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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3557
Experience:  Solicitors 2 years plus PQE
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A madrid based band has a contract sale of digital

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A madrid based band has a contract for the sale of digital music. Since 2010, the company has not reported or paid any royalties. When requested to do so, the company says there have been nosales to speak of and sugest the royalties are "rolled-over" to the next year. 2014 we requested a royalty report which showed a sale of 88 euros. Investigating the sales we discovered that a single is a best seller on 5 amazon sites but the royaty report shows no sales from those sites. We have requested the company to resubmit the royalties report as we believe there is an error. They refuse to do so stating that the report is correct. I am at a loss of how to go forward. We would like to see the correct royalty reports and payments and also cancel the contract on the grounds of breach of contract. What do you recommend?
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Does the contract contain any audit rights?
IS the company based in the UK?
Kind regards
AJ
Customer: replied 2 years ago.

Yes I have the right to pay (out of my pocket) for an audit. But I feel that enough evidence has been given to Company highlighting incorrect reporting. I also suspect that comany launched a parallel distribution from France which would be excluded from the audit.

It is a UK based company. Registered as a Management Solutions Company (non-financial)

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
Do you know whether the company is solvent?
On the basis that this is the 5th highest download, can you make a rough estimate as to what you should have earned?
Kind regards
AJ
Customer: replied 2 years ago.

Hi

The company is operational and acording to companies house is solvent.

I am having trouble working this figure out as amazon doesnt give out that type of information - it just reports that there have been sales of the product. I have just investigated Amazon but there are other sites in which the product is for sale and also not included in the royalties report.

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
I will prepare a response detailing some options.
This may take me a little while so please do not be concerned if you do not hear from me until later this evening.
Kind regards
AJ
Customer: replied 2 years ago.

ok many thanks - cwill be sending to my email or will i need to log onto the site?

regards

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
I will post my response on this thread.
Kind regards
AJ
Expert:  Alex J. replied 2 years ago.
Hi,
Thank you for your patience.
My apologies for the delay.
The first point to note is that if you are going to sue this company in any way you will have to instruct a forensic accountant at some point to verify that they have underpaid you (assuming that they will contest any claim). This is why it is important to try and at least estimate how much you are owed - if you can make a demand based upon a sensible estimate then you may be to settle the claim without a court hearing.
Secondly before you can consider suing them you will have to follow any dispute resolution mechanism contained in the contract - does the contract contain one?
Finally this is a dispute over royalties and payment - it is essentially a straight forward claim for money. https://www.gov.uk/make-court-claim-for-money/going-to-court - you can make a court claim here. As a starting point what I suggest you do is as follows - find a solicitor based in the UK http://solicitors.lawsociety.org.uk/ ask the solicitor to write a letter to this company demanding a full account of vital information e.g no of downloads full account of payment on i-tunes or equivalent. The letter should say that if you do not receive this you reserve the right to a) terminate the contract and b) take all action available to you to recover monies you believe you are owed. This letter must come from a solicitor, once the company see it is on headed paper of a solicitor they will know you have been advised and know your rights and therefore it gives the letter added gravitas.
Can you provide me with any further details of the contract? Would you terminate if they wont co operate?
Kind regards
AJ
Alex J., Solicitor
Category: Law
Satisfied Customers: 3557
Experience: Solicitors 2 years plus PQE
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