Universal crushes Eminem iTunes royalty case
updated 09:55 am EDT, Mon March 9, 2009
Universal wins iTunes case
Universal Music has defeated the production company behind rapper Eminem in a case centered around iTunes royalties, Bloomberg writes. FBT Productions has argued that Eminem is entitled to half of the royalties collected by Universal from sales of his tracks at the iTunes Store; Apple receives a small commission beforehand. At the heart of the dispute has been whether Eminem's arrangement constitutes a licensing agreement, or simply another distribution deal. Universal has argued for the latter, rejecting suggestions that the special restrictions on iTunes downloads create a licensing agreement by default.
A Los Angeles jury sided with this view in its decision, denying FBT the total of $1.47 million it had asked for in damages relating to unpaid track and ringtone royalties. The company has been awarded $159,000 in a separate claim of misallocated royalties, but it is believed that FBT lawyers will nevertheless appeal the verdict.
An FBT victory would potentially be beneficial to both Apple and artists, as a number of prominent catalogs -- including The Beatles and Kid Rock -- have been deliberately withheld from iTunes over revenue concerns. Such artists receive very little from download sales, claims FBT plaintiff Joel Martin. It may thus make more sense in many circumstances to force the public into buying physical albums.










Crock
03/09, 11:10am (1 reply) reply
Artists that have signed with major studios do not lose money when their songs are put on iTunes.
They lost EVERYTHING when they signed with the major studio. Their music, their performances, and their soul.
Just a thought.
en
Eldernorm
Fresh-Faced Recruit
Joined: Sep 2007
crushes?
03/09, 12:02pm reply
Is the headline a little over the top? "Wins" would be more accurate.
gor3don
Fresh-Faced Recruit
Joined: Nov 2005
CRUSHES!
03/09, 12:08pm reply
But then it wouldn't sound so EPIC. In other news:
http://www.youtube.com/watch?v=oHg5SJYRHA0
InfraredAD
Fresh-Faced Recruit
Joined: May 2001
Re: Crock
03/09, 12:36pm reply
Yeah, why should the labels make any money. All they're doing is taking all the risks: producing promoting and distributing the album.
testudo
Fresh-Faced Recruit
Joined: Aug 2001
Squinting
03/09, 05:08pm reply
Squinting at the camera makes you look so gangstah! Word.
Rezzz
Fresh-Faced Recruit
Joined: Jan 2006