AFM launches legal action to force digital pension payments from the major labels

The American Federation Of Musicians has launched a legal action against the three major record companies in the New York courts relating to an agreement between the majors and the AFM pension fund, in which the American branches of the record companies promised to pay 0.5% of all receipts from non-domestic digital transmissions of recordings into the fund. This agreement includes the ever growing monies from streaming, non-permanent downloads and ringbacks, and dates back to the 1990s - when such income was marginal. The AFM says that independent auditors have identified missing payments last year, but attempts to settle the matter directly have been unsuccessful. AFM International President Ray Hair says: "The record companies should stop playing games about their streaming revenue and pay musicians and their pension fund every dime that is owed. Fairness and transparency are severely lacking in this business. We are changing that".