Has SC Finally Gone The Way of CB?

The Lone Ranger · Post by **The Lone Ranger** » Sat Feb 14, 2015 10:17 am

It has come to my attention thanks to SC's legal spokes person Jim Harrington that SC has turned it's legal efforts over to a new company Phoenix. This company will file any new lawsuits concerning the SC brand, that Kurt has assigned to this company his interests, as far as SC lawsuits are concerned. This new company promises to push even harder to bring all KJ's into compliance if using the SC brand.

The current certified hosts and disc based as well as any GEM operators are exempt from this new company's collection efforts. The host will no longer be able to get their libraries certified. If you want to use the SC product in your show it will cost $200.00 a month to license the library with no audit required. There is some vague reference to keeping the discs in good enough shape as not to bring the SC brand down in public performances.

Once again we have the threat of legal action being used to leverage hosts into paying $2400.00 a year for the right to use the SC product for commercial use. They say it is not extortion, well what is it then?

The Phoenix is a mythical creature who died and burst into flames and was renewed. Has SC simply gone the way of CB. When CAVS won it's lawsuit against CB, CB was foreclosed upon by it's creditors and was split into several other companies. It has been said they did this to avoid paying CAVS and to protect themselves against possible suits from the publishers.

SC has been locked in suits against their company from EMI and other publishers for failure to get the proper permission to reproduce copyrighted materials, and of course pay the necessary fees. It this Phoenix just a legal dodge to avoid having to pay pending suits by declaring bankruptcy or will they use the old foreclosure scam CB used and then turned over their legal process to PirateLLC, and continued trying to leverage settlements?

Post by **wiseguy** » Sun Feb 15, 2015 7:49 am

Nice informative post... thanks for the info. Do you have a link to the Phoenix policy on this? I have ceased to follow the SC saga as I have long ago stopped having anything to do with their music. That is the advice I offer to anyone. Replace your SC songs with other brands and be done with them. Sell all you SC discs to some home user or on eBay. You will survive very well with no SC music in your library.

The Lone Ranger · Post by **The Lone Ranger** » Sun Feb 15, 2015 8:09 am

Dear Wiseguy:

If you go to the Karaoke Scene forum website. Click on Karaoke discussions, click Karaoke Legalities & Piracy, click Sound Choice changes and new licensing program. This whole thing is explained by SC's lawyer and debated by various hosts. The discussion in now around six pages long. Sorry I can't produce the link since I'm not very good with the computer. This will at least give you the place to look for the information. I never used SC in my show either, since they are the only brand on the planet that seems to feel they need to ride the back of hosts, in order to obtain profitability. Have a great day.

P.S. did find a link you might want to look at.

https://pep.rocks/relaunch.php

Post by **wiseguy** » Sun Feb 15, 2015 11:27 am

Thanks... that link has pretty much all the information needed. The crux of it is that for the privilege of performing the karaoke songs you already paid for on disc, from a hard drive, you only have to pay them $199 per month. This is no longer about 1:1 compliance. I agree with your earlier sentiment... if that is not extortion, what is?

The Lone Ranger · Post by **The Lone Ranger** » Sun Feb 15, 2015 12:06 pm

It is ok not to use SC in a show to avoid having to pay the $199.00 a month. My dog is not in this fight since I'm retired from hosting and have been for over a year now. I had a thought if SC is able to sell or a assign their rights to and LLC. like CB did, and they are both for the most part defunct companies, will other LLC's crop up doing something similar? There are many out of production companies or orphans as they are called. DK, Music Maestro, Sweet Georgia Brown, Back Stage, etc, etc, etc,. Not to mention Piracy LLC. that sues for the CB label.

A nightmare scenario could develop were you would have to pay each LLC, that controls it's particular label. The net result would be there would be no longer any material available that a host would not have to pay to use if they have shifted their original discs.

You would be working for the LLC's and no longer able to put on a show that would make economic sense to an operator. The host would be in the same position as a sharecropper, or a poor peasant who has to pay at each stop some corrupt official or warlord to get your crops to market. When you finally get to market there would be nothing to sell.

Now I know why I retired, I'm just glad that I made mine and got out, without having to enrich others from my labor. I feel for those hosts that are still in the business. Only large multiriggers will be able to pay these fees. All of the hobbyists and small fry hosts will be squeezed out.

People wonder why the small business man is gone and only the large operations are left, this is one reason.

P.S. It just came to me that the hosts that licensed the GEM series have only 6,000 SC tracks available to them. The pirate that pays his 199.00 per month and uses his illegal HD with no audit could have the full 16, 500 tracks. True he is paying almost 2400.00 a year for a blank check. The GEM license costs a considerable amount also, either way for those who bought their SC product in good faith and shifted to a HD it is bad news.

Post by **wiseguy** » Sun Feb 15, 2015 2:01 pm

The scenarios you mention make it even more pressing that KJs get rid of their SC songs. The message needs to be sent that these bullying tactics are not going to work. If you allow yourself to be fleeced over the SC music what is to prevent other manufacturers from following suit?

The Lone Ranger · Post by **The Lone Ranger** » Sun Feb 15, 2015 7:02 pm

The answer of course is nothing prevents at least in theory the various LLC's from being formed by outsiders to the industry, for the purpose of shaking down every karaoke host with various karaoke libraries, as long as the owners of the trade mark follow CB and SC's example, and assign their rights to them for money. One host mentioned asking Kurt serious questions come Monday. I wonder if It would do any good? Already SC has sold it's production capacity off a long time ago, most of it's library is now owned by Stingray. Even GEM was manufactured in England, to use a loop hole in the copyright law, that has since been closed. If Kurt has sold both the administration of the legal process and the licensing of GEM to Phoenix, exactly what does he have left that he owns?

