Pop managers oppose hi-tech royalty cuts

MANAGERS of Britain's leading pop groups are to fight a call that their charges' royalties be cut to help to repay the costs of new audio technology.

The recording industry wants artists to share the cost of the new mediums, including the mini-disc system and the digital compact cassette. Artists whose work appears on the new formats will be asked to accept a cut in royalties of up to 25 per cent.

Many pop band managers are opposed to the demand, and will attend their own forum on the issue at Britain's first popular music convention, which starts in Manchester next weekend.

Dire Straits have threatened a boycott of digital compact cassettes, due on the market this year, which give compact disc quality on tape. Their manager, Ed Bicknell, said the group would refuse to have any recordings on the new format unless they were paid full royalties.

Simply Red have agreed to take a cut in royalties, but in contracts involving the new formats signed before the dispute arose. Their managers helped to organise the meeting next weekend. One, Elliot Rashman, said they needed to unite on the issue: 'The music business is the only multi-million pound industry where the major conduit - the manager - has no representation. We have talked to many managers and everyone is agreed we need to create our own forum.'