Court Upholds State Laws by CLAUDE HALL by RADCLIFFE JOE and PAUL JAULUS NEW YORK - RCA Records
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08120 MARCH 25, 1972 $1.25 TWO SECTIONS, SECTION ONE A BILLBOARD PUBLICATION SEVENTY-EIGHTH YEAR The International Music -Record -Tape Newsweekly CARTRIDGE TV PAGE 33 HOT 100 PAGE 58 0 TOP LP'S PAGES 60, 62 RCA Bows 'Compatible' Anti -Piracy Legal Pot Boils Over; Discrete Disk Concept Court Upholds State Laws By CLAUDE HALL By RADCLIFFE JOE and PAUL JAULUS NEW YORK - RCA Records. who wenttothe matrix system SAN FRANCISCO-The Ninth ant's claim of a "right to copy" DALLAS-The first decision in whichunveils its long-awaited did so only because they'd been Circuit Court of Appeals here has was in no way supported by the fourfederaldistrictcourtsuits, quadrasonic albuminMay,will ledtobelieveadiscrete system ruled that payment of compulsory cases cited. challengingtheconstitutionality begin a massive campaign to line wouldn't be available for three to mechanical royalties as stipulated The court observed, "The de- andlegality ofstatestatutes up otherlabelsfor the discrete four years." in the Copyright Act of 1909, does fendantmayrecordappellants' against record and tape piracy, was album systemstartingaround Compatibility Factor notautomaticallylegitimizethe (Continued on page 4) rendered here in favor of main- April 1. Hugo Montenegrowill RCA Records discrete .quadra- operations of unauthorized music taining the Texas criminal law. probably be featured on the first sonic system eliminates any possi- duplicators. A federaldistrictjudgehere LP release. bility of double inventory,it was The court's landmark decision ruled Feb. 29 that the class action RCA Records president Rocco pointed out. The albums are com- was handed down March 13 fol- suit filed by the Independent Tape Laginestra, pointing out that quad- patible for existing stereo systems. lowingitshearing of an appeal Merchants' Assn. (ITMA), a group rasonic albums will be offered to Dearborn has ordered enough made by59publishersofthe Prepare Black of unlicensed tape duplicator firms, the consumer atthe same prices of a new harder vinyl to produce Harry Fox Agency,againstan against the state attorney general they were paying for stereo rec- 60.000 albums and will start press- earlier District Court decision in Crawford Martin and all local dis- ords,saidhe wastotallycom- ing quadrasonic albums before the favor of defendants. trict attorneys in the state, seeking mitted to the discrete album sys- (Continued on page 8) They include: Martin Stern and Gospel Promos a temporary restraining order halt- tem and that he feltit was the Pearl Rosner doing business as Na- By IAN DOVE ing enforcement of the state stat- most exciting advent in the record tionalManufacturingCo.; Don ute against tape and record coun- industry since the development of Gold doing business as Don Gold NEW YORK-Atlantic Records terfeiting, be dismissed. the 8 -track cartridge system. Increase N.Y. Co. and Don Gold Distributors; is declaring April "Gospel Month" Still pending before federal dis- He thought it would especially Designers' Lithograph; Dick Rich- spearheading their campaign with trict judges are three other recent giveclassical music new vitality. ardsdoing businessas8 -Track; a double album featuring Aretha casesfiledby James L.Fiske, Laginestra will begin a series of Push by UA Leland Broadcasting doing business Franklin and Savoy Records artist, attorney for ITMA, Washington. personal conferences with record at KTKT; Skaggs Drug Centers; James Cleveland together. CBS is In the District of Columbia, Su- label presidents to induce them to By MIKE GROSS Pick -A -Tapedoingbusiness as also getting behind black gospel- perior Sound Tape Co., Oklahoma go tothe discrete system. Record Alley and others. they are preparing a follow up set City,filedsuitinlateJanuary Bill Dearborn, director of record NEW YORK-UnitedArtists In reversing the earlier decision to their "The Gospel Sound" fol- operations for RCA, said that he Records is gearing its operation so againstMartin;JoeBush,Los that there will be increased activity made by the U.S. District Court lowingthesuccessofthefirst Angeles D.A.; Frank S.Hogan, will set up a series of sound dem- inPhoenix,Ariz.,theappellate Tony Heilbut compilation. N.Y. county D.A. and the state's onstrationsforvariousrecord in product area and product court pointed out that the defend- (Continuedon page 64) attorneys inthose states. labels beginning April1, ."includ- development emanating fromits district New York office. Bob Skaff, vice Ina Miamifiling, ITMA sued ing some .of those now committed RobertShevin,Floridaattorney to the matrix quadrasonic system president of the record company general, Richard Gerstein, Miami who've expressedinterestindis- and senior ranking officer in New