For more than a year, singer Ed Kowalczyk has been touring under the banner of Live, the platinum-selling rock band he co-founded more than 30 years ago in York.
- But the agreement allowing him to use the Live name is under fire in a York County court.
- Former Live drummer Chad Gracey is suing Kowalczyk for breach of contract and fraudulent misrepresentation in relation to the agreement, which was forged in August 2022, according to court filings.
- Gracey signed the deal with the understanding that he would be playing on the tour in return for 25% of the net receipts from merchandise sales and live performances, according to the filings.
- Gracey was due 5% of the net receipts from tour dates where he did not appear.
- But, Gracey claims, Kowalczyk never intended to allow him on tour.
- Kowalczyk and Fifth Veda, the singer’s business entity, “have consistently and systematically prevented plaintiff from performing at any performances of ‘Live,'” according to a court filing this month.
- Further, Kowalczyk has not paid the 5% of proceeds due under the agreement, Gracey alleges.
- Efforts to reach attorneys for Kowalczyk were not successful.
- But in his court filings, Kowalczyk is seeking to have Gracey’s claims dismissed as legally insufficient, among other reasons.
- Kowalczyk has been playing shows with other musicians who are not original band members.
What’s at stake: In an interview with biznewsPA, Gracey estimated that Live shows fronted by Kowalczyk generated more than $1 million in revenue last year.
- “The only reason he’s on tour and making money is because I gave him my vote,” said Gracey, who lives in California.
- Gracey also alleges that Kowalczyk allowed the trademark for Live to lapse temporarily, which resulted in a loss of its value.
The background: The lawsuit, originally filed in December, is the latest in a string of legal battles for the band’s founders.
- They also are facing an arbitration demand from a former management company that claims it is owed $250,000 in royalties under agreements the band signed in 1990 and 1994.
- The agreements allow the company, Media Five, to collect royalties even after the agreements expire, according to the demand, filed with the American Arbitration Association.
- Efforts to reach attorneys for Media Five were not successful.
- Gracey said he believed former Live guitarist Chad Taylor was taking care of the royalties as manager of their shared business entity, Think Loud Holdings.
- Taylor said he relied on financial professionals.
- “It seems they all let us down with this and other matters,” said Taylor, who lives in Lancaster and has been performing under his own name since last fall.
- Taylor also questioned the fairness of the agreement.
- Kowalczyk was responsible for his share of the royalties, Gracey and Taylor said.
- In a separate lawsuit, Gracey is suing Taylor and former Live bassist Patrick Dahlheimer over alleged mismanagement of Think Loud.
- Efforts to reach Dahlheimer were not successful.
What’s next: Live recently announced a 19-city tour starting in August with Stone Temple Pilots.
- The tour marks the 30th anniversary of each band’s breakthrough album: Live’s “Throwing Copper” and Stone Temple Pilots’ “Purple.”
- The tour is slated to begin in Concord, California, near San Francisco, and wrap up in Indianapolis.
