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
iHeartMedia Promotes Senior Programmers To Executive Vice Presidents
CBS Radio Celebrates Grammy Awards With Over-The-Air & Digital Programming
February 9, 2016
RAB: Radio Increasing Focus On Digital Sales
107.1 The Brew Is Sacramento's New Home For Rock
In Brief - February 9, 2016
February 8, 2016
"Saturday Night Online" Rebrands As "Most Requested Live With Romeo"
iHeartMedia Names Travis Moon Director of Country Operations for the Austin-San Antonio Region
Entercom Kansas City Announces Appoints Alan Furst PD Of KMBZ
February 5, 2016
Stu Bergen Named CEO, International & Global Commercial Services For Warner Music Group
JoJo Turnbeaugh Named SVP of Programming for iHeartMedia Las Vegas
In Brief - February 5, 2016
February 4, 2016
John Strazza Joins RECORDS
Greater Media Promotes Buzz Knight to SVP of Program Development
MIWs Announce Results from 2015 Gender Analysis
February 3, 2016
Leslie Moonves Named Chairman Of CBS Corporation
FADER Label Annouces New Distribution Deal With Caroline
Jeff Hickcox Returns To Beasley SWFL As Promotions & Events Director
February 2, 2016
SiriusXM Reports Major Subscriber Growth, Record Revenue in 2015
BMG US Promotes Zach Katz To President Of Music Publishing
Bentley Named MD/Afternoon Drive Host at WEDG/Buffalo
SoundExchange Ends Record-Setting Year, $800 Million to Recording Artists and Record Labels
February 1, 2016
Alissa Pollack Named iHeartMedia EVP of Global Music Marketing
Entercom Atlanta Announces Jeff Dauler to Lead Mornings On STAR 94
Music News
Gwen Stefani Announces New Album, Filming Live Video During Grammys
Quick Hits: The Grammys / Eagles, Adele, Kelly Clarkson, The Grid NYC
Taylor Swift Leads Nominees for iHeartRadio Music Awards
Quick Hits: Kanye West, Disturbed & Breaking Benjamin, Lionel Richie tribute, Seether, Lamb of God, Way Home festival, Good Charlotte
Beyoncé Announces "Formation" Stadium Tour, Releases New Single
Metallica At CBS RADIO’s “THE NIGHT BEFORE” Concert in San Francisco
Rihanna Reaches #1 With Anti
Quick Hits: Grammy Awards, Zayn, Adele, Dead & Company, The Monkees, The Neighbourhood
Earth, Wind & Fire's Maurice White Dead At 74
The Entertainment World Remember Maurice White
Quick Hits: Rihanna, Lady Gaga, Future, The Lumineers, Stone Temple Pilots
Justin Bieber, Pitbull and More Added to Grammy Lineup
Quick Hits: Miley Cyrus, Iggy Azalea, Taylor Swift, Future
Lady Gaga to Honor Bowie at Grammys, Sing National Anthem at Super Bowl
Quick Hits: Juno Awards, Metallica, Guns N' Roses, Grammys, Joe Bunch
FMQB NOW

Mike “OD” O’Donnell, OM
Entercom
Scranton Wilkes-Barre, PA

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!