Shanachie Records
(Enterprise Corp., 37, E. Clinton Street, Newton, N.J. 07860 U.S.A.)
=
U N S C R U P U L O U S     RECORD – COMPANY

I.) B O O T L E G G I N G………………………………………………………………………………..            1

II.) NOT PAYING MECHANICAL RIGHTS…………………………………………………………       11

III.) DISREGARDING CONTRACTUAL OBLIGATIONS………………………………………    13

is Shanachie’s business. (Shanachie Enterprise is partly owned by Koch International)

TRUE FACTS DOCUMENTED à SEE THE FOLLOWING REPORT

We invite you to study the facts hereafter and judge for yourself that such a CASE OF BLUNT THEFT (Breach of contract) & BLATANT DISGRACE TO THE PROFESSION violates all ethical rules and conventions in the recording industry. Shanachie’s offence calls for intervention on a priority level, either

– by public information via the medias,
– by warning concerned organisations such as producer-associations etc.,
– by boycott of radio and/or TV or
– by sanctions from copy-right institutions (Harry Fox, BMI etc.)

Only by this means more damage can be prevented, and those who are finally the ones representing the sole existential grounds of such industry may be protected in the future.

If there is anybody out there that want to take this particular issue further, we gladly submit you all the individual pages mentioned hereafter.
From our side, we decided to abandon this dirty business with disgust and concentrate on music only. Hence, our productions are not found anymore on the standard circuit but only via a few exclusive friends who run little distributions and – of course – on this very homepage!

Under the
– Right margin’s numbers you will find the evidences documented as a support to the accusation

Since beginning of the relation between Shanachie (interlocutor: Randall Grass) and Mensch, Shanachie is acting entirely against written mutual licence agreement. Punctual answers are delayed; precision in accounting is lacking, transparence is blurred, obviously to by-pass contractual obligations. Despite repeated requests, Shanachie has never provided an adequate royalties-statement…………………………………………………………………………………………………..1

Instead Shanachie only and ever reverts with the classical delaying tactic: soon, within shortly, at given time etc.

Now, enough is enough!

Early 1991, Mensch Music released from its workbench a limited and numbered CD (500 copies) on the internal house label Mensch Records with 16 preliminary tracks:

Peeni Waali                       Beacon of Hope                      Licht & Stein
Paper Mensch                   A No Nottn                             Satin Doll
Mini Mali                           Ricochet                                 Irish Irie
Rockaman Soul                 Très Gai                                 Skarab

+ the bonus tracks

Rockaman Dub                  Version of Hope                     Peeni Waali (Version)
A No Nottn Dub

The compositions were duly registered at
– SUISA, Switzerland
– the Register of Copyright, Washington, USA……………………………………………………       3

The CD “PEENI WAALI” was sent as promo to potential licencing partners.
Eventually, Shanachie manifested interest (june 3, 1991)……………………………………          4

After detailed discussions, on June 1, 1991 a preliminary contract………………………..      5
was established. After several revisions a final licence  was mutually
signed early 1993 ………………………………………………………………………………………….      6

Between preliminary scetch and final contract, several points were
amended such as:

Shanachie agrees in writing (september 4, 1991)…………………………………………… 8
1. the orignal 16 track CD (limited Mensch pre-release for Promo) is
shortened down to 13 tracks, i.e. 3 of the bonus-tracks will be left
out.
2. “Très Gai” is substituted by another track.

On October 24th 1991 tapes and lithographies (13 tracks and relative
detailed technical data-sheet) is despatched by registered mail…………………….                   9
àCost of these USA-specific design and mastertape = 2 people, 4
months work: Sfr. 40’000.–
àThe american release cannot and will not be identical to the limited edition
of 16 tracks.

