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Lack of transparency is the biggest problem
The problem, according to Petit, is that the music industry is not transparent about this. For example, it is often unclear to artists how much they earn from their music and what part of that income is passed on to them. “In the age of streaming, this is accompanied by huge amounts of data, especially if you are a big hit like Mr. Probz. As an artist you need a specialist to be able to turn it into chocolate.”
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In 2020 Mr. Probz has already confronted SME with his Left Lane BV company in court. At that time, it was established that the record company had to open business in the form of accounting. Copyright law was also recently changed, requiring music creators to provide an annual statement of revenue and costs. Petit: “The fact that it’s complex data doesn’t mean that parties like record companies don’t have a responsibility to make it transparent.”
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Mr Probz and his attorney claim – corroborated by research by the audit firm Grant Thornton – that SME and its subsidiary Ultra Records owe the singer 10 million euros, because the company would not adhere to the withholding arrangement of the contract. That amount “is not a finger job,” Petit thinks. “This is at least a plausible hypothesis.”
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“Many artists have no idea if the fee is reasonable”
“This could be a deciding factor when it comes to how transparent the music industry should be,” says the lawyer. Mr. Probz thinks he’s not the only artist he plays for. Petit confirms this, but also says that not everyone has the financial means to create a lawyer and an accountancy firm. “The reality is that many artists have no idea if the compensation they receive is reasonable.”
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Petit is positive about Mr. Probz’s case. “From what I’ve read, they have a good reason. Grant Thornton’s studies reinforce this feeling. At the same time, Mr. Probz’s arguments are well known and we don’t yet know Sony’s defense.” Should the singer win the case, Petit expects many similar charges. “Then the fence is out of the dam.”
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NU.nl asked Sony Music Entertainment for an answer. The company claims to “strongly contest” the allegations and awaits trial.
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