It would seem to me that Kurt is no longer involved with SC. Only his lawyer Jim Harrington is still on board now working for Phoenix. I guess that is why no matter what happens the lawyers always make out. Then the lawyers wonder why the average person dislikes them so.

I hope I'm wrong about more labels coming under the LLC's and their lawyers, wiseguy. Only time will tell if my nightmare becomes a industry reality. Reality what a concept.

Post by **wiseguy** » Sun Feb 15, 2015 7:59 pm

Like with anything, this will only continue if it is profitable. Kurt found out that what he tried wasn't working, and if enough KJs refuse to opt for this latest extortion attempt, it will not be profitable as well. Any KJ could just as easily opt for the karaoke cloud library of over 10,000 songs at half the $199 monthly fee that Phoenix wants. And of course everyone could go back to using discs if it comes to that.

The Lone Ranger · Post by **The Lone Ranger** » Mon Feb 16, 2015 8:30 am

What I really don't understand is why assigning your rights to another company. is an effective way to continue the fight for fair compensation for stolen product? The original owner of the property is the injured party. Not the Johnny come lately LLC. who thinks it can make a quick buck out of everyone's misery.

I think it comes down to a corporate shell game. I would not be too surprised to see SC shortly go into foreclosure or bankruptcy, since both CB and SC use the same legal counsel. I think the hand writing is on the wall SC lost their case with CAVS and were forced to pay. the straw that broke CB's back. Now they have more loses facing the company with the suits still pending with EMI and other publisher's and copyright holders.

I find it ironic that SC will be taken down for the very same reason they have taken others down for, obtaining protected material without getting permission and paying the proper fees. This shifting of assets to an LLC, is much like when a ship is sinking and the Admiral shifts his flag to another boat.
It is a ruse to avoid paying up and at the same time keep the legal process going, and collecting fees.

Post by **wiseguy** » Mon Feb 16, 2015 10:48 am

There's no doubt that SC will either receive some compensation from the Phoenix fees or they are avoiding having to shell out money. What pisses me off the most about all of this (even more than before) is that it is not even about 1:1 compliance anymore. It is purely about format shifting and Phoenix is using the same legal ploy of hiding behind the quality of the rips as it's justification. That was a bad court decision. It is so transparent. It's all about the quality of the ripped SC songs but if you pay the $199 monthly fee all you have to do is "promise" to rip them to a certain quality standard. No audit or proof required.

The Lone Ranger · Post by **The Lone Ranger** » Mon Feb 16, 2015 11:21 am

I'm sure wiseguy that as long as SC get's it's payoff, they will not enforce the quality aspect of the rips. Only when the host stops paying will the inspector come around. Once you are on their list and they know where you are, and you have signed the agreement to pay, you will have to keep paying, as long as you are a host. Just like gangsters have their list of people to collect from, for protection.

Post by **wiseguy** » Mon Feb 16, 2015 11:59 am

Of course you're right and all of this is possible because of a terrible court decision. They couldn't win a decision on the format shifting of purchased discs alone so they went after trademark infringement claiming that their logo could be displayed along with poor quality audio and graphics. I don't know how the court system works in this kind of case but that court decision needs to be overturned and an end put to this fleecing of legitimate karaoke hosts.

The Lone Ranger · Post by **The Lone Ranger** » Mon Feb 16, 2015 12:25 pm

At least in California Judge Wright of the Southern District got it right. He called SC's lawyer's on abusing the legal system, and cluttering it with frivolous lawsuits. Labeling them Intellectual Trolls bottom fishing for easy cheap settlements.

The Lone Ranger · Post by **The Lone Ranger** » Tue Feb 17, 2015 8:09 am

I just saw the court papers concerning the organization of the new Limited Liability Company called Phoenix, filed in North Carolina, filed back on Dec 22, 2014. Our old buddy Kurt J. Slep is listed as the manager/organizer concerning the articles of organization.

It is clear this whole process is designed to protect assets, just in what manner is unclear. Seems strange the a company owner would set up another company just to transfer assets to themselves. Unless of course the need for such a move would be to hide or protect assets.

Many reasons come to mind why such legal hocus pocus is necessary.

1. The SC name has been so damaged by their legal collection process, they want to improve their image by letting some LLC take the blame for the dirty work. It is a little late for that, CB set up Piracy Recovery LLC, so DTE would not be tarred with the collections black brush.

2 It could be that SC is going into foreclosure or bankruptcy and this is a way to protect assets.

3. Maybe in the court system word has gotten out about SC's questionable legal and collection practices and a new company coming in would fly under the judge's radar.

These are just a few possible reasons for this version of the old corporate shel game.

DanG2006 · Post by **DanG2006** » Tue Feb 17, 2015 9:43 pm

Even though I am exempt from it I still will be looking to replace precious SC tracks I have with new ones by flooding Karaoke version with requests for those particular songs. I am actually certain they can do a better job on the songs. I Am actually going to pick up Runaway and In These Arms by Bon Jovi from tricerasoft as I have ten credits left in my JustKaraoke songs store.