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
iHeartMedia Reports Results for First Quarter
Beasley Broadcast Group Reports Revenue Growth in Q1
WDJX/Louisville DJ Alex Clark Cast In New Fox TV Series Coupled
Dave Ramsey to Keynote 2016 Radio Show
In Brief - May 4, 2016
May 3, 2016
CBS Corporate Revenue Up 10 Percent In First Quarter
Adam Wiener Named EVP/GM, CBS Local Digital Media
iHeartRadio Breaks Another Record: 85 Million Registered Users
Greater Media Renews Relationship with Triton Digital
Live Nation Reports $1.2 Billion in Q1 Revenue
In Brief - May 3, 2016
May 2, 2016
Entercom Reports First Quarter Results
Cumulus Names Brian Demay PD of WRRM-FM/Cincinnati
CBS Radio Names Kenetta Bailey SVP/Marketing
April 29, 2016
Pandora Revenue, Listenership Rises In Q1
In Brief - April 29, 2016
April 28, 2016
SiriusXM Reports First Quarter 2016 Results
CMG Tulsa Names Nathan Reed Director of Branding & Programming at KRAV-FM
Cumulus Media Shreveport Ups Julie Kansy to PD at KQHN
ASCAP Revenue Tops $1 Billion For Second Straight Year
April 27, 2016
Blaire Galaton-Kelleher Joins “The Jack Diamond Morning Show” On WRQX/Washington, D.C
Premiere Networks To Provide Distribution For Aiir
Radio Milwaukee Names Glenn Kleiman Executive Director
In Brief - April 27, 2016
April 26, 2016
Music News
McCartney, Stones, The Who Top New Festival
Quick Hits: Alicia Keys, Celine Dion, Kanye West
Quick Hits: Radiohead, Chris Brown, Against Me!, Violent Femmes, Miike Snow
As Expected, Beyoncé Tops Billboard Chart With Lemonade
Quick Hits: Prince, Radio Disney Music Awards, Radiohead, classic rock festival, Red Hot Chili Peppers, Garbage
FMQB Photo Pass: Pearl Jam
Blink-182 Announce Album, Tour With Matt Skiba
Drake Expands Tour, Reveals Tracklist For Views
Quick Hits: Demi Lovato & Joe Jonas, Cash Cash, Whitney Houston, Deftones' Chino Moreno
Quick Hits: Justin Bieber, Lady Gaga & Elton John, Prince, Thrival Festival, B.o.B
Quick Hits: Bumbershoot Festival, Fetty Wap, HARD Summer, Jenny Lewis, Bayside
Prince Returns To The Top Of The Billboard 200
Drake Announces Summer Sixteen Tour, OVO Fest
Quick Hits: Billboard Music Awards, Guns N' Roses, Tegan and Sara, Twin Peaks, Jennifer Hudson, Billy Paul
Beyoncé Releases New Album Lemonade Via Tidal
FMQB NOW

Nick Petropoulos
Head of Promotion
Glassnote Music

    Question Of
      The Week

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!