Expert: Elizabeth - 10/6/2008

Question
QUESTION: Michael outbid Paul to own the rights the Beatles songs. Surely if Paul wanted the rights to the songs so much HE could have outbid Michael? I mean he could well afford to!



ANSWER: First of all, let me set the record straight on what happened.

It wasn't "the Beatles songs" that were up for the highest bidder.  It was the ATV catalogue, which included Northern Songs.  Northern Songs was the company that contained almost every Lennon/McCartney song during the Beatles era, as well as a George Harrison track or two before George created Harrisongs.

In one of those rare spots of friendship, Paul had put in a joint bid with Yoko Ono to co-own the rights to these songs.  Now, I'm not saying that this is all Yoko's fault.  In my opinion, very very rich people get where they are by making wise investments (as both Paul and Yoko have done) and by, well, staying kinda on the cheapskate side.  

But both Paul and Yoko put up what they thought was going to be a very high bid, and also thought no one would contest them.  Michael Jackson came in at almost the very last minute and made his bid of $47.5 million, and snatched the rights up from under their noses.  It was a very unfortunate mistake that has lasted until the present day.  Paul learned his lesson, and when those Lennon/McCartney songs that weren't in the catalogue (Love Me Do, PS I love You, Please Please Me, and Ask Me Why) came up for sale, he bought them instantly.

Thanks for taking your time to ask me a question.

---------- FOLLOW-UP ----------

QUESTION: Hi Elizabeth

Thanks for your clear and very full answer!

You would think that the late, great Neil Aspinall would have been involved and able to prevent this. It must pain Paul that he has to pay Michael every time he plays one of his songs and does Michael also get royalties when these songs are played on radio?

Murray

Answer
Michael Jackson (and Sony, because MJ now co-owns the ATV catalogue with them) gets paid every time one of those songs gets played.  Not just the Beatles versions, either.  Any cover of those songs gets a royalty too, like those "Hello Goodbuy" ads that Target has been airing recently, or anything in last year's film "Across the Universe."  And yes, every time Paul plays one of those songs on tour, he has to pay.

This is why you rarely hear the Beatles' versions of these songs in movies and on tv.  The Beatles may not have the rights to the songs, but they have the rights to the Beatles recordings of them.  So they rarely let them get used because they're pissed that Michael Jackson will get a royalty in addition to theirs.

Neil Aspinall actually had nothing to do with this.  When Paul and Yoko were making their bid, they were looking for joint ownership in their own publishing companies, MPL and Lenono.  In a cruel ironic twist, it was Paul telling Michael Jackson about his success with buying song rights for MPL that gave him the idea of buying the ATV rights.  Meanwhile, Paul has the rights to the Buddy Holly catalogue and many Broadway shows such as Grease, Annie and a Chorus Line.  But not having the rights to songs that he wrote himself still hurts, both personally and in the wallet every time he sings "Yesterday" and pays Michael Jackson for it.