Supreme Court Won't Hear UMG-Eminem Royalty Case
March 22, 2011

The U.S. Supreme Court has declined to hear Universal Music Group's appeal of a lower court decision stemming from unpaid royalties to Eminem and F.B.T. Productions. According to the Detroit Free Press, the Supreme Court opting to pass on the case means that the previous lower court ruling stands, which could cost UMG between $40-50 million.

F.B.T. filed the suit in 2007, claiming that UMG's online deals are licensing agreements and the label should pay out 50 percent of net revenue on digital downloads. Universal argued that it owed F.B.T. the same royalty it pays on physical sales: 18 percent of the suggested retail price. The Detroit-based FBT administered Em's deal with UMG in 1998, and is still entitled to royalties from his music. Eminem himself was not a part of the suit.

"For us, this is probably a $40 million to $50 million issue," Joel Martin of F.B.T. told the Free Press. "Every artist who has this sort of language in their contract is now going to go back to their record company and say, ‘OK, so what do you want to do about [download royalties]?’"

There has been speculation that the results of this case could lead to changes across the industry when it comes to download royalties, with potentially higher payouts for acts whose contracts pre-date the MP3 era.

In a statement, Universal spokesman Peter Lofrumento said, "The case has always been about one agreement with very unique language. As it has been made clear during this case, the ruling has no bearing on any other recording agreement and does not create any legal precedent."

"We’ve been waiting for this from the Supreme Court, but we’ve been talking with the artists about it, and they’ve been very interested," Billy Wilson of the Motown Alumni Association told the Free Press."And it’s not just Motown artists, but many others in the same situation, who now have the same opportunity to renegotiate their contracts — and renegotiate the structure of the music industry, really."




 
Breaking News
eQB NOW
Pandora Revenue Up in Second Quarter of 2016
John Crenshaw Named OM at Cumulus-Youngstown, OH
Alpha Media Savannah-Hilton Head Launches Throwback Station "G100"
July 21, 2016
iHeartMedia, Cumulus, Entercom, Cox, Sun Broadcast Group & Shazam Collaborate on New Audio Measurement
Justin Riley Named PD For Power 93.3 & 106.1 KISS FM-Seattle
Universal Music Publishing Promotes David Gray to EVP/Head of West Coast A&R
Steve Mann Named APD/Night Host at WGRR/Cincinnati
John Crenshaw Named OM at Cumulus-Youngstown, OH
Entercom Names Kim Reis VP/Digital Audience Engagement
July 20, 2016
UMG And Interscope Ink Multitiered Pact With Downtown Records Celebrating 10th Anniversary
WCTO PD Jerry Padden Adds WLEV Programming Duties in Allentown-Bethlehem-Easton
Cox Media Group Tulsa Names Mary Garcia Digital Sales Manager For Tulsa Radio
July 19, 2016
Beasley Broadcast Group to Acquire Greater Media For $240 Million
UMG Appoints Maria Alonte SVP/Film & TV Synchronization for Def Jam, Island & Republic
iHeartMedia Stakes Claim to Historic New York Skyline on Iconic East River Billboard
July 18, 2016
iHeartMedia Announces The Return Of The 2016 iHeartRadio Fiesta Latina
Brooke & Jubal Show Joins Aimee KVGS (Star 107-9)/Las Vegas
WQEN/Birmingham's #JustShowUpShow Draws Big Crowd
In Brief - July 18, 2016
July 15, 2016
CBS Radio Baltimore Debuts UpClose Studio
Cealleigh Moore Named GSM At Entercom Sacramento
July 14, 2016
iHeartRadio Opens Its Doors To NPR Stations
Pierre Bouvard Insights: Millennial Myths and Realities
Music News
New David Bowie Box Set Includes Previously Unreleased Album
Quick Hits: Rihanna, KoRn, My Chemical Romance, Jennifer Hudson, Regina Spektor, Oasis
Temple of the Dog Announce First-Ever Tour
Quick Hits: The Beatles, Iggy Azalea, My Chemical Romance, Haim
Quick Hits: Alternative Press Music Awards / Marilyn Manson, Wilco, Beck, Led Zeppelin, Kesha
Drake Returns To #1 On Billboard 200
Kanye, Taylor Swift Feud Over "Famous" Lyric Again
Quick Hits: Coldplay, Schoolboy Q, Prophets of Rage, Celine Dion, Against Me!
Katy Perry Releases Olympics Anthem
Quick Hits: Britney Spears, M.I.A.
Beyoncé, Adele Earn Emmy Nominations
Drake, Adele Top Nielsen Music Mid-Year Album Charts
Quick Hits: Guns N' Roses, Beasties Boys
Taylor Swift Ranked As Top-Earning Celebrity of 2016
Quick Hits: Joe Perry, Bad Boy Entertainment
FMQB NOW

Bill Tanner
SVP/Programming
SummitMedia

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!