Even as the music industry is battling piracy, here���s another issue that has come to the forefront ��� royalty. Leading music composers and lyricists claim that a few audio companies are ���stealing��� their royalties by making them sign ���fake agreements��� which state that they will ���forego their royalty from their compositions because they have received an advance amount for their work.��� The issue came to light recently when music composer GV Prakash tweeted, ���Royalty is the basic right of a creator and it stays with him or her! Trying to steal that from them is cheap.��� While a producer pays the lyricist directly, he presents a package (which includes the composer���s fee, singers��� remuneration and recording expenses) to the composer.
The problem arises when some labels include a clause that mentions an additional figure as having been paid as advance royalty to the composer and the lyricist. The creators feel that it is unfair to be forced to sign this agreement when no extra amount is paid.
This, many state, is creating bad blood among the music fraternity in Kollywood. ���Then, I can���t even publish my lyric on my blog because the audio company can sue me,��� rues lyricist Madhan Karky, ���These days, there are several media through which royalty can be earned, like mobile ringtones.���
Composers state that this ���agreement��� deprives them of royalty earned from the song/album in future, as the label will be its sole owner. However, audio industry executives present a different side to the issue. They say that the idea behind this clause is mostly to safeguard the label���s interests. ���Suppose if there arises a situation in the future where music labels are asked to pay an additional percentage as royalty to the creators, it would mean a higher cost of acquisition for the label,��� explains an insider. ���We are already paying a bomb to acquire content and the business is in terrible shape. Piracy has struck us hard and now, we estimate a loss in revenue of up to 60 per cent from mobile ringback tones after TRAI���s implementation of double confirmation, which requires the user to confirm if they want to continue using a particular caller tune. In these circumstances, how can a company survive by paying additional royalty?��� ask industry representatives. As labels do not directly enter into an agreement with composers or lyricists, audio industry executives say the onus on reaching a settlement in this regard lies with the producer.
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Vairamuthu, who is on the board of directors of the IPRS, has signed agreements with this clause to facilitate revenue generation, they add. So, why are creators signing such a clause? Says Vairamuthu, ���I have signed documents keeping in mind the rapport and love I share with the makers. I feel that considering the effort we put into the compositions, we ought to get a share from the royalties.���
The issue has already been taken up by the Writers��� Union, with lyricists like Thamarai, Yugabharathi, among others voicing their view. Na Muthukumar, lyricist, says, ���We are discussing this issue with the authorities concerned, and hope to find a favourable solution.��� GV Prakash asks, ���Leave established composers and lyricists, what will be state of struggling lyricists and composers who are new to the industry?���