"BMG, home to such acts as Carlos Santana, OutKast and Britney Spears, is the first major music company to scrap contract deductions that artists say obfuscate their earnings. The action comes as lawmakers in California and New York have begun to scrutinize complaints from pop stars about questionable accounting practices in the industry.

"One reason this industry has ended up with such a bad image is because we could not look a guy in the eye and tell him, as a partner, that the contract he was about to sign was fair," said BMG Chairman Rolf Schmidt-Holtz. "This is the first step in a larger plan by BMG to redefine our partnership with artists.""

Good to see at least one company paying attention to its disgruntled money-makers.