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September 19, 2007

R.I. nonprofits get money from music biz. settlement

Six Rhode Island nonprofits are each getting $2,905 under settlement of a multi-state anti-trust lawsuit that accused music distributors and retailers of conspiring to increase prices people pay for recorded music.

Providence CityArts for Youth, the Providence Black Repertory Company, Blackstone River Theatre in Cumberland, the Chorus of Westerly, Newport’s List Academy of Music and Arts, and the Kent County Arc/J. Arthur Trudeau Memorial Center in Warwick each received a check last week, Attorney General Patrick C. Lynch's office announced today.

The money must be used for music-related programs.

“The six recipients of this funding, all of whom are required to use the money for music-related programs, serve a wide spectrum of our Rhode Island residents, including inner-city youth and people with developmental disabilities,” said Lynch.

As of today, 15,000 Rhode Island consumers who filed claims have gotten a total of about $150,000. The settlement terms also included distributing 20,000 CDs, valued at $275,000, to the state's public schools and libraries.

The money is the last to be distributed, under court order, stemming from the federal suit filed several years ago.

Rhode Island was among 42 states to sue, according to the attorney general news release. Defendants were music distributors Bertelsmann Music Group Inc., EMI Music Distribution, Warner-Elektra-Atlantic Corporation, Sony Music Entertainment Inc., and Universal Music Group, as well as three national retail chains: Transworld Entertainment Corporation, Tower Records, and Musicland Stores Corporation.

The defendants denied the allegations.

Under the settlement, the defendants agreed to an injunction "whereby they would not engage in sales practices that allegedly led to artificially high retail prices for music CDs," Lynch's office said.

-- projo.com staff writer Michael P. McKinney

Posted by Mike McKinney  at 11:46 AM | Permalink

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