More Details On Spanish Music Collection Society Corruption: Accused Of Stealing $550 Million From Artists
from the lovely-people dept
Late last week, we wrote about the corruption-driven raids on the Spanish music collection society SGAE, and the arrest of its boss, Teddy Bautista. Over the weekend, more details have come out. Jose Luis Campanello points us to the news that officials believe that SGAE execs may have diverted approximately $550 million (US) to their own (or others) profits, at the expense of the actual musicians who should have received that money (Google translation of the original Spanish).TorrentFreak has additional details as well, about the scheme that seems extremely questionable. Basically, the accusations are that SGAE hired some "consultants" to set up a supposedly independent subsidiary. The thing is, some of those consultants were relatives of SGAE execs:
The complaint alleges that SGAE operatives set up companies and used revenue destined for artists to generate profit for themselves and their families, and that money bound for artists living abroad was diverted to personal Swiss bank accounts.This all sheds additional light on SGAE's rather fanatical approach to increasing who it could collect the digital levy from. It sounds like they weren't necessarily looking for more money from artists, but potentially for themselves...
At the center of the storm is SDAE, the digital rights arm of SGAE. Although a notionally separate entity, SDAE is fully operated by SGAE. It appears that when SDAE was being set up, SGAE hired a for-profit company called Microgenesis as consultants.
Microgenesis describe themselves as �a team of specialists in engineering, consultancy and development, managed by individuals with established experience in the fields of intellectual property, as well as the culture and entertainment industries.�
Microgenesis operated a number of companies which provided various services for SGAE and SDAE, some of them suspiciously registered at SGAE/SDAE�s own office address. The problems only deepen when one learns who is behind Microgenesis.
Jose Luis Rodriguez Neri is Director General of SDAE and ex-director of SGAE. His wife, Maria Antonia Garcia Pombo, is the ex-president of Microgenesis. Partner-Chief Legal Officer of Microgenesis is Eva Garcia Pombo. She is Neri�s sister-in-law.
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Filed Under: collection society, corruption, music, spain, teddy bautista
Companies: sgae
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You paying attention trolls?
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It's obviously ok to rip off musicians by illegally downloading the music they are offering for sale because it *supposedly* pales in comparison to this "theft".
Right Mike?
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Mike has never said it is ok to rip off musicians through filesharing, but for some reason the part of your brain that should understand that seems to be defective.
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Awesome believable story, bro.
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That busts the 1 DL = 1 missed sale. Unless the average teenager is much wealthier than I thought.
As for the music that I "listens to regularily" - yep those bands meet my criteria of quality and are supported accordingly. I.e. I buy their stuff.
You see, I'm one of those annoying people that make up the "spends money on music because of piracy" demography that the MAFIAA is so uncomfortable with.
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Recording industry middlemen embezzling the artists' money is theft -- real theft that does not benefit the artists in any way. And fraud is certainly not legal in Spain.
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They never really cared about artists, they care only about their own profits.
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The RIAA and their foreign counterparts need to scream about the "losses" caused by piracy so they can explain the millions of dollars they keep pocketing.
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> downloading the music they are offering for sale
> because it *supposedly* pales in comparison to this "theft".
Is that the new position you are taking? Or are you quoting it from somewhere? Did someone say that? I surely never read it anywhere else.
> Right Mike?
The power of words written on a blog are truly amazing. Mike is the focus of your attention. You never miss an opportunity to slander, accuse, or insinuate.
Historically it has always been easier to attack the messenger. It is always an option to do so when you have nothing else you can say.
What? Nothing to say about artists? Nothing to say about the substance of this article. Nope. It's just Mike, Mike, Mike. Piracy. Put words in his mouth.
Your trolling is really pathetic.
It's nice to have a permanent documented record of the ones who argue for the dinosaurs and flat earth.
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Yet when there are actual dollars stolen you feel you must put the word "theft" in quotes.
Telling. You shills keep getting more and more desperate.
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Actually...
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the word from surely should be for. Just shows these societies dont care about the artists at all.
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Typica
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'yay for getting busted on that... but... isn't that basically standard behaviour for collection societies in general?'
i guess the issue here is that they were using non-standard means of getting that money into their pockets, rather than just conspiring with their superiors to get insane payouts for finding more ways to screw everyone over.
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What a surprise.
At least in Spain the government appears to be fighting that kind of corruption. Here in North America the governments actively participate in the extortion racket.
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It all makes sense now
They're just trying to help the artists! It makes sense to me now.
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puede alcanzar
So they aren't accused of stealing 550 million. They are accused of working a diversion plan against a fund that could have up to 550 million in it.
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Among the allegations is that unions Jose Luis Rodriguez Neri, a senior executive of the SGAE, of allegedly diverting tens of thousands of dollars to companies owned.
In a scam of 550 million, do you honestly think that they would report "tens of thousands" as significant?
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Sort of like getting an extra $20 for the cash machine, and claiming that you stole all the money in the bank.
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It then goes on to say they are believed to have defrauded up to $550 million. It doesn't say they defrauded $20 from a $550 million pot like you claim.
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Do you have a link to the "original story" you are working from? Every one I see so far makes reference to the size of the fund, but few seem to specify how much was "stolen".
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I Blame the Artists
So yeah, I blame the Artists. If they had chosen the wiser path, and done this on their own, they wouldn't need a label, and a label they wouldn't be signed to wouldn't be stealing their profits.
Or to distill this for any Artists who may be reading: Wake up and smell the savings guys! The suits in Hollywood and Nashville are giving you 50 cents every time they sell a $20 CD with your hard work on it! A record contract is NOT the answer! Your fans ARE the answer!
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Sums up your masters' attitude nicely. No wonder your business model is failing.
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Those "fans" aren't fans... they are just leeches.
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In that case you need to A) Focus on turning them into fans, or B) Stop worrying about them.
Forcing them to pay won't work because they wouldn't pay.
It makes perfect logical sense, which is why the labels won't listen to it.
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Treat your fans like shit and they will not pay you money.
Treat your fans with respect and they will pay you.
It's been proven on this site time and again. If you can't comprehend what is written here, we can't help you.
Go take a remedial reading comprehension course and come back.
(Or better yet, find a job that doesn't require you to lie to get paid, shill.)
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Treat your fans with respect, and they turn around and treat your work like shit. They take copies, they give them away, and they don't intend to ever support you.
The lack of respect for artists is huge. It's incredibly disappointing.
Perhaps you might want to read what I post (as opposed to what you wish I posted) and then you might understand my views.
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Then I went out and purchased them, all of them, all four books. George R. R. Martin has made a fan for life through his work even though I "stole" from him and then gave him my money.
It's an ecosystem but keep treating it like it's not.
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that's what i think everytime i think of the MAFIAA
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That's what you posted. And yet, there are examples, time and time again, that say that you are at least partially incorrect. Jamendo, for one. Artists can actually make a living from Jamendo - Granted, it won't be the kind of living Keith Richards did, but it will be doable.
Jamendo has both CC and pay-for music. And yet, it still doe a decent job of promoting people, considering it has almost no pull with radio stations.
Perhaps you might want to read what I post (as opposed to what you wish I posted) and then you might understand my views.
I think he understood them well enough. I do, however, have a question: are you a 'failed' musician that was signed to a major label?
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"Again with the reading comprehension difficulties?"
Your reply:
"No reading problems."
Thanks for proving my point, you fucking idiot.
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That's because the market dictates the cost, you selfish, entitled whiner. Supply the people what they want, or stay out of the way and let others do it.
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