A precedent-setting federal court case between the rock group WAR and its former managers may stir the music industry in coming months, depending on the outcome.

WAR contends that its former manager, Steve Gold, and agent Jerry Goldstein violated RICO statutes while managing the band’s affairs. RICO statutes protect against someone using influence and power for illegal means, such as racketeering and corruption.

This is the first time that this type of suit has ever been filed concerning the music industry. If successful, it may force the record companies to pay entertainers a larger percentage of royalties than what they have in the past.

Bran Aitchison, the band’s current road manager, said, “Between the years of 1969 and 1979, there were no problems with the band and the manager, but also there were no accounting papers, and royalties were being paid in diminished amounts compared to the volume of albums being sold.”

Aitchison said that when the band decided to split from its old managers in 1979, the members found that Goldstein had gone behind their backs and copyrighted the group’s name. In 1981, the group filed suit to regain control of its name and succeeded in 1984 when a judge maintained that Goldstein and Gold obtained the name through fraud.

The band also accuses Goldstein and Gold of embezzlement and misuse of funds. It alleges there were no royalties paid out, and no accounting for earnings, recording expenses or other band expenses. According to Aitchison, this is happening to other clients of Goldstein as well, including Circle Jerk, Tanya Tucker and Blood, Sweat and Tears.

Aitchison contends that the group’s current problem is the temporary restraining order that is hampering its current tour.

The order, which was filed in conjunction with an appeal by Goldstein, states that the band cannot use the name WAR until it raises a $40,000 bond. This has caused the band to cancel shows and do creative publicity on tickets and posters.

Harold Brown Sr., WAR’s drummer, said, “When we started, we were ignorant and naive about the industry: We had no books to educate ourselves so when [Goldstein] approached us, we were taken in.”

Brown considered Goldstein a friend and trusted him, but he also said that the manager’s leadership staled in time. Brown alleged that they were not receiving the royalties that were due them and said that Goldstein misused funds and did not cover bills.

Goldstein manages another band using the name WAR, which includes such members as Harold Brown Jr., but most original members are not with that band, Brown Sr. said.

The original band, which has credits such as “The Cisco Kid” and “Lowrider,” include Lance Ellis on the saxophone, Harold Brown Sr., on drums, Howard Scott on guitar, B.B. Dickerson on bass and Moses Wheelock on percussion and vocals.

One of the members who has stayed away from the original band and the one formed by Goldstein is Lee Oscar, the original harmonica player. He has abstained from performing in fear of the lawsuit, Brown explained.

Scott summed up his view of the Goldstein band: “The band out there is like Menudo: It is a generic version of WAR. When they get too old, they will get someone new.”