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===Rivalries and tensions at EMI=== ====Salary and royalty disputes==== By the time he signed a three-year contract renewal in 1959, Martin sought—but failed—to obtain a royalty on Parlophone's record sales, a practice becoming common in the U.S.: "I reckoned that if I was going to devote my life to building up something which wasn't mine, I deserved some form of commission", he reflected.{{sfn|Womack|2017|p=51–52}} The issue continued to linger in his mind, and Martin claimed he "nearly didn't sign" his spring 1962 contract renewal over this issue—even threatening EMI managing director L. G. ("Len") Wood that he would walk away from his job.{{sfn|Lewisohn|2013|p=629}} At the same time as the contract dispute, Martin took a work trip in late March 1962 to [[Blackpool]] with his secretary, Judy Lockhart Smith.{{sfn|Lewisohn|2013|p=629}} This trip led Wood to discover that Martin had been having an affair with Smith, which further irritated Wood. With their relationship strained, Wood exacted a measure of revenge by having Martin sign [[the Beatles]] to a record contract to appease interest from EMI's publishing arm, Ardmore & Beechwood.{{sfn|Lewisohn|2013|p=629–630}} Martin was also infuriated by EMI's refusal to give him a [[Christmas bonus]] at the end of 1963—a year in which he had produced seven no. 1 singles and dominated the albums chart—because his £3,000 salary disqualified him from receiving one. "I, naturally, had a chip on my shoulder", he admitted later.{{sfn|Womack|2017|p=156}} He also advocated that the Beatles' penny-per-record royalty rate be doubled; Len Wood agreed to this, but only if the Beatles signed a five-year contract renewal in exchange. When Martin countered that EMI should raise the royalty without conditions. Wood grudgingly acquiesced, but Martin believed that, "from that moment on, I was considered a traitor within EMI".{{sfn|Womack|2017|p=157}} ====Rivalry with Norrie Paramor==== During Martin's tenure at Parlophone, he also maintained a rivalry with fellow A&R director [[Norrie Paramor]], head of EMI's prominent [[Columbia Graphophone Company|Columbia]] label. Before Martin became one of Britain's most in-demand producers thanks to his work with the Beatles, he was envious that Paramor had produced highly successful pop acts, such as [[Cliff Richard]]. He admitted to looking with "something close to desperation" for similar success.{{sfn|Womack|2017|p=52}} Martin also believed that Paramor's habit of forcing Columbia artists to record his own songs as B-sides (thus giving Paramor, who used more than 30 pseudonyms in this practice, a royalty on the single) was unethical.{{sfn|Lewisohn|2013|p=272}} In March 1962, Martin met with a young [[David Frost]] to share insider information on the shady business practices of A&R men such as Paramor; this scoop aired in an episode of London AR-TV's ''This Week'' public affairs programme in November, causing Paramor great embarrassment.{{sfn|Lewisohn|2013|p=628, 785}} ====Conflict with Capitol Records==== In 1955, EMI purchased American recording company [[Capitol Records]]. Though this gave Capitol the [[right of first refusal]] to issue records in the US from EMI artists, in practice Capitol's head of international A&R, [[Dave Dexter Jr.]], chose to issue very few British records in America.{{sfn|Lewisohn|2013|p=270–271, 280}} Martin and his EMI A&R colleagues became irate at how few British records were issued by Capitol, and how little promotion was given for the ones that were issued.{{sfn|Lewisohn|2013|p=423–424, 523}} In December 1962, Martin complained to EMI managing director Len Wood that he "would not wish to recommend Capitol Records to any impresario who was thinking of launching a future British show in the States".{{sfn|Womack|2017|p=119}} Dexter passed on issuing the Beatles' first four singles in the US, driving Martin out of desperation to issue "[[She Loves You]]" on the small, independent [[Swan Records]].{{sfn|Womack|2017|p=143}} Capitol finally agreed to release a Beatles' fifth single, "[[I Want to Hold Your Hand]]", only after Wood met Capitol president [[Alan Livingston]] in person, in New York, in November 1963 with an order from EMI chairman Sir [[Joseph Lockwood]] to do so.{{sfn|Womack|2017|p=167}} Martin alleged that when he and the Beatles travelled to New York to make their American debut in February 1964, Livingston kept Martin away from the press to minimize EMI's role (and promote Capitol's) in the Beatles' success.{{sfn|Womack|2017|p=168}} Martin and the Beatles resented Capitol's practice of issuing records often highly divergent from British record releases. These changes could include the album title, cover art, and songs included. In addition, Dexter frequently altered Martin's mixes of Beatles tracks by processing them through Capitol's [[Duophonic]] mock stereo system.{{sfn|Womack|2018|p=78}} Capitol's divergent treatment of Beatle albums did not cease until the band signed a new contract with EMI in January 1967 that forbade such alterations.{{sfn|Womack|2018|p=168}}
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