polygram records sdn bhd v the search & anor

8/10/2019 Polygram Records Sdn Bhd v the Search & Anor

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Malayan Law Journal Reports/1994/Volume 3/POLYGRAM R!OR"# #"$ %&" ' (& #AR!& ) A$OR* +1994, 3 MLJ 12- * . August 1994

4 pages

+1994, 3 MLJ 12-

POLYGRAM RECORDS SDN BHD v THE SEARCH& ANOR

HIGH COURT (KUALA LUMPUR)VISU SINNADURAI JCIVIL SUIT NO D2-22-52-885 Auu!" #$$%

Contract -- False misrepresentation -- Group clearly intended to contract with recording company --Understood nature, duration and obligations under the contract

Contract -- Inequality of bargaining power -- Contracts grossly unfair to the other side may be set aside ongrounds of public policy -- Contracts Act 1!" s #$%e&

Contract -- 'on est factum -- 'eed to pro(e that the contract was )radically or substantially or fundamentally)different

Contract -- *arties -- Contract between roc+ group and recording company -- hether contract was withindi(idual members of the group or with the group itself

Contract -- ecording contract -- .tandard contract used -- Group began recording for another company --hether breach of contract -- hether contract still binding on group -- hether contract (oidable ongrounds of undue influence, false misrepresentation, inequality of bargaining power or restraint of trade --'eed for recording company to re(iew terms of recording contracts with artistes -- Factors to be considered

by recording company -- Contracts Act 1!" ss 1/, #$, #0, /

Contract -- escission -- .econd contract entered into -- hether first contract rescinded and substituted bysecond contract -- Intention of parties -- Contracts Act 1!" s /

Contract -- estraint of trade -- Co(enant to pro(ide e2clusi(e recording rights during currency of contract --Co(enant to restrain a person from carrying on trade or profession in the post-contract period -- hetherboth types of co(enant (oid -- Contracts Act 1!" s #0

Contract -- 3erms -- 4ater clause in the contract inconsistent with earlier clause or main ob5ect of the contract-- hether later clause (oid

Contract -- Undue influence -- elationship of trust and confidence which allowed contract to be procured --hether contract )unconscionable) or one of manifest disad(antage -- Contracts Act 1!" s 1/

Contract -- ritten contract -- *arty claimed that contract not binding as they had not agreed to the terms ofthe contract -- hether bound regardless -- Circumstances when party won)t be bound

Copyright -- .ound recordings -- Application for copyright of songs recorded with record company to bereassigned to artiste -- hether copyright belongs to artiste or recording company

3ort -- Inducement of breach of contract -- ecording contract -- hether group induced to breach contractwith recording company

1$ 647 1#8 at 1#0


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(0e plants Polygram Reor5s #5n %05 entere5 nto a wrtten agreement 67t0e rst ontrat78 wt0 a rogroup (0e #ear0 67t0e group78 on - Oto:er 19;4< (0ey were sgne5 on :y r Yeo0 67r78 t0e t0enartste an5 repertore manager o t0e plants< (0e rst ontrat was or a pero5 o two years wt0 an optonor two urt0er pero5s o one year ea0 e=ersa:le at t0e 5sreton o t0e plants an5 not t0e groupung 19;- merea mas0 5at ole0 ontra 5engan Polygram sama a5a 5 :awa0terma ontra pertama atau ontra e5uauan merea 5 :awa0 ontra pertama erana ontra pertama tela050apusan< #elepas 5gant ole0 ontra e5ua 0a atau la:lt t5a :ole0 :angt 5arpa5aontra pertama tuar a5ala0 :ole0 :atal< " 5alam es n ter5apat eterangan yangmenun>uan :a0awa ter5apat 0u:ungan yang 5eat 5 antara umpulan tu 5engan r yangmerupaan suatu 0u:ungan :er5asaran eperayaan 5an eyanan< Ole0 tu r:ere5u5uan untu mengat ontra e5ua 5engan umpulan tu< Fntu se:a:*se:a: nanggapan pengaru0 t5a wa>ar :ole0 tm:ul< Aan tetap se:elum umpulan tu :ole0mengetepan ontra tu atas alasan pengaru0 t5a wa>ar merea mest mem:utan:a0awa ontra tu a5ala0 7t5a :erpatutan7 67unonsona:le78 atau suatu ontra sangatmerugan :ag p0anya< (erma ontra yang e5ua t5a merupaan terma yang :aru5se:a:an ole0 ontra pertama tu< Dalaupun tempo0 ontra tu tela0 5lan>utan 5 :awa0

ontra e5ua tu tempo0 tu t5a men>a5an eseluru0an ontra tu sangat meruganepa5a umpulan tuuan :a0awa plant tela0menggunaan 0a merea untu melan>utan tempo0 ontra e5ua tu untu 5ua ta0un lag untu mem:er 0a raaman yang eslusepa5a plant 5alam tempo0 ontra raaman merea t5a merupaan waa5 penyeatan