crete. Some of the record labels York, has started the wheels roll- Mercury's O'Connell Sees D.A., and all Florida's local dis- ing for the buildup of the Eastern trictattorneys,seekingdeclara- operation having already concluded tory judgment and an injunction severaldealsandhasseveral Improving World Liaison against the Florida law. Russian Jukebox others in the offing. By EARL PAIGE Two weeks ago, ITMA filed suit Skaffhas already initiated infederalcourtinHarrisburg Business Grows drivesto meetartists,managers CHICAGO - Mercury Records gram subsidiaries and then by the against Pennsylvania A t t or n e y andtoevaluateproduct.Skaff will effect at least a331/2percent European companies. Whereas,it GeneralJ.Shane Cramer, Leroy By VADIM YURCHENKOV also plans to be in constant touch speed-upinreporting world-wide generally took nine months from Zimmerman of Dauphin County, and all the state's district attorneys. MOSCOW-The Russiancoin with Mike Stewart,president of accrued royalties to its new parent date of sale to final accounting to the record company who is based Polygram group as just one ex- artists, O'Connell hopes to cut this Because of the Harrisburg Seven operated amusement business con- trial dominating the local docket, tinuestoincrease,following the in Los Angeles. He also plans to ample of how the U.S. and Euro- to six months and eventually to a towardselectronic spend about one week a month pean firms can exchange expertise, quarterly basis. "The quarter seems hearing on the complaint has been initialshift (Continued on page 8) Mercury vice president and treas- the most usefulperiod of time transferred to Wilkes-Barre. amusements made in1970 when urer David O'Connell stated this around the world," he said. The Pennsylvania statute, Senate 40 U.S. and West European -made week. One Polygram contribution will bill #1017, makes it unlawful for jukeboxes and coin operated games (Continued on page 4) were shipped to Russia. Financing Aids Just back from a European trip (Continued on page 64) The first batch was introduced with Irwin Steinberg, president of by Sweden's Bo Billings and Co., Franchise Plan Mercury, O'Connell outlined sev- a Bally distributor who introduced eralcrucial developments in the them to Russia through the Czech By JOHN SIPPEL business "guts area" of Mercury's Mexico Hosts Global Execs Parkcentrumcompany, Billings' new direct link with the Polygram NEW YORK-There willbe About 50 percent of the attend- business contact and promoter in HOUSTON - Cleve Howard, group. large global contingent converging ance is coming from the U.S., rep- Eastern Europe. Previous to this founder -president of Budget Tapes Central in the new relationship on Acapulco for the International resentingeverykeymusiccity the amusement business in Russia and Records, nationalretailrec- is the total involvement in music Music Industry Conference (IMIC) center. On theregistrationrolls was limited to primitive outdoor ord store franchise program, has on the part of Polygram and the being held at the Acapulco Prin- from theU.S.and theinterna- parkinstallations - carrousels, obtained additional financial back- fact that Mercury now deals di- cess Hotel April 30 -May 6. tional scene will be representatives etc. ing,"inexcessof$1 million," rect with it rather than as before swings,rides, Therewillberepresentatives of record companies, music pub- Two amusement centerswere which will be used to extend the through North American Philips lishingfirms,artists,managers, chainandgenerallytightenthe (NAP). from every Latin American coun- producers, attorneys, and members (Continued on page 53) operation. One Mercury contribution will try,every European country,as sophisticationin well as a large representation from of the financial community. There Howard, who started the fran- derive from its willalso be representation from chise program here in early July, computer royalty reporting from the Far East. On the European ASCAP, BMI and SESAC. Special Report 1970, opening his own first store, multiple sources such as foreign end, many people are taking ad- now has 58 franchised storesin sales, record club sales and sales vantage of the special fares from A number of companies are tak- French Recording Studios 22 states. He projects a universe through domestic distributors. London which includes a one -week ing advantage of the "junior execu- of 150 more stores in the next 19 Under study is the feasibility of tripandatwo-weektrip.The tive"offer whichgives"middle InThis Issue months. modifying Mercury techniques for latter offers stops in Los Angeles management" personnel under the (Continued on page 64) useinitially by other U.S. Poly- and New York. (Continued on page 8) Advertisement After their success at the Troubadour and their rave Rolling Stone review, L.A. couldn't get enough of their album. Now they're