WMG Settles Digital Royalties Lawsuit
January 3, 2014

Warner Music Group has settled a class action lawsuit over unpaid royalties for ringtones and digital downloads. The Wrap reports that WMG will pay out $11.5 million in the settlement, for past damages as well as future royalty rates for the parties involved in the suit.

The musicians who filed the suit claimed that Warner Music had classified its payments as sales instead of licenses, shorting them in royalty payments by using a lower rate.

WMG agreed to a settlement, while still denying the original charges, because the company believes there was no evidence of wrongdoing. The Wrap notes that WMG had argued that when a download is purchased, it is the same type of purchase as buying a physical copy of a song. However, the plaintiffs argued that due to DRM in the digital files, WMG retains ownership of the original material and is creating a new license every time someone legally downloads their music.

In the settlement, WMG noted there is no precedent to support the case, but it would rather settle now than enter into what could be years of litigation. However, Eminem notably won a similar suit in 2010 against Universal Music Group, where the court ruled digital downloads were licenses.




 
Breaking News
In Brief - October 17, 2014
The Week In Review: 10/13-10/17
October 16, 2014
Michael Jordan Named PD At WAMZ
Dan Chertoff Named VP, A&R, RCA Records
Greater Media Chairman, CEO Peter Smyth Named Among The 2014 Giants of Broadcasting
Joe Cuello Joins TuneCore As Chief Creative Officer
Clip Interactive Reports Milestones In Revenue, MAUs, Engagement For Radio Station Partners
iHeartMedia Wins Gold Award At Healthcare Marketing IMPACT Awards
In Brief - October 16, 2014
October 15, 2014
Gayle Troberman Named iHeartMedia EVP And Chief Marketing Officer
John Geary Appointed Market President For iHeartMedia Sacramento
Sun & Fun Media Partners With Premiere Networks For Ad Sales
TuneCore Pays Artists $32.7 Million In Q3 2014 for Music Distribution, Expands Music Publishing Catalog
In Brief - October 15, 2014
October 14, 2014
Warner Music Group Broadens Senior Management Team
Tribune Media Announces $400 Million Stock Repurchase Program
New Generation Radio Partners With Colbert Media Group
In Brief - October 14, 2014
October 13, 2014
Steve Davis Named VP/Programming, CBS Radio Washington, D.C.
Capitol Music Group Names Ambrosia Healy SVP/Head Of Media Strategy & Relations
Alpha Media To Purchase Buckley Broadcasting of California, LLC, Buckley Communications, Inc. Radio Stations
Alicia Keys Added To CBS Radio's "We Can Survive" Lineup
In Brief - October 13, 2014
October 10, 2014
eQB NOW
The Week In Review: 10/6-10/10
Music News
One Direction Reveal Four Tracklist
The Week In Review: 10/13-10/17
Quick Hits: Iggy Azalea, U2, Snoop Dogg / Pharrell, iHeartRadio Fiesta Latina
Pitbull Goes Global In November
Quick Hits: Sam Smith, MTV EMAs, Songwriters Hall of Fame, The Pixies, Fall Out Boy, Bonnaroo
Jason Aldean, Hozier Top Album Sales Chart
Quick Hits: Foo Fighters, Prince, Ariana Grande
Taylor Swift Taps Into the '80s For "Out Of The Woods"
Quick Hits: One Direction, Christina Aguilera / The Voice, Jack White, Kelly Clarkson, T.I., Wilco
Iggy Azalea Leads 2014 AMA Nominees
Quick Hits: Foo Fighters, Soul Train Awards, Iggy Azalea, Noel Gallagher's High Flying Birds, Alicia Keys & David Byrne, Forbes Under 30 Music Festival
THE WHO HITS 50! Tour Set For North America 2015
The Week In Review: 10/6-10/10
FMQB Retro-Active: Ken Sharp Revisits the Magic of The Turles With Singer Howard Kaylan
Quick Hits: Katy Perry, Taylor Swift, Foster The People, Counting Crows, Ben Harper & The Innocent Criminals
FMQB NOW

Chris P, PD
KRQQ & KMIY/Tucson

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!