The Sanctuary Records Group has filed a countersuit in its dispute over Dual Disc licensing with Los Angeles based 5.1 Entertainment Group. Dual Disc is a two-sided flipper disc that has CD Audio content on one side and DVD content on the other side.
News of the countersuit action comes after 5.1 Entertainment filed a $50 Million lawsuit against Sanctuary Records Group claiming that the label had failed to deliver up to 220 albums, including 140 albums for release in the Dual Disc format. Sanctuary Records Group contesting the statements made by 5.1 Entertainment and making a few of their own in the countersuit.
Sanctuary’s Countersuit Against 5.1 Entertainment
Several stories on Sanctuary’s countersuit against 5.1 Entertainment are now on the Internet. The most informative of these comes from the Evening Standard in the U.K.
The Evening Standard report says that Sanctuary alleges it had licensed over 160 albums to 5.1 Entertainment for Dual Disc release but that these Dual Disc releases had “failed to sell in any volume” and that titles by artists including Crosby & Nash, Megadeath and Brian Wilson didn’t make it to Dual Disc because 5.1 Entertainment “refused to pay the associated expenses” of remixing the albums into Surround Sound.
The Evening Standard also quotes Sanctuary’s attorney Bert Deixler of the Proskauer Rose firm in the U.S. as stating that “The royalty statements prepared by Label show that not one single artist sold in excess of 1,000 units in any six-month period and the greatest sales for top-selling artists such as Bob Marley…averaged 250 units in the six months. In one six month period, Bob Marley had more discs returned than he sold.”
Interesting Case to Follow
The Sanctuary/5.1 Entertainment litigation over Dual Disc licensing promises to be an interesting one to follow. Given the aggressive stance each firm has taken to date in this matter, one wonders whether we are likely to see any Sanctuary licensed material on 5.1’s Silverline label in the future. We’ll certainly watch this one with a keen eye in the weeks and months ahead.