Trax Records is Facing Federal Copyright Infringement Lawsuit Over Unpaid Royalties

Music producers and pioneers Larry Heard (AKA Mr. Fingers) and Robert Owens have filed a $1 million federal copyright infringement lawsuit against Chicago-based Trax Records earlier this week. The lawsuit alleges that Trax Records fraudulently filed sound recording registrations with The U.S. Copyright Office by “falsely asserting that it owned the sound recording copyrights for those works.”

Heard’s involvement with house music goes back over three decades. He used to ride by the Warehouse Club, the club from which house music got its name, on 206 South Jefferson Street in Chicago. House music Legend Franky Knuckles used to play at the club, but Heard was too young to get in. Both Heard and Knuckles, worked with Trax Records.

Knuckles, who died in 2014, also felt he was not fairly compensated by Trax Records. In a 2013 interview with Resident Advisor, Knuckles called Trax Records “barnacles” alleging “Anytime I got some new product coming out they try and piggyback on whatever that it is that I’m doing to try and make whatever they can make off of it.”

Another artist Adonis M. Smith (AKA Adonis) alleges he was cheated by Trax Records. Smith stated on Facebook that Trax Records has “not paid me one penny in 34 years. Trax Records does not own any rights to my music. Tell all distributors to do not sell this record or any other of my songs from this horrible label.”

In an interview with 5 Magazine, Jamie Principle claims “From what I understand of the stuff that happened to some of the artists at Trax, they were signed to them. I’ve never been signed to Trax! So they literally just stole my stuff. They released everything that I’ve done!”

In another 5 Magazine interview, DJ Pierre of Phuture alleges, “Trax never paid me royalties.”

TaP Music Publishing, who is currently working with Heard and Owens, is helping to fund the lawsuit. They are asking “any such affected artists to reach out to us and we will endeavour to support them however we can.”

The timing of the lawsuit comes two months after the death of Trax Records founder, Larry Sherman. Sherman’s former wife Rachael Cain is the current president of Trax Records. Cain, who also goes by the name “Screamin’ Rachael,” was one of the first artists to sign with Trax Records. She took over managing the company in 2006.

Trax’s attorney, Rick Darke of Duane Morris LLP, states that Cain “has been fighting for 15 years to get artists like Heard and Owen royalties, citing a long legal dispute with a Canadian investor, Casablanca Trax Inc. Casablanca obtained the rights and licenses to music from artists like Heard, and later transferred the rights to another entity. Though Cain has since prevailed on appeal, the parties responsible have not paid up.”

Cain alleges “Since the very beginning I have been championing House music, Trax Records and our artists. As an artist myself I can totally understand and feel their frustration. Since 2002 Trax Records has had no control over the Trax classic catalogue which we intend to rectify. I would like them to know I have not been in control of the classics and have been fighting to get them paid.”

Heard states “It was so disappointing that my earliest ventures into the music business was with a label in the community that turned out to be dishonest, like with many other artists that we hear about all too often. We are simply seeking justice and fairness. Maybe our efforts will shed light on the many predatory practices that have been in place for a long time in this industry.”