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pernagaan 5an ole0 tu t5a 5>a5an t5a sa0 5 :awa0 s 2; Ata tu< #esyen 2; 0anyaterpaa 5 5alam es*es 5 mana seseorang 5seat 5arpa5a men>alanan peer>aan atauproesyennya 5 5alam tempo0 selepas ontra tu 5an t5a 5 5alam tempo0 ontra tu< Ole0tu suatu asal 5 5alam ontra e5ua yang merupaan suatu waa5 penyeatan pernagaana5ala0 t5a sa0 a: nto 5an t5a mengat umpulan tu apa:la merea mula mem:uat

raaman untu Go*#ear0ua ?hiow .teamship Co 4td ( Chop Guan >in+193, 1 M! -.

4)9strange ( F Graucob 4td+1934, 2 H% 394

4e(ison ( *atent .team Carpet Cleaning Co 4td+19-;, I% E9B +19--, 3 All R 49;B +19--, 3 DLR 9

4loyds :an+ 4td ( :undy+19-., 5eualt I% 32EB +19-4, 3 All R -.-B +19-4, 3 DLR .1

'aested ( .tate of *era++192., . M#LR 1;.

'ational estminster :an+ plc ( 6organ+19;., A! E;EB +19;., 1 All R ;21B +19;., 2 DLR .;;

;).ulli(an ( 6anagement Agency and 6usic Co 4td+19;., I% 42;B +19;., 3 All R 3.1B +19;4, 3 DLR 4--

*anayiotou < ;rs ( .ony 6usic 9ntertainment %U?& 4td6(0e (mes 3 June 19948 6unreporte58

*ao ;n ( 4au @iu 4ong+19;, A! E14B +19-9, 3 All R E.B +19-9, 3 DLR 43.

*olygram ecords .dn :hd ( >illary Ang < ;rs+19;;, 3 MLJ 3-

*oosathurai ( ?annappa Chettiar+1919, 4- ?A 1


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aghunath *rasad ( .ar5u *rasad AI+1924, P! E

.chroeder 6usic *ublishing Co 4td ( 6acaulay+19-4, 3 All R E1EB +19-4, 1 DLR 13;

.il(erstone ecords ( Gary 6ountfield < ;rs %unreported&1991 5eault

United =ominions Corp %7amaica& 4td ( 6ichael 6itri .houcair+19E9, 1 A! 34B +19E;, 3 DLR ;93

rigglesworth ( ilson Anthony+19E4, MLJ 2E9

@ap Chee 6eng ( A5inomoto %6alaysia& :hd+19-;, 2 MLJ 249

ang 3umb 3uum ecords ( >olly 7ohnson6(0e ?n5epen5ent 2 August 19;98 6unreporte581$ 647 1#8 at 18

L*!',"*3 +4++ "3

!ontrats At 19. ss 1E 2 246e8 2; E3

!ontrat At +?n5, s 1E

ong .ai Fong and ' 'a(aratnam %.hearn =elamore < Co&or t0e plantsunton to restran t0e rst 'e name5 5een5ants >ontly an5 se'erally untl urt0er or5er

or untl 11 June 19;9 romC1i) 0ol5ng t0emsel'es out as :eng ree to enter nto any reor5ng ontrats wt0 any ot0er

reor5ng ompany w0et0er su0 ot0er reor5ng ompany/ompanes :elong to or areontrolle5 :y t0em n5'5ually or >ontlyB

1ii) enterng nto any 5str:uton ontrats wt0 PM! or any ot0er ompany w0et0er owne5 orontrolle5 :y t0em n5'5ually or >ontly or t0e 5str:uton o reor5ngs t0at 0a'e :eenreor5e5 :y t0em w0et0er or t0emsel'es ot0ers or t0e plantsB an5

1iii) reor5ng or any ot0er reor5ng ompany nlu5ng Go #ear0 #5n %05 e=ept t0e plantsunton to restran t0e s=t0 name5 5een5ants w0et0er :y t0er 5retors ser'ants oragents untl urt0er or5er or untl 11 June 19;9 romC

2i) enterng nto any 5str:utors0p agreement wt0 t0e rst 'e name5 5een5ants or purposes o

5str:utng an5 or oerng or sales musal reor5ngs o t0e sa5 rst 'e name5 5een5antsw0et0er su0 reor5ngs were reor5e5 :y Go #ear0 #5n %05 or any ot0er ompanyB an5

2ii) 5str:utng an5 or oerng or sale musal reor5ngs o t0e sa5 rst 'e name5 5een5antsw0et0er su0 reor5ngs were reor5e5 :y Go #ear0 #5n %05 or any ot0er ompanyontly orse'erallyuntontoget0er wt0 t0e se'eral applatons ma5e :y :ot0 t0e partes or t0e amen5ment o t0e plea5ngs t0erewas ons5era:le 5elay n t0e =ng o t0e 5ate o t0s tral

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