Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Entertainment Law & FinanceLJN NewslettersNewsSections

Rulings in Artist, Producer Digital Royalties Cases

By Stan Soocher
March 30, 2009

The federal jury verdict for Universal Music defendants, in a suit over digital royalties brought by a production company entitled to a share of rapper Eminem's royalties, was a loss for artists and producers seeking 50% of a label's net revenues from digital download and ringtone sales of the artist sound recordings.

Last year, the U.S. District Court for the Southern District of New York dismissed a class-action, breach-of-contract complaint by the Allman Brothers Band and Cheap Trick. Allman v. Sony