Legal: Clear samplesIt's a copyright infringement (infringing rights of both GRG and Tempest), and a obvious case of plagiarism (using the whole C64 version as the base of the "Block Party" ringtune and "Do it").
This is a particularily interesting point:
If the sample is used a lot
If the sample is extensive and underpins your tune to such an extent that the track won't really work without it, then you're in a weak bargaining position.
The other record company can demand a much higher royalty - as much as 50% in some cases.
The record Loose has 12 tracks,. "Do it" is one of them, that'd mean 1/24th of the profits. Loose has sold 3 million copies (early december 2006, so it's more by now).
So:
The potential cost of removing an uncleared sample once a record has been released is enormous and your bargaining position with the copyright owners is extremely weak.
They may sue for damages as well as demanding some or all of the profits from the record. They could obtain a court injunction preventing the record company from selling the record. If they succeeded in that, then your label would have to go to the time and expense of recalling any copies in the shops and re-pressing the record. The bill for all this lands in your lap.
