Smashing Pumpkins Want a Little Ringtone Money

Posted by Eriq Gardner

Alternative rock stars Smashing Pumpkins is suing their record label, Virgin Records, for breaching its recording contract by improperly licensing its works as electronic transmissions including ringtones.

According to the complaint, filed in Los Angeles Superior Court, Virgin violated the terms of the recording agreement. That contract provided that "exploitation of any new technology...shall only be with your and our mutual consent." The contract also stated:

"You will have the right to approve all exploitation of Masters other than in the form(s) and sequence(s) delivered and other than as top-line sales through normal retail distribution channels. Accordingly, there shall be no exploitations of any kind of Masters, except as delivered for exploitation by you hereunder and under the Prior Agreement, and except as released prior to the Effective Date, without your specific written consent."

Here's a copy of the full complaint.

Interestingly, record labels and publishers have long been fighting over royalties to ringtones with the use of master recordings allowing record labels such as Virgin to enjoy the spoils of the multibillion dollar ringtone business.