Sunday, April 20, 2014
Advertisement:
What is RSS/XML?
Subscribe to FMQB News.

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
Report: Two-Thirds See Radio As Local
L & L And Alpha Merge As Alpha Media
In Brief - April 17, 2014
FMQB FYI... Links You Should Know About
April 16, 2014
BIA/Kelsey Says "The Internet Radio Revolution Has Arrived"
In Brief - April 16, 2014
April 15, 2014
Alan Chartrand Named Market President For CCM+E-Boston
CBS Radio New York SVP Market Manager Don Bouloukos To Retire
In Brief - April 15, 2014
April 14, 2014
CCM+E Research Report: The Power of Personality
In Brief - April 14, 2014
April 11, 2014
The Week In Review: 4/7-4/11
eQB NOW
Major Labels Sue Megaupload
In Brief - April 11, 2014
FMQB FYI... Links You Should Know About
April 10, 2014
BIA/Kelsey Predicts Continued Mobile Growth
Radio Disney & Dees Entertainment Announce Partnership
In Brief - April 10, 2014
April 9, 2014
Report: Apple Considering Retooling iTunes
In Brief - April 9, 2014
April 8, 2014
SNL Kagan Releases Report On Q1 Radio Station Sales
UMG Acquires Eagle Rock Entertainment
Music News
Prince And Warner Bros. Records Unveil New Partnership
Grohl & Novoselic Talk Nirvana's Hall Of Fame Night
Quick Hits: Coldplay, Forbes' wealthiest rappers, American Idol, Beck, The Whigs
AC/DC Will "Continue To Make Music"
Frozen Soundtrack Still Rock Solid In Sales
Quick Hits: Miley Cyrus, Jay Z & Beyonce, Made In America festival, Paul McCartney, The Who, Golden Gods Awards
Is AC/DC Really Retiring?
Quick Hits: Nirvana, Imagine Dragons, 2 Chainz, Muse, The Rolling Stones
Coachella Boasts Star-Studded Cameos In Weekend One
Quick Hits: Ed Sheeran, Lana Del Rey, Smashing Pumpkins, Janelle Monáe & Kimbra
The Week In Review: 4/7-4/11
Nirvana, KISS & More Enter Rock Hall Of Fame
Demi Lovato and Jason Derulo To Stream Live Performances
Quick Hits: Capital Cities, Billboard Music Awards, Drake
Linkin Park Ready To Rock With The Hunting Party
FMQB NOW

Nick Petropoulos
Glassnote Entertainment
Group

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!