House music artists Mr Fingers and Robert Owens sue Chicago label Trax Records for unpaid royalties

By Emmanuel Legrand

Electronic music artists Larry Heard (a.k.a. Mr Fingers) and Robert Owens, supported by TaP Music Publishing, have filed a lawsuit in the the United States District court for the Northern District of Illinois against Chicago-based indie dance music label Trax Records, the self-proclaimed "original home of the house", and the label's President, Rachael Cain, for alleged unpaid royalties. Heard and Owens released various musical compositions and sound recordings in the 1980s through Trax Records and claim that they have been underpaid.

  According to the lawsuit, Trax Records has been “building its catalogue by taking advantage of unsophisticated but creative house-music artists and songwriters by having them sign away their copyrights to their musical works for paltry amounts of money up front and promises of continued royalties throughout the life of the copyright."

  Trax Records was co-founded in 1983 by Larry Sherman, who died in April this year, aged 70. According to the suit, Cain was one of the first artists signed by Trax Records and performed under the moniker of “Screamin’ Rachael.” She eventually married Sherman and became his business partner, and she now President of the company.

Absence of legal counsel

  Around 1985-1987, Heard said he signed four documents with “Precision/Trax Records” which, according to the lawsuit, was "at the time, was not a formal legal entity, but rather a trademark utilized by Sherman." Heard did not have legal counsel when he signed these documents, one of which assigned or transferred to Precision/Trax 100% “of all publishing rights and all right, title and interest in and to the copyrights" then possessed by Heard in the musical compositions 'Can You Feel It', 'Washing Machine', and 'Beyond the Clouds'.

  On several similar occasions, Heard signed documents assigning his copyright to Trax. "At best, the Precision/Trax Documents were ambiguous. At worst, they constituted unconscionable contracts of adhesion which would result in decades of revenue streams flowing only to Trax/Precision (or other entities formed and operated by Sherman and Cain), with Heard deriving virtually no economic benefit from their exploitation by Defendants," reads the lawsuit.

   Because of Defendants’ "deceptive acts or practices," Plaintiffs are asking for actual damages "in an amount to be determined at trial but believed to be greater than $1,000,000." In addition, Plaintiffs are asking for attorney’s fees and costs, and interest on its damages at the legal rate.

Seeking justice and fairness

  Billboard quoted Trax and Cain's attorney Rick Darke of Duane Morris saying that Cain had been fighting for 15 years to get artists like Heard and Owen their royalties. Apparently, a Canadian investor, Casablanca Trax Inc., obtained the rights and licenses to music from artists like Heard, and later transferred the rights to another entity. These rights have yet to be paid.

  "Rachael Cain has been fighting for a long time to get these artists paid," Darke told Billboard. "She just hasn't received the monies from the parties responsible in order to pay them."  Darke added that, since 2002, Trax Records "has had no control over the Trax classic catalogue which we intend to rectify. I would like them to know I have not been in control of the classics and have been fighting to get them paid."

   Reflecting on the legal procedure, Heard said: “After doing several releases independently, it was so disappointing that my earliest ventures into the music business was with a label in the community that turned out to be dishonest, like with many other artists that we hear about all too often. We are simply seeking justice and fairness. Maybe, our efforts will shed light on the many predatory practices that have been in place for a long time in this industry.” 

Disregard for artists

  Owens added: “Trax’s treatment of those artists on its label is notorious to those in the electronic world. Many of my friends and fellow artists have been similarly treated. Hopefully this lawsuit will end Trax’s reign of non-payment. I’m grateful to TaP for their support in bringing this long overdue claim.”

  Ben Mawson, co-founder of TaP Music, said he and co-founder Ed Millett "are delighted to be able to support their claim against Trax Records who have behaved abominably over the years to many artists signed to them. We would ask any such affected artists to reach out to us and we will endeavour to support them however we can. Hopefully those in control at Trax now decide to do the right thing, after many years of shocking disregard for their artists."