Record companies may be forced to revisit questionable recording contracts following a landmark decision in the French courts yesterday. French rock legend Johnny Hallyday is suing Universal Music France. He claims that they engineered for him to become indebted financially to the label, thus enabling them to force him to agree to projects and contracts he would otherwise have rejected.
Having settled all past debts through royalties, Hallyday wants to regain control of his recordings and to secure compensation for the poor deal Universal dealt him in the past. The French courts awarded Hallyday ownership of his recordings yesterday, while appointing an independent specialist to analyse all past contracts between Universal and the singer to check his claims deals were consistently done in an unfair way.
Universal refute Hallyday's allegations, arguing they loaned the singer monies secured on future record sales totally at his request, often helping him avoid bankruptcy or jail threats being made by French authorities over unpaid taxes. They also argue that it sets a dangerous precedent if artists can revist recording contracts at a later date and renegotiate past terms. Nicolas Boespflug, representing Universal, said: "If all Johnny's claims are responded to favourably by the industrial tribunal, the consequences could be absolutely catastrophic for the recorded music business".