Allman Brothers Get OK to Pursue Suit Against UMG

The United States District Court have ruled in favor of the surviving members of the Allman Brothers Band in their suit against UMG Recordings. UMG had filed a motion to dismiss the case.

Band manager Bert Holman stated "We are pleased that the Allman Brothers Band will now have the opportunity to show the court how badly UMG has treated the band and to finally receive a fair share of the many millions of dollars UMG has made from the band's work. The band made these classic recordings in the 1960s and 70s for its first record label, Capricorn Records. That label took advantage of the band's inexperience at the time, failed to pay royalties to the band members and Capricorn eventually went bankrupt from mismanagement. Polygram, UMG's predecessor, acquired the recordings out of that bankruptcy. By that time, these classic albums were already established hits and had recouped any recording expenses many times over. Polygram and its buyer UMG had nothing to do with the creation of these recordings, incurred no risk or cost, and never had to spend a dime marketing them or promoting the band. It is outrageous that UMG refuses to honor its contract with the band and pay a fair share of the money it receives when it licenses the recordings to third parties like iTunes and simply sits back and collects a fee whenever iTunes licenses a download."

UMG has been paying the band at a much lower rate than the norm as if the music being sold through new delivery methods incurred the same costs as vinyl records sold through regular stores. New media sales normally pays 50% of revenues received by the company for third-party uses. UMG had claimed in their request for dismissal that sales of digital downloads by on-line distributors was identical to the sale of vinyl records in the mid-80's.

The surviving members of the band participating in the suit are Gregg Allman, Butch Trucks, Jaimoe and former member Dickey Betts.