The lawsuit from Eminem’s former production company against Universal Music Group over digital royalties has been resolved in UMG’s favour, after a federal jury voted unanimously in favour of the label’s case. FBT Productions had claimed that artists should be paid half of the net receipts from digital downloads and ringtone sales, rather than the existing artist royalty rate. In other words, FBT wanted digital sales to be treated like licensing deals rather than traditional physical distribution deals. The jury’s decision is sure to be controversial among artists who’d been campaigning for the change, but labels will be breathing a sigh of relief, given the impact if the verdict had gone the other way.
UMG prevails in Eminem digital royalties lawsuit
March 9th, 2009 by Music Ally