Caveat: One of the stipulations in the settlement is that there is a finite limit to the amount of cash which will be distributed:
QUOTE
What Benefits are Available? The Defendants have agreed to pay a combination of cash and non-cash consideration. Defendants' combined cash payments total $67,375,000. In addition, Distributor Defendants will provide $75,700,000 worth of prerecorded music compact discs.
Cash Distribution The cash paid by the Defendants, after the payment of attorneys' fees, litigation and Settlement administration costs, shall be distributed to consumers who purchased Music Products. The number of claims filed will determine the actual amount of the individual refund but will not exceed $20.00 per claimant. If the number of claims filed would result in refunds of less than $5.00 per claimant, there will be no cash distribution to individual consumers. Rather, the cash portion of the Settlement shall be distributed to not-for-profit, charitable, governmental or public entities to be used for music-related purposes or programs for the benefit of consumers who purchased Music Products.
Non-Cash Consideration The compact discs will be distributed in each State,Territory, and Possession to not-for-profit, charitable, governmental or public entities to be used for music-related purposes or programs reasonably targeted to benefit a substantial number of persons who purchased prerecorded music compact discs, cassettes or vinyl albums from one or more retailers. The amount of product each State receives will be in proportion to that State's percentage of total population of the United States and its Territories and Possessions. All Defendants have also agreed to various injunctive provisions relating to the adoption and implementation of certain types of retail advertising and pricing policies.
But $67,375,000 is a lot of money, right? Well, the "Cash Distribution" clause states that if the individual refund amount falls below $5.00 per claimant "there will be no cash distribution to individual consumers." Five dollars into $67,375,000 gives room for a grand total of 13,475,000 claimants; any more than that and there is suddenly a lot less paperwork for the industry. Is it any surprise the settlement is being so widely publicized?
Effectively, this means that if
everyone signs up as a claimant, nobody (no individual, that is) receives anything. Instead, the money will go to fund music programs for public libraries, daycare centers, shelters... in short, it could become one of the most charitable acts with which the music industry has ever been associated. Not counting Payola, of course. B)
- M.