Settlement between states and music distributors/retailers to result

Journal Record, The (Oklahoma City), Feb 24, 2004 by Journal Record staff

More than 33,000 Oklahomans will receive almost $464,000 from a settlement reached between the attorneys general for 40 states and three territories and five of the nation's largest distributors of recorded music and three large retailers.

In addition to the individual consumers who filed for restitution, Oklahoma's public libraries will receive more than 67,600 CDs which will become available for public use, said Attorney General Drew Edmondson. The CDs will be a mix of all types of music including classical, pop, jazz, gospel and rock.

The settlement, reached in September 2002, was the result of an August 2000 lawsuit in which the attorneys general accused the distributors and retailers of entering into illegal conspiracies to increase the prices of recorded music and reduce price competition among retailers.

The attorneys general named music distributors Bertelsmann Music Group, EMI Music Distribution, Warner-Elektra-Atlantic, Sony Music Entertainment, Universal Music Group and retailers Transworld Entertainment, Tower Records and Musicland Stores in their lawsuit.

Under the terms of the settlement, consumers who purchased CDs, cassettes or records between Jan. 1, 1995, and Dec. 22, 2000, were eligible to file a claim for restitution. Nationwide, about 3.5 million consumers filed claims prior to the March 2003 deadline, Edmondson said.

The settlement is valued nationally at more than $142 million, with the defendants agreeing to pay $67.375 million in cash and $75.5 million in free CDs. About 5.5 million CDs will be distributed nationally.