Entertainment & Entrepreneurship

Cher, the Rock Legend and heir to Sonny Bono's musical legacy, has sued Universal Music Group according to a report by The Hollywood Reporter. According to the California state lawsuit just filed, UMG has used the well known tricks of selling albums through its controlled subsidiaries to avoid royalty obligations to Cher and song producer Snuff Garrett. In addition to Cher and their music producer, Bono's second wife Mary Bono-Mack and Bono's children also have an interest in the royalties.

Of course, these tactics are nothing new for the music industry. But as Cher's attorney reportedly commented, "Universal is playing a game of catch-me-if-you-can with one of the most popular and iconic artists of all time."

Still, at a time when the music industry is under intense scrutiny for its anti-piracy efforts and hoping to reform itself into a less parasitic industry, lawsuits like this which highlight the extent to which the labels take advantage of their artists are particularly embarrassing. If the allegations are true, the UMG should go well beyond a mere accounting correction and think about a more representative business for its artists.

As a result, I expect the stakes may be much higher than other cases where "accounting irregularities" are identified by their victims.