UMA Distance Themselves From Modular Founder Amid Tame Impala Royalty Saga

2 June 2015 | 4:26 pm | Mitch Knox

UMA claims neither it nor Modular Recordings should have been named in a legal claim from BMG

Universal Music Australia and Modular Recordings deny that they should ever have been listed as defendants in a court case brought by global music mega-company BMG over allegedly missing Tame Impala royalties, saying that while BMG's agreement was with an organisation owned and operated by Modular founder Steve "Pav" Pavlovic, it is "a totally separate US-registered company".

Additionally, theMusic.com.au has become aware that Pavlovic is embroiled with a separate batch of proceedings against UMA and Modular here at home, in the form of an ongoing trademark battle having been pitched over the several past months and a freshly scheduled case for the Supreme Court of New South Wales this week.

In the statement issued by UMA this afternoon, the company clarifies that neither organisation has yet been served documents relating to BMG's claim, and expressed its disappointment that apparently neither UMA nor Modular was approached by BMG ahead of the case being filed.

"Had they been contacted, BMG would have realised the companies should not have been named in the legal claim," the statement reads.

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In defense of the role of both UMA and Modular with respect to the case, the statement says the companies "totally reject the claim made by BMG that they are in any way liable for unpaid mechanical royalties relating to the band Tame Impala".

"Universal Music Australia and Modular Recordings were not involved in contracting with BMG over mechanicals for sales of Tame Impala recordings in the United States," UMA's statement said.

"A totally separate US registered company — owned and operated by Mr Pavlovic — is responsible for contracting with BMG and for any mechanicals liability. Mr Pavlovic, who is no longer employed by Modular Recordings, has confirmed that this matter has nothing to do with Universal Music Australia or Modular Recordings in Australia."

As mentioned previously, regardless of BMG erroneously naming UMA and Modular in its case, theMusic.com.au has become aware of a case to be heard this Friday in the Supreme Court of New South Wales by Justice J Sackar that lists Universal Music Australia as the plaintiff and Pavlovic — along with Angela Margaret Pavlovic and company Pavlovic Investments Pty Ltd — as the defendant. Details over the specific nature of the hearing are not public.

In addition, Pavlovic appears to have been entangled in a trademark battle with Modular and UMA since at least January over the Modular name, with Pavlovic having last lodged the trademark in April 2014 before it was accepted in September. The IPAustralia database still lists that trademark as "opposed" by UMA and Modular, with representation by Gilbert + Tobin Lawyers. The challenge is presently in a mutually agreed "first cooling-off period", which lasts until 28 October this year, while evidence in support of the parties' claims to the trademark is due on 28 January 2016.

Finally, although specifics are currently unavailable, Pavlovic Investments applied yesterday to make several changes to its operation, including "company details", registered address, and principal place of business.

Universal Music Australia had no further comment when contacted by theMusic.com.au with regard to the additional cases.