Editor-in-Chief, Music

In the latest move in an ongoing dispute, singer-songwriter Barry Manilow, who sold a catalog of his music to Hipgnosis Songs Fund in 2020, and Nevada-based Stiletto Entertainment have filed a lawsuit seeking $1.5 million in unpaid bonus funds in U.S. District Court in California. The lawsuit, obtained by Variety, alleges the bonuses were owed as part of the 2020 acquisition of Manilow’s catalog; it also alleges breach of contract, fraud and fraudulent misrepresentation, and negligent misrepresentation.

Hipgnosis had sued Manilow late last month under similar terms, also alleging breach of contract. In a statement to the Financial Times, a company representative said: "In discussions with Mr Manilow's representatives, it became clear that there was a difference in interpretation of certain clauses in the sales agreement relating to bonus payments."

The lawsuit—which, in a comical note, identifies the plaintiff as "Barry Manilow writes the songs that make the whole world sing"—describes an initial purchase price payment of $7,500,000 for the catalog, with "an additional purchase price payment of $750,000.00 as the cash income Hipgnosis received from Hipgnosis' share of the assets [i.e., income based on the Subject Masters] increasing at least ten (10%) percent compounded year-over-year for each of Years 1 through 3 from purchase," and "an additional purchase price payment of $750,000.00 as the cash income Hipgnosis received from Hipgnosis' share of the assets increasing at least ten (10%) percent compounded year-over-year for each of Years 1 through 4 from purchase."