - Hipgnosis acquired the revenue and royalty rights that stem from his recordings.
Manilow is happy for that dispute to be heard in the London court, but says the bonus dispute should be left to a judge in Los Angeles.
Manilow’s Californian lawsuit provided quite a lot of detail about his deal with Hipgnosis, as well as being very critical of the music rights company which, he said, “lacked the skill, experience and expertise” to “optimise” his recordings.
As part of the 2020 deal, Manilow got an upfront payment of $7.5 million, but was also promised two bonus payments of $750,000 each if the revenue streams Hipgnosis acquired grew by 10% a year during the first four years of the deal. Manilow insists those targets were achieved, but Hipgnosis disagrees, hence the legal battle.
Legal reps for Hipgnosis set out their arguments for why the targets were not met last week, while also insisting that both the bonus dispute and the Sony royalties dispute should be considered in a London courtroom.
Manilow’s deal does not prevent Hipgnosis from pursuing its legal claim in the UK, its lawyers argued, and his attempt to force the litigation to the US is a “tactical measure” that aims to delay any resolution in this dispute.