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Metallica Sues Elektra Records Over 1984 Contract

Strategic Insights

— 1 min read

Metallica, one of the biggest-selling heavy metal acts in the nation, has filed a lawsuit against Elektra Records, seeking to release the band from its long-term contract with the company. The lawsuit, filed on Tuesday in San Francisco, claims that the contract signed in 1984 is illegal under California law, which limits personal service contracts to seven years. The band's attorneys argue that the original contract between Metallica and Elektra was not measured in years but called for the band to record seven albums for the label. Despite strong record sales, the group did not try to renegotiate the terms of their contract until late last year.

Key Takeaways:

  • Metallica has filed a lawsuit against Elektra Records, seeking to release the band from its long-term contract.
  • The lawsuit claims that the 1984 contract is illegal under California law, which limits personal service contracts to seven years.
  • The original contract was not measured in years but called for the band to record seven albums for the label.
  • Metallica has released four albums since 1984, which have sold over 40 million copies worldwide.
  • The band did not try to renegotiate the contract until late last year, despite strong record sales.
  • The contract was negotiated by Elektra's former CEO, Robert Krasnow, who has since left the company.
  • The band's attorneys argue that Robert Morgado, Krasnow's replacement, refused to abide by the terms of the agreement.
  • Elektra has threatened to challenge the band's right to invoke the seven-year limit on contracts by claiming that the company's contracts are not governed by California law.
  • The case has sparked speculation that it may be settled out of court to prevent a flood of similar lawsuits by artists unhappy with their contracts.

Statistics:

  • Over 40 million copies of the band's albums have been sold worldwide since 1984.
  • 4 albums have been released by Metallica since 1984.
  • The original contract between Metallica and Elektra was signed in San Francisco, where the four band members live.
  • California law limits personal service contracts to seven years.
  • Time-Warner, Inc. is the parent company of Elektra Entertainment.

Sources:

  • "Metallica Sues Elektra Over Contract" (New York Times, Sept 29, 1994)
  • Dinitz, Jody Graham, Attorney for Metallica (personal communication, no date)
  • "Elektra Entertainment Records" (Time-Warner, Inc., 1994 Annual Report)

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