Fresh controversy for BSkyB's chief

NEW questions about the management style of James Murdoch have emerged just days after the 30-year-old son of media mogul Rupert Murdoch was controversially endorsed as chief executive of satellite broadcaster BSkyB.

Financial Mail has learned that Rawkus, the hip-hop record label co-founded by James, is embroiled in a lawsuit alleging the company stole music from artists, including Eminem, for six years.

James Murdoch founded Rawkus with two friends, Jarret Myer and Brian Brater, in New York in 1996 after dropping out of Harvard University.

But the lawsuit, filed by The Royalty Network, a publishing rights firm representing writers, producers and artists, alleges Rawkus 'knowingly and wilfully' copied and distributed musical compositions by artists almost from the time it was founded.

'They were violating copyrights and they continued to do so even after we contacted their management,' claimed Frank Liwall, president of The Royalty Network. 'The impression I formed of Rawkus Entertainment was that it was not very well run.'

News Corp has since sold Rawkus to MCA Records.

News Corp said: 'When we sold the company, the buyers were aware of the case and assumed all legal liability.'

MCA Records, now called Geffen Records, would not comment.