Thomas v. Gusto Records, Inc.
United States Court of Appeals for the Sixth Circuit
939 F.2d 395 (1991)
- Written by Eric Miller, JD
Facts
Singing group the Shirelles (plaintiffs) and singer B. J. Thomas (plaintiff) (collectively, the artists) entered into contracts with Scepter Records, Inc., whose catalog was later acquired by Gusto Records, Inc. (Gusto) (defendant). The contracts were silent on the issue of royalties from the domestic licensing of the artists’ songs. The artists brought suit against Gusto and a related enterprise, G.M.L. (defendant), seeking unpaid royalties. The district court accepted testimony from the artists’ expert witness establishing that musicians generally receive 50 percent of royalties from licensing to third parties. The court ruled in favor of the artists. Gusto and G.M.L. appealed, contesting the amount awarded. The United States Court of Appeals for the Sixth Circuit granted certiorari.
Rule of Law
Issue
Holding and Reasoning (Martin, J.)
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