MCA Sues Polygram Over Motown Deal : * Entertainment: The plaintiff says its rival induced Motown to shift its record distribution.
MCA Music Entertainment Group on Thursday fired another volley in the war over Motown Records, accusing rival Polygram of “inducing” Motown to break off relations with MCA.
The Los Angeles Superior Court suit, which seeks damages of more than $50 million, alleges that Polygram encouraged Motown to sever its distribution deal with MCA through a series of secret meetings and communications. Polygram is also accused of interfering with MCA’s attempts to sell Motown records to retailers.
Polygram, the European record giant that recently entered into domestic and international distribution agreements with Motown, had no comment on the suit.
Motown signed with Polygram in September, after alleging in a suit of its own that Universal City-based MCA botched the promotion of its songs to radio, mismanaged the distribution of the soundtrack to the Spike Lee film “Do the Right Thing” and overcharged for compact discs.
MCA countersued, claiming that it was owed millions of dollars by Motown’s majority owner, Boston Ventures. MCA also accused Boston Ventures of interfering with Motown’s management.
Boston Ventures holds a 70% stake in Motown. MCA owns 18%, and the rest is held by investors.
MCA maintains that its distribution contract with Motown remains valid until 1998. In its lawsuit, MCA accuses Polygram of entering into distribution discussions before Motown’s operating committee had voted to formally end the label’s relationship with MCA.
MCA also says Polygram made secret loans to Motown. Polygram, the suit alleges, acted to appropriate “MCA’s profits under the distribution agreement by structuring the Polygram/Motown distribution agreement in such a way as to conceal the true nature of a substantial line of credit from Polygram that Motown could draw upon.”
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