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George Gershwin’s heirs are suing Warner Music for at least $15 million for the underpayment of royalties and other accounting failures. They are taking issue with Warner’s liberal licensing of Gershwin’s music outside of the US and Canada, in addition to ballets and concert grand rights. Billboard has the scoop:

According to the complaint, Warner Music is contractually required to hand over all net income, which is defined as gross receipts minus a 15% administration fee. The plaintiffs allege all sorts of ways that Warners failed to make a full accounting and took too much deductions and allowed too many commissions. The lawsuit also takes issue with how the music giant has booked foreign revenue, a hot issue in the music law world.

... Represented by attorneys Brian Caplan and Jonathan Ross, they are now demanding at least $5 million in compensatory damages for breach of contract and at least $5 million in compensatory damages and another $5 million in punitive damages for breach of fiduciary duty.

Warner declined to comment on the matter.




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