A court in the UK has decided that Hipgnosis Songs Fund cannot sue singer Barry Manilow in the UK over $1.5 million owing to a bonus over a dispute. However, the court allowed the fund to continue with its case for unpaid royalties related to the Hipgnosis lawsuit.
The Legal Dispute
Hipgnosis took legal action against 81-year-old Manilow in London in 2023. Who responded a fortnight later by filing a new case against the music investment company in Los Angeles. Hipgnosis agreed to pay $7.5 million for the rights to his catalogue of songs. Which includes hits like “Mandy” and “Copacabana”. But, in 2020, that deal took place.
Terms of the Deal
The deal said Manilow could get more money based on Hipgnosis’ growth in income. If the revenue grew by 10% every year in the first three years, then Manilow is entitled to $750,000 bonus. If the increase continues, another $750,000 would be paid over four years. Finally, this means they could receive $1.5 million in bonuses.
Hipgnosis said Manilow doesn’t deserve a $1.5 million bonus and also asked to pay royalties that Sony Records allegedly owed to Manilow and his entities, thus complicating the Hipgnosis lawsuit further.
Court Ruling
Manilow claimed that the matter of the $1.5 million bonus should be litigated in California. Which according to the contract gave him the option of where to litigate regarding the bonus payment. Judge Marcus Smith sided with Manilow, allowing him to select either the U.K. or the U.S. for legal battles over the additional payments per the agreement.
The court demanded a halt to Hipgnosis’ case over the bonus. However, it allowed the parts of the case involving the unpaid royalties, to go ahead in the UK. This aspect of the Hipgnosis lawsuit will proceed.
Statement from Hipgnosis
A representative of Hipgnosis said they were disappointed the issue could not be settled readily between the two. However, the company said they have respect for Manilow and his music and are confident the matter will be resolve fairly. A spokesperson for Hipgnosis said it was unfortunate the dispute could not be resolved amicably between the parties, but that the company respects Manilow and his music and is confident of a fair resolution.
About Hipgnosis
Hipgnosis is a company that owns the music rights of various artists, including Shakira and the Red Hot Chili Peppers, which was co-founded by Merck Mercuriadis. Mercuriadis has a lengthy track record managing artists such as Elton John, Beyoncé, and Chic’s Nile Rodgers. In 2023, Blackstone, the world’s leading private equity firm, purchased Hipgnosis for a whopping $1.6 billion.
While Hipgnosis’ dispute with Manilow is underway, experts group lawsuits can be multifaceted affairs that shed light on the ins and outs of music rights contracts, including accusations regarding fees. The Hipgnosis lawsuit exemplifies such complex legal matters.
