EMI Music Publishing has filed a legal action against AOL Time Warner, Metro-Goldwyn-Mayer and related entities for unauthorised use of songs from catalogues once owned by United Artists and MGM/UA Entertainment.
EMI contends that when it bought the catalogue in the 1980s, MGM/UA retained a licence for limited royalty-free uses of certain songs.
But now that the MGM film library is part of the AOL Time Warner empire, EMI alleges the company is using the songs across its television, film and online properties in ways that were never authorised. It seeking millions of dollars in damages.
For example, AOL Time Warner may use the song, We're Off to See the Wizardto promote the film The Wizard of Ozbut it is allegedly bending the rules by using songs from the film as background music for other promotional purposes on AOL, CNN or in Time Warner films without paying royalties to EMI.
"We tried to resolve this, but it fell on Hollywood deaf ears. We're asking the court to set a benchmark here so that these companies will pay for past uses and will not use them in the future without seeking a license from us," said EMI Music Publishing chairman Martin Bandier.