Interesting Tim O'Reilly article.

From: Wayne M. Smith <wmsmith_at_earthlink.net>
Date: Fri Dec 13 23:47:00 2002

> At 09:12 PM 12/13/02 -0800, you wrote:
> >Every recording contract with a participation clause has an audit provision
in
> >it that allows the artist to come in with their own auditor/accountant and
> >have
> >full access to the books. Same is true in the movie biz. So I don't really
> >know what you're referring to.
>
> -BZZZTTTT- Wrong answer... the recording industry contracts state that
> Yes, you can ahve your contract audited, but only with a list of 'approved'
> auditors, as a matter of fact if you show your contract to ANYONE you are
> in violation of the contract.

I don't think that's right. There are restrictions that prevent hiring an
auditor on a contingency fee basis, and using an auditor who is performing an
audit of the same company on behalf of another artist at the same time. I have
never heard of the "approved list" you mention.
Received on Fri Dec 13 2002 - 23:47:00 GMT