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Price Fixing Settlement "glitches"
Public librarians aren’t prone to looking gift horses in the mouth, but many have nevertheless been taken aback by the odd and in some cases overly generous allotments of free music CDs that have begun arriving in the last week as the result of the settlement of an antitrust lawsuit against major record companies.
The CD cornucopia — consisting of approximately 5.6 million compact discs — was billed as a windfall for libraries and schools when it was announced in September 2002 as part of a $144 million settlement of the lawsuit, which alleged that music distribution companies illegally inflated the price of CDs by requiring retailers to sell them at or above a set level in order to qualify for substantial advertising funding.
But when the first shipments began arriving last week, some librarians suspected that the companies — the Bertelsmann Music Group, EMI Music Distribution, Warner-Elektra-Atlantic, Warner Music Group and Sony Music Entertainment — were dumping CDs that had been gathering dust in warehouses when they received hundreds of copies of some titles for which there is little or no demand.
Computer programming glitch blamed
The good news is that the mystery has been solved and the source of the overabundance has been determined to be nothing more sinister than a computer-programming glitch that will soon be fixed, law enforcement officials say.
The bad news is that libraries that were among the first to receive their free CDs are now going to have to figure out what to do with all the duplicates.
Among them are the librarians at the Tacoma (Wash.) Public Library, who last week received a shipment of 1,325 CDs that included 57 copies of “Three Mo’ Tenors,” a 2001 recording featuring classically trained African American tenors Roderick Dixon, Thomas Young and Victor Trent Cook; 48 copies of country artist Mark Wills’ 2001 album “Loving Every Minute,” 47 copies of “Corridos de Primera Plana,” a greatest hits compilation by Los Tuscanes de Tijuana (2000); 39 copies of “Yolanda Adams Christmas” (2000); 37 copies of Michael Crawford’s “A Christmas Album” (1999) and 34 copies of the Bee Gees’ “This Is Where I Came In” (2001).
“Not to disparage the artists represented, but I was pretty surprised by the numbers,” said librarian Lara Weigand, noting that the library system normally would stock no more than two copies of the most-popular titles at each of its 10 branches. “I didn’t know what the terms of the settlement were for schools and libraries, but I did not think that it was the intent that we would get more copies than we could use.”
Other libraries reported similar anomalies in their part of the settlement, which earlier this year led to approximately 3.5 million consumers who signed up as complainants in the lawsuit receiving checks for $13.86 apiece.
User Comments
(These do not necessarily reflect the beliefs of this site)
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debazoz
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Date: June 18, 2004 @ 11:33 PM
As an educator, this doesn't surprise me a bit. Schools receive "gifts" like this all the time. Companies will receive wonderful press from giving a school 80 computers. What they don't tell anyone is that they are old 486's with green screens that they didn't want to pay a disposal company to get rid of them. This goes for books, office equipment, etc. Happens all the time. |
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independentm...
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Date: June 19, 2004 @ 10:27 AM
"But when the first shipments began arriving last week, some librarians suspected that the companies — the Bertelsmann Music Group, EMI Music Distribution, Warner-Elektra-Atlantic, Warner Music Group and Sony Music Entertainment — were dumping CDs that had been gathering dust in warehouses when they received hundreds of copies of some titles for which there is little or no demand."
Well duh, no sh*t Sherlock.
(Computer glitch - my ass.)
I got my check for $12 and change, but don't feel vindicated. I, and all of us who did, should have not taken part in a class action and instead sued on our own behalfs.
Of course, only the trial lawyers won.
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independentm...
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Date: June 19, 2004 @ 10:33 AM
...well, the RIAA labels also won by getting off so lightly. |
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autodidact
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Date: June 19, 2004 @ 10:51 PM
Something is wrong here. Either this is the fault of people administering the distribution -- government workers, in other words -- or it is the judge's fault. The judge was supposed to approve a settlement in which libraries would be provided with a good selection of CDs, not just old stock that the record companies wanted to unload. The court reviewed the details of the distribution arrangement only a few months ago.
Then again, my local library doesn't know how to pick good music CDs, either. So maybe the people in charge of selection had similarly awful taste.
If these problems are widespread, I suspect the plaintiffs may be back in court again, complaining that someone didn't hold up their end of the bargain.
Our library is slated to get at least 250 CDs, according to my reckoning. It could be even more. If 50 of those are "3 Mo' Tenors" CDs, I'm gonna scream bloody murder. |
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independentm...
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Date: June 21, 2004 @ 9:33 AM
May as well get a voice coach and start yer "screaming lessons" now. |
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SkippyQSB
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Date: June 22, 2004 @ 3:27 PM
I bet that even though this is ordered for settlement, they will still try to take it as a tax write off. Anyone here work for or know anyone in the tax community? |
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SkippyQSB
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Date: June 22, 2004 @ 3:29 PM
Forgot to state this... I think it's pretty bad that the libraries were forced to pay full price to begin with. They are not for profit. More proof that the RIAA and it's members what all the excess money they can get away with getting. |
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