Resolving a $190,000 Licensing Dispute Between Two Record Labels
Jun 26, 2025
Licensing music between record labels is a standard part of the industry. But when the agreed terms are breached and royalties go unpaid, a once straightforward business arrangement can become a significant financial concern. Payfor recently assisted a respected New York record label in recovering $190,000 from a California-based company that had ceased communication and ignored their obligations.
This was not only about money. It was about restoring fairness and protecting future rights.
When a Licensing Deal Breaks Down
The two parties had a licensing agreement covering a catalogue of tracks intended for various commercial uses, including compilations and sync placements. The deal involved quarterly royalty payments, backed by reporting obligations.
Initially, things went smoothly. Reports were sent, payments were made. But as the usage of the licensed tracks increased, those payments stopped arriving. Communications slowed, then stopped altogether. Different team members gave conflicting stories, and eventually, no one at the California label could be reached.
With six figures outstanding and growing frustration, the New York label turned to Payfor.
Our Strategic Approach to Music Debt Recovery
Rather than resorting to threats or aggressive tactics, Payfor positions itself as a commercially minded third-party intermediary. Our role is to help both sides engage professionally, constructively, and decisively.
We began with a full analysis of the contract, correspondence, and payment history. Our legal team evaluated the governing law and jurisdiction, ensuring we were fully prepared to escalate proceedings in either New York or California if needed.
We then launched our structured 30-Day Chase Campaign. This involves formal daily contact via email and telephone with the decision-makers and legal counsel. Our tone is clear, serious, and backed by legal understanding. We cite contractual obligations, raise the issue of statutory interest, and provide a final opportunity to negotiate without prejudice.
Our goal: to resolve the matter without resorting to legal action, while always being ready to pursue it.
Payment Secured Through Skilled Negotiation
In the third week of engagement, the California label responded via legal counsel. They requested supporting documents, which we had already compiled and presented clearly. Discussions followed shortly after.
Payfor’s experienced negotiation team managed the entire exchange, identifying leverage points and offering commercially realistic solutions. We knew when to push for urgency, when to wait for internal approvals, and how to maintain pressure without damaging the chance of resolution.
A full settlement of $190,000 was secured over two instalments, including interest. The first payment was made in advance of the agreed deadline, and the second followed shortly after.
Why Record Labels Choose Payfor
Payfor understands the complexities of licensing, publishing, and copyright in the music industry. We’ve recovered large sums for record labels and publishers across the United States, the United Kingdom, and beyond.
What sets us apart is our ability to act as a professional intermediary, not just a collector. We initiate informed dialogue, bring legal weight where necessary, and engage C-level stakeholders with a view to resolution. Our deep industry knowledge and legal networks make us an ideal partner for rights-based recoveries.
If your record label is facing non-payment, whether due to royalties, licensing, or long-outstanding legacy agreements, Payfor can step in to handle the matter.
We don’t chase. We resolve. Contact Payfor today.
Disclaimer:
This blog post is intended for informational purposes only and should not be construed as legal advice. The information provided in this post is based on general principles and may not apply to specific legal situations. Laws and regulations vary by jurisdiction and can change over time. Readers are advised to seek professional legal counsel before making any decisions based on the information provided in this blog post. Payfor Ltd is not a law firm and does not provide legal services. The company disclaims any liability for actions taken based on the contents of this blog post.
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