Sony Music must pay the founder of a small record company $5 million for failing to put his company's logo on reissues of Meat Loaf's "Bat Out of Hell" album, a federal appeals court ruled. Steve Popovich, 65, who started Cleveland International Records in 1977 and soon afterward signed the chubby singer named Marvin Lee Aday, persuaded Epic Records to release the wildly successful album. Epic was owned at the time by CBS. Sony, which bought out CBS Records, paid $6.7 million to Popovich and his former partners in 1998 to settle a lawsuit over royalties from the album.
The settlement required Sony to place the Cleveland International logo on future Meat Loaf albums but Sony did not add the logo to "Bat Out of Hell" for more than a year. In a 2-1 decision Wednesday, a panel of the 6th U.S. Circuit Court of Appeals in Cincinnati upheld a federal jury's decision in 2005 awarding Popovich an extra $5 million in damages.
Sony has claimed that the logo omission was a mistake that later was corrected. In court documents, Sony also accused Popovich of trying to get money out of the company by trumping up the logo agreement.
"Bat Out of Hell" has sold more than 30 million copies worldwide, according to court records.
