From the MCRFB NEWS archive: 1964
Beatles Heat Flare In Court
NEW YORK — Vee Jay Records filed a motion in New York’s Supreme Court against both Capitol Records and Swan Records here Friday seeking an injunction restraining the companies from manufacturing, distributing, advertising or otherwise disposing of recordings by the Beatles.
The motion was brought before Judge Mullen in Supreme Court, who reserved decision on the case.
The case is but one of many suits and counter-suits being bandied about the courts over the sensational young singing group from Liverpool. END
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(Information and news source: Billboard; January 25, 1964)
From the MCRFB NEWS archive: 1964
Beatles Heat Flare In Court
CHICAGO — The Beatles, the nation’s hottest recording property today, are becoming the object of the nation’s hottest lawsuits, at least as far as the recording industry is concerned.
The rock-and-rolling English group has a series of singles and LP’s out on three labels–Capitol, Vee Jay and Swan. Each of the offering is bounding up the national charts like Topsy.
And each is becoming involved in a series of suits and counter-suits between the various companies involved.
Most confused are the nation’s dealers and one-stops, many of whom have received telegrams from one or more of the parties, noting that appropriate legal action will be taken if they persisted in selling the others’ products.
The matter is far from settled, but as of Billboard press time, Capitol was granted an injunction in Cook County Circuit Court restraining Vee Jay from manufacturing, distributing, advertising or otherwise disposing of the Beatles’ recordings.
The Capitol injunction is good for thirty days and Vee Jay is slated to file an answer next Wednesday.
Vee Jay, meanwhile, has filed a suit seeking a similar injunction against Capitol and Swan, with a hearing slated for New York’s Supreme Court before Judge Saul Streit, last Friday.
Under the Capitol injunction, “Vee Jay, it’s agents, attorneys and servants” are prevented from selling or advertising Beatles’ products.
Presumably, and according to Vee Jay sources, the injunction does not apply against dealers, one-stops, rack jobbers and even distributors who might already have the records in stock.
According to Jay Lasker, Vee Jay executive vice-president, “we shipped an awful lot of records, more than Capitol.”
Capitol attorney, Sidney Zatz, however, has indicated that “steps could be taken” against dealers who persisted in selling the Vee Jay product, though he did not specify what this would entail.
The product causing all the fuss is:
Capitol, “I Want To Hold Your Hand,” a single, is at No. 3 on Billboard’s Hot 100 this week, and “Meet The Beatles,” an L.P.
Vee Jay, “Please Please Me,” a single, and two LP’s, “Introducing The Beatles,” already distributed, and “The Beatles and Frank Ifield,” were not yet shipped but ready to go.
Swan, “She Loves You,” a single, is breaking into Billboard’s Hot 100 in position 69.
Neither Vee Jay nor Capitol is seeking damages as of this date, though a Capitol spokesman did not rule out the possibility of this taking place at a later date.
In its motion for injunction, Capitol claimed exclusive U.S. distribution rights to all recording by the Beatles. The label accused Vee Jay of manufacturing and selling albums introducing the Beatles in violation of Capitol’s exclusive right.
Capitol contended in its suit that Vee Jay’s rights were canceled last August.
The suit notes that initially Vee Jay was licensed by Trans Global, a New York firm licensed to distribute EMI products. EMI has the original Beatles’ contract.
Capitol claims that Trans Global canceled its contract with Vee Jay August 8 because of non-payment of royalties. Trans Global allegedly relinquished its rights to EMI with the latter than returning them over to Capitol.
Vee Jay, meanwhile, contends that it has a five-year contract with the Beatles and that it is definitely not in default for failure to pay royalties.
Capitol’s suit notes that the label has spent $50,000 in extensive nationwide promotions of the Beatles recordings. END
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(Information and new source: Billboard; January 25, 1964)
