Here is an excerpt from an article by Janis Ian on internet filesharing. She gives some details of how the RIAA treats new artists.
"The normal industry contract is for seven albums, with no end date, which would be considered at best indentured servitude (and at worst slavery) in any other business. In fact, it would be illegal.
A label can shelve your project, then extend your contract by one more album because what you turned in was "commercially or artistically unacceptable". They alone determine that criteria.
Singer-songwriters have to accept the "Controlled Composition Clause" (which dictates that they'll be paid only 75% of the rates set by Congress in publishing royalties) for any major or subsidiary label recording contract, or lose the contract. Simply put, the clause demanded by the labels provides that a) if you write your own songs, you will only be paid 3/4 of what Congress has told the record companies they must pay you, and b) if you co-write, you will use your "best efforts" to ensure that other songwriters accept the 75% rate as well. If they refuse, you must agree to make up the difference out of your share.
Congressionally set writer/publisher royalties have risen from their 1960's high (2 cents per side) to a munificent 8 cents.
Many of us began in the 50's and 60's; our records are still in release, and we're still being paid royalty rates of 2% (if anything) on them.
If we're not songwriters, and not hugely successful commercially (as in platinum-plus), we don't make a dime off our recordings. Recording industry accounting procedures are right up there with films.
Worse yet, when records go out-of-print, we don't get them back! We can't even take them to another company. Careers have been deliberately killed in this manner, with the record company refusing to release product or allow the artist to take it somewhere else.
And because a record label "owns" your voice for the duration of the contract, you can't go somewhere else and re-record those same songs they turned down.
And because of the re-record provision, even after your contract is over, you can't record those songs for someone else for years, and sometimes decades.
Last but not least, America is the only country I am aware of that pays no live performance royalties to songwriters. In Europe, Japan, Australia, when you finish a show, you turn your set list in to the promoter, who files it with the appropriate organization, and then pays a small royalty per song to the writer. It costs the singer nothing, the rates are based on venue size, and it ensures that writers whose songs no longer get airplay, but are still performed widely, can continue receiving the benefit from those songs. "
How can they call anyone else a pirate? Note where it says that artists only make money off megahit cd's or if they survive there initial 7 record contract.
The whole article is here
http://dailynews.yahoo.com/r/fcweb/Tech%2F...rnative%20view/*http://www.janisian.com/article-internet_debacle.html