May 13, 2004 • 1 min read

One case closes, another opens for EMI

A New York court cleared EMI of allegations it inflated SoundScan figures and ruled Avatar must pay damages, while rapper Ras Kass has sued EMI's Priority Records.

And now over to the CMU legal desk - and the end and beginning of legal action for EMI.

Firstly a legal victory for the major - a New York court yesterday cleared it of allegations made by former partner label Avatar Records that it used marketing consultants to attempt to inflate SoundScan figures at US independent record shops. The allegations first surfaced in the New York Post last month after the major and the independent fell out over who owed what after various joint venture projects were completed. In a double win for EMI, Judge Victor Marrero also ruled that Avatar were liable to pay damages relating to $1.1million the major claims it is owed relating to a distribution contract between the two companies. No word yet on whether Avatar plan to appeal.

EMI's legal department, meanwhile, have a new case to concern themselves with. Rapper Ras Kass, real name John Austin, has filed a suit against EMI's US-based hip hop imprint Priority Records claiming breach of contract, unfair competition, restraint of trade and other abuses. Austin, who signed to Priority in 1995, reckons the label failed to fulfil its marketing obligations to his 1996 album 'Soul On Ice' and 1998 release 'Rassassination', and that two senior Priority executives maliciously interfered with his career. In addition he accuses the label of "fraudulent accounting practices" that have deprived him of royalty payments. Austin is looking to get out of his contract with the label and to receive various damages payments. EMI are yet to comment on the lawsuit.

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