Modular founder Steve “Pav” Pavlovic recently opened up to Billboard to clear the air about the lawsuit that BMG brought against him over unpaid Tame Impala royalties. Pavlovic says that BMG are in the process of withdrawing the lawsuit, and that the two parties have reached an agreement on an appropriate amount to pay out. Here’s what he says was the cause of the confusion:
The issue arose out of an unfortunate misunderstanding due to their being different ways of calculating and paying mechanical royalties in the U.S. compared to the process we were used to in the U.K. and Australia. We didn’t realize that the different statutory process in the U.S. required Modular to deduct and pay the artists’ mechanical royalties directly.
He also addressed frontman Kevin Parker’s claim that he had received “zero dollars” from record sales outside of Australia:
I’m sincerely sorry that Kevin became caught in the middle of the Modular and Universal dispute — it’s an outcome I regret terribly.
As a separate matter, it is simply not correct to say that Kevin has never received a cent from sales internationally because advances are just that — an advance payment against future royalties and Kevin has been the recipient of considerable international advances from BMG, Universal and Modular.
Pavlovic also confirmed that he was leaving the company he founded, but that he’s still hashing out terms of his exit with Universal.