Artists like TLC and Toni Braxton, who have filed for bankruptcy as part of a move to get out of their contracts, may want to call their Congresspeople.
HR 3150, a bankruptcy reform bill now before the House of Representatives Judiciary Committee, has language that would specifically prevent recording contracts from being thrown out in bankruptcy proceedings. That language was inserted into the bill after hearings held at the behest of the Recording Industry Association of America, which represents the major record labels. California Congresswoman Maxine Waters says that provision, "smells like a very, very special interest provision."
The RIAA, which has agreed to negotiate compromise language, says the measure is necessary because of the unique nature of the record business. The RIAA also says current laws let, "unscrupulous lawyers extort record labels."
The bill could be voted on by the end of the month.
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