No Doubt, Beck Concerts Are Not Anti-Label, Artist Coalition Says

02.26.2002

LOS ANGELES — Like the Olympics or a presidential election, Grammy week is on its way to becoming synonymous with controversy.

Last year, with protesters gathered outside, accused homophobe Eminem and gay singer Elton John performed together, and this year all eyes are on an artists' rights group whose big stars — including Sheryl Crow, Beck and dozens of others — are staging high-profile benefit concerts on the eve of the ceremony. They plan to use the money they raise to fight the way recording contracts work.

Eagles singer Don Henley formed the Recording Artists Coalition two years ago (see "Henley, Petty, Love Urge Artists To Fight The Labels' Power"), and it first garnered attention last spring when members testified before the U.S. Senate on online rights (see "Morissette, Henley Tell Senate To Remember Needs Of Artists").

But the organization's latest battle has created a media frenzy, partly because of the talent participating and partly because the issue appears to be a war between artists and their labels.

"The nature of record contracts is so coldly exploitative it's baffling," Mike Doughty, former Soul Coughing frontman and a member of RAC, said. "Look, why shouldn't artists be released from their contracts after a period of time if everyone else in the state of California is? Is fair somehow not fair when it comes to musicians?"

California's 56-year-old labor code includes what has come to be known as the "seven-year statute," which, until 1987, allowed all workers the right to terminate a personal service contract after seven years. Fifteen years ago, however, the record labels successfully lobbied for an amendment that made musicians liable for albums still owed after seven years with a label.

The Recording Artists Coalition is fighting to eliminate that amendment, and in January it called on state legislatures for support (see "Beck, Deftones, Others Rally For Bill That Could Change Recording Contracts").

Tuesday night's Concerts for Artists Rights — four concerts in the Los Angeles area featuring No Doubt, Pearl Jam's Eddie Vedder and the Eagles (see "Korn, Ozzy, Zombie, Elton Out; Vedder, Beck In For Musicians' Rights Group Shows") — will raise money for the coalition, its current battle and possibly others to come.

The concerts have been called anti-label shows by many in the industry, but Jim Guerinot, a manager for No Doubt and the Offspring and a leader in RAC, said that is simply not the case.

"The misconception is that these concerts are to battle the record labels," Guerinot said. "They're not at all. These concerts are to raise money so that we can actually function. We need to raise money to pay for the people that we have employed; it's not raising money to fight labels, that's way too simplistic. There's going to be other issues where we are in line with the labels, whether it is payola, Internet piracy or heath care, and there are things where we are going to differ. We are going to differ every day, but we still manage to do business together."

Several record label executives and the Recording Industry Association of America that represents them did not return calls for comments but have argued in the past that the labor code amendment provides needed protection for the labels, who they say take massive financial risks and endure the failure of 90 percent of their acts. In a letter to Democratic Sen. Kevin Murray, who is working with the RAC, heads of the five major label conglomerates said they believe removing the amendment will upset the "contractual balance that now exists." They will be unable to take risks on new artists if they can't hold on to their profitable acts, they contend.

That is not a good enough argument for Guerinot. "What they're saying is that the successful recording artists are the venture capitalists for their values, but they're not allowed decision making in running the business," he said. "Would you work at a business where 90 percent of the employees don't work or fail? Would you want to be one of the only 10 percent who show up on time and have the obligation to carry on your back the other 90 percent who don't? It's not our fault. Maybe they sign too many bands or they sign them too soon or they sign something that is out of step with what's going. We're not an equity partner to make that determination.

Outsiders should not look at what the Recording Artists Coalition is doing as biting the hand that feeds them, but rather just cleaning up the labor code, Guerinot explained. "We just say, 'If it's a bad law, let it not apply to anyone. If it's a good law, it should apply to everyone.' If we have problems with our recording contract, we'll take them up with our label. Legislature should not tie our hands."

Separate from the seven-year statute debate that has been brewing since last fall is the differing opinions about whether successful artists, assumed to be as millionaires by most, should be staging fund-raising concerts for their own cause. Island/Def Jam Music Group President Lyor Cohen called the concerts selfish in a Los Angeles Times article published Sunday. Even an artist in the coalition, who would not go on record, questioned the concerts.

Calling artists selfish for performing at the concerts and arguing for contract rights is wrong, Guerinot said, because many of them, including the coalition's founder, are fighting the battle only so the next generation of artists will be treated fairly.

"If these people don't speak up, who does?" Guerinot asked. "Don Henley is one of the rich rock stars. He has made a tidy sum. Who needs this? This doesn't put any money in his pocket. This is bullsh--. Every time you turn around you see another musician say, 'This isn't fair.'

"If Congress, local and state legislatures are meeting to discuss things that impact the recording artist, we want to be there to have a presence," he added. "We think we deserve that. We don't expect the RIAA or other trade organizations to represent our interests; they have their own. We think that's fabulous. We don't begrudge them that."

Some predict the RAC's current battle could generate momentum for a broader movement of musicians seeking more detailed accounting practices from record labels or even a full-on industry probe by the government, but Guerinot said the coalition is just taking it one step at a time.

"We're talking to the people who are key to the issue now, then we got to the next step," he said. "If nothing else, I don't see how the record industry wins by holding the artist in this position. How do you claim victory?"

For complete Grammy coverage, check out the MTV News Grammy Archive.

—Corey Moss

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