1st breach of contract: Shanachie releases a

I.) vulgar   B O O T L E G

instead (as specified per indications of October 24th’s despatch) a re-
lease with 13 tracks, Shanachie has solely copied Mensch’s limited CD
and releases SH 5002 with 16 tracks, avoiding by this to manufacture
genuine tools…………………………………………………………………………………………………      9
Harry Fox (USA) and Washington have been notified of such on
July 2nd 92, resp. may 22nd 1992…………………………………………………………….              12

à Shanachie’s ‘Peeni Waali’ SH 5002 with 16 tracks is not acceptable
(see respective mention in the final licence contract of early 93)…………………….          6

Shanachie pretends to have lost the mastertapes and relative documents
(see 9). A second set of same has been despatched on May 22nd 1992 per
special fast delivery courier. At the same time, Shanachie is unambiguously
advised not to press any further SH 5002 with the 16-tracks-tools. For
this reason, Shanachie has been instructed to return tapes (Umatic 1630)
and stamper of the illfated bootleg……………………………………………………………………       17

Caracteristically Shanachie remains evasive from July 92 until February 93
and then announces to have lost the second set, too (…)!……………………………………         16

Based on the royalties-statements (see II.)………………………………………………………          19
it becomes obvious that Shanachie did press bootlegs a second time.
Shanachie’s first statement testifies 3’374 pressed units. The following two
statements show that 4’709 units have been sold.
Shanachie has been repeatedly invited to return those tools in order to
avoid more bootleg pressings. However, only in June 93 the Umatic tape is
returned but not the stamper. Instead, a handwritten notice of printing plant
Denon is joined, stating that supposedly the stamper (metal parts) have
been destroyed and that it isn’t to Denon’s policy to return the customer’s
materials… (I beg you pardon!…)……………………………………………………………………..      18

Since such practices are not acceptable and the scrapping procedure even
less controlable, Denon has been asked several times to render evidence
of such. No answer has ever been received.

2nd breach of contract:…………………………………………………………………………………     11

II.) mecanical rights are not paid by Shanachie

Based on this first gross breach of contract, several points of the licence
have been re-negotiated, amongst which new agreements on the
mechanical rights distribution.

On August 3rd 1992, Shanachie confirms in writing, that the situation of
mecanical rights is now clear to them…………………………………………………………… 10
and it is agreed in the final licence (early 93) that
all mecanical rights are included except

Licht & Stein,               Peeni Waali,               Mini Mali,                   Très Gai
Beacon of Hope,           Satin Doll,                  Ricochet

It has been agreed, that royalties are paid in US$ per pressed unit and not
in % per sold unit. As of today, Shanachie keeps forwarding statements in
% à this lack of transparence renders the fact obvious that by blurring
precise indication on pressed quantities, Shanachie is trying to skip royalty-………….           7
payments. i.e. if no mecanical rights are paid, it cannot be proved how
much units were pressed and consequently how much Shanachie owes
Mensch…………………………………………………………………………………………………………    2

Without pressure (i.e. repression!) and intervention, and as long as the tools of first pressing
are not taken away from Shanachie’s pressing plant (Denon?), further
bootlegging must be expected.

3rd breach of contract:………………………………………………………………………………….     13

III.) agreed quantity (150 cassettes and 150 CD’s) is not remitted

Point E. of the final licence grants that Shanachie sends Mensch free of
charge a quantity of 300 units (SH 5002).

As of today, only 45 units have reached Mensch (with shipping costs to be
paid by Mensch Music…)…………………………………………………………………………………    14

Shanachie has asked for promo 1’200 units to be free of royalties. Now, if
a concrete study of published reviews is made, Shanachie has triggered
a mere 6 articles. Many of the american reviews were originally already set
by contacts and promo deliveries of Mensch. As a comparison: Mensch
has achieved with its promo a hefty 74 articles!
à a) Shanachie has not made any state-of-the-art promo
b) Shanachie has used the 1’200 units for pure sales
This fact may be explained by the number of sales (see 1), not withstanding
still, that no mecanical rights are scheduled to be paid for these 1’200
units and that, even taking in account these promo units in Shanachie’s
fallacious statements, there has been more bootlegs pressed!

And on top of that it shows that a record company can do all that in impunity before
Suisa’s total incompetence and not acting as it should with its affiliate partner Harry Fox (N.Y.)