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TheBuzz
Erika Engle
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Hawaiian royalties at risk without quick action
DOZENS of Hawaii recording artists -- or their estates -- are due untold thousands of dollars in performance royalties and a forfeiture deadline is looming.
Never mind the 22 shopping days until Christmas. Only 13 days remain for recording artists in Hawaii and elsewhere to register for royalties racked up between Feb. 1, 1996 and March 31, 2000. After that, the money will be forfeited, according to Washington, D.C.-based SoundExchange Inc.
Royalties earned since then will continue to be held and ultimately paid out by SoundExchange, the nonprofit organization designated by the U.S. Copyright Office to collect money for performers and copyright holders -- usually record companies.
"These are relatively new rights," said SoundExchange Executive Director John Simson. Organizations such as ASCAP, BMI and SESAC collect royalties for songwriters, but for years, "if you were the performer, you got nothing."
The new royalties law took effect in 1996 and, recently, some artists owed as much as $10,000 for use of their music on the Internet or satellite radio have received checks. Performers owed lesser amounts are being sought, but SoundExchange doesn't have valid addresses for all would-be recipients.
The Mountain Apple Co. and the Pacific Northwest Chapter of the National Academy of Recording Arts and Sciences have helped SoundExchange find many artists, but dozens still appear among thousands of unpaid artists listed on the SoundExchange Web site.
All SoundExchange needs to send out a check is a valid address, but if the official paperwork is not filed, 30 percent of the payment will be sent directly to the Internal Revenue Service for tax compliance. Properly filed paperwork will net full checks, but the artist will be responsible for the taxes, Simson said.
John Gruhler, general manager of music distribution company Aloha Music International, was alarmed to hear of the quickly looming deadline. His company distributes music by Na Leo, Henry Kapono and Ho'okena, to name a few.
"This is an income stream that needs to be kept, in order to keep this industry vibrant," he said. He notes that many performers still maintain day jobs in order to support their families.
Artists can check for their presence on the unpaid artist list at www.soundexchange.com, by clicking on the Featured Artists link, or by calling 202-828-0120.
Erika Engle is a reporter with the Star-Bulletin. Call 529-4747, fax 529-4750 or write to Erika Engle, Honolulu Star-Bulletin, 500 Ala Moana Blvd., No. 7-210, Honolulu, HI 96813. She can also be reached at:
eengle@starbulletin.com