Appeals Court Rules in Favor of Modular’s Steve Pavlovic in Tame Impala-Related Lawsuit

Appeals Court Rules in Favor of Modular's Steve Pavlovic in Tame Impala-Related Lawsuit

Tame Impala photo by Matt Sav

Earlier this year, two lawsuits relating to Tame Impala were filed against the band’s former label Modular, and the label’s founder, Steve “Pav” Pavlovic. One, filed by BMG, the rights management organization that handles the band’s music, alleged that Modular and Pavlovic, along with Universal Music Group and Universal Music Australia, failed to make quarterly payments on Tame Impala royalties.

Separately, Universal Music Australia sued Pavlovic, claiming that they’d acquired ownership of Modular at the end of 2014 when he allegedly signed away his shares. Pavlovic argued that since he had never physically signed the document, he hadn’t legally entered the agreement. (He told Billboard,I had felt bullied into agreeing the terms and then got my second wind and stood up to say ‘no’.”)

Now, months after an Australian court initially ruled in UMA’s favor, Australia’s Court of Appeals of New South Wales has reversed the decision and ruled for Pavlovic.

The ruling centered around a legal agreement that would’ve signed away Pavlovic’s Modular shares to Universal. Back in June, the Supreme Court of New South Wales ruled that while Pavlovic hadn’t physically signed the agreement, he’d agreed to do so. In the decision, the judge wrote that “Mr Pavlovic deliberately lied when he sent emails to representatives of the plaintiff stating that he had signed various documents.” (The judge also added, “I formed a most unfavourable opinion of Mr Pavlovic. He is a self-confessed liar who, it seems, effortlessly resorts to mendacity if he thinks it will suit his commercial ends.”)

However, the appeals court’s Chief Justice ruled that a binding agreement wasn’t reached, allowing Pavlovic to maintain 50% ownership of Modular as well as his directorship. The judge also ordered Universal to pay Pavlovic’s legal fees.

In a statement, Pavlovic wrote:

I’m obviously greatly relieved that my position has been vindicated by such powerful minds. I built Modular out of sheer passion and a belief in unique creativity. I regret terribly that the bands I have nurtured and adored all these years were caught in the cross-fire between Universal and I. It’s stressful to be one man staring down a corporate giant the size of Universal however I felt I had no choice but to fight for myself, the label I created and for the bands that we represent. I’ve always held Universal, and George Ash in particular, in high regard. We enjoyed many great years together as partners and I’m sad that we have reached a bitter end. I wish him and all beings UNIVERSAL LOVE. I’m hopeful that time will heal all wounds and that the respective bands and labels alike can get on with the job of what drew us all together in the first place – a desire to see great artists brought to the world stage.

A press release issued by Pavlovic also claims that BMG’s lawsuit over mechanical royalties “is to be dismissed” by the Southern District Court of New York. (Previously, Pavlovic had said BMG was no longer suing him; instead, both sides had entered settlement talks.) He also issued a statement on that ruling:

I’m pleased that the misunderstanding about the US statutory rate for calculation of mechanical royalties has been resolved in the commercial manner always intended by the parties. I’m deeply sorry for any upset caused to Tame Impala given that I’ve always been a staunch supporter and fan of the band; and to BMG given the relationship we’ve always enjoyed with them. I also regret the heavy handed press coverage of this aspect of Modular’s affairs which was completely inaccurate and out of hand. However I hope that with Universal and Modular’s respective obligations to BMG on behalf of Tame Impala now resolved that a line can finally be drawn under this unfortunate chapter.

Previously, Tame Impala’s Kevin Parker had described himself as a spectator in the legal back-and-forth. “I just find it counter-productive to get worked up over it,” he said. “They’re just gonna battle it out and do their thing.”

Tame Impala’s new album, Currents, was released in July.

Watch the band perform “Feels Like We Only Go Backwards” for Pitchfork.tv:

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