Babygrande Records Sued Over Royalties
By NICK MCCANN
(CN) - A New York marketing firm says Babygrande Records owes it at least $200,000 in royalties for promoting rapper Wiz Khalifa's 2009 album "Deal or No Deal," which has sold more than 100,000 copies.
Malbon Brothers Farms, a marketing firm, says it signed an agreement with Babygrande Records in May 2009 to distribute "Dopium," an album by Wu-Tang Clan member U-God.
The agreement provided that Babygrande would pay Malbon Brothers 90 percent of net profits from the commercial use of "Dopium."
In October 2009, the companies amended the agreement to require Babygrande to pay Malbon Brothers 20 percent of profits from the Wiz Khalifa album "Deal or No Deal," Malbon Brothers says.
Babygrande allegedly gave Malbon Brothers an accounting statement in January of this year that claimed Malbon Brothers only made $8,700 from "Deal or no Deal." Malbon Brothers says it told Babygrande founder Charles Wilson that number was inaccurate.
"Defendant Wilson informed Plaintiff that its 20% fee was reduced because Defendant Wilson decided to cross-collateralize the expenses Defendant Babygrande incurred in manufacturing, distributing, selling and otherwise exploiting other musical recording albums Defendant Babygrande distributed for Plaintiff," according to the complaint in New York County Supreme Court.
By applying losses from one of Malbon Brothers' licensed albums to its other albums, Babygrande and Wilson breached the parties' agreement, Malbon Brothers claims.
Malbon Brothers seeks $200,000 in damages. The company is represented by Paul Chin.