Singer Goes To Court, Wins Freedom From Frankie Pact
by Nick Robertshaw
[transcribed from Billboard, Feb 27, 1988 by Mark Wasiel]

LONDON Former Frankie Goes To Hollywood singer Holly Johnson has won a
High Court case here against his former label, Zang Tumb Tumm
Records. As a result, he will be able to pursue a solo career with MCA
Records, with whom he recently signed.

Producer Trevor Horn, a co-owner of ZTT, had alleged that Johnson was
still under contract to the label and could not sign with another
company, but a High Court judge rules Feb. 10 that restraints in an
agreement signed five years ago by the two sides were unreasonable and
unfair. The judge characterized ZTT's 1983 agreement with Frankie Goes
To Hollywood as an "unreasonable restriction of trade" and dubbed the
provision barring former members from entering into other
record-company agreements "nonsensical."

Experts relate the decision to the celebrated Schroeder/Macaulay
judgment, in which a publishing agreement was overthrown for being in
restraint of trade. It had been thought that that ruling had little
application to recording contracts, where the investments involved are
much higher, but it now appears the Schroeder/Macaulay judgment may
indeed apply.

The judge also criticized ZTT for failing to exercise adequate control
over expenditures. The sums spent on the band's recordings exceeded
the agreement that only reasonable costs should be incurred, he ruled.

During the 16-day trial, it was revealed that the band's second album,
"Liverpool," had cost more than $1.3 million to prodcue. Production
costs for the first album, "Welcome To The Pleasuredome," and the
singles "Relax" and "Two Trives" were also described by the judge as
excessive. ZTT's counsel had argued that extensive studio work was
required to tcompensate for the band's limited musical capabilities.

No one from Frankie Goes To Hollywood played on "Relax" or "Two
Tribes," according to defense attorney Andrew Bateson. He alleged that
session musicians and Horn's studio wizardry were entirely responsible
for the finished tracks. Even Johnson's voice had needed considerable
studio enchancement to "bring it into line musically," he said.

Released in Octoboer 1983 and initially banned by the BBC, "Relax"
went on to become the fifth-biggest-selling single here ever, and "Two
Tribes" was almost as successful. The album "Welcome To The
Pleasuredome" did include some performances by band members, but most
of the work was done by Horn, the defense charged.

The judge also examined Johnson's publishing agreement with ZTT's
publishing arm, Perfect Songs, and ruled that clauses routinely
included in such contracts after Schroeder/Macaulay were not
sufficient protection from its implications. In particular, he struck
down the provision that when a publisher has not exploited a copyright
and an artist wishes to reclaim it, he must give notice of doing so
within a set period -- usually three or six months -- after the
expiration of the initial term.

No decision was made on who will pay the estimated $350,000 in court
costs, but rumor had it that MCA helped finance Johnson's case.