Courtney Love, Universal Settle Legal Dispute
Mon Sep 30, 3:28 PM ET
LOS ANGELES (Reuters) - Rock music star Courtney Love and Universal Music Group on Monday settled a long-running lawsuit with both sides claiming victory in a dispute that highlighted the battle between musicians and record labels over artists' contracts.
Pop stars like the Eagles' Don Henley believe the record companies routinely miss paying them millions of dollars in royalties due to flawed accounting and arcane language in record contracts.
Love, lead singer of the rock group Hole and widow of Nirvana's late lead singer Kurt Cobain, had been one of the most vocal critics of music industry accounting, and her case had come to symbolize the artists' cause.
Despite the settlement, Love vowed to continue the fight.
"I plan to continue my advocacy of artists in Sacramento (California's state capital) and Washington, where this belongs," she said in a statement.
Financial details of the settlement were not disclosed, but Universal Music Group, the world's No. 1 record company and part of Vivendi Universal, waived rights to Love's future records -- a key concession sought by the singer.
Love and members of the Cobain estate granted Universal Music Group, or UMG, permission to release new Nirvana records featuring previously unreleased songs and compilations of the group's old hits -- a major victory for the music company.
SMELLS LIKE TEEN SPIRIT ... MONEY, TOO
Cobain was the lead singer of alternative rock band Nirvana before he committed suicide in 1994. In the years since, he has become a rock icon, making songs from the band's CDs like 1991's smash "Nevermind" highly valuable for Universal as part of "Best of" CDs or sets of old CDs.
Already, Universal is putting together a new CD of the band's material that is scheduled to be ready for the upcoming holiday season. It is said to feature a never before released Nirvana song called "You Know You're Right."
Along with winning rights to future records, Love gained ownership of several past Hole songs, and UMG agreed to waive re-recording restrictions on some earlier Hole songs. Hole CDs include "Live Through This" and "Celebrity Skin."
But as part of the deal, UMG received a "royalty override" on some of Love's future records, meaning it will get a small percentage of their revenue.
Love is currently recording a new album, and the first single is set to be released in January in the United Kingdom by Poptones Records.
Finally, Love may now release a Hole video or DVD with distribution handed by UMG.
A spokesman for Universal declined to comment beyond the news release announcing the settlement, and Love's attorney Barry Cappello, was not immediately available.
The deal prompts a bigger question for the industry, however, which is whether the artists who are complaining about the record companies' practices have the musicians best interests at heart or just their own.
In her statement, Love said the record stars, "must all work together through lobbying and collective bargaining to create the opportunities that have been lacking in our careers."
She is not the first outspoken recording star to settle with the labels.
In June, country music pop trio, the Dixie Chicks, agreed to end a dispute with Sony Corp ( news - web sites).'s Sony Music Entertainment that dealt with similar issues. The Dixie Chicks' deal paved the way for the release of their album, "Home," which topped album charts when released earlier this month.
The Recording Artists Coalition, which is led by Henley, is currently seeking legislation that would impose penalties on the record companies for faulty accounting. The group has waged its most vocal campaign in California, where it has addressed state lawmakers in hearings on the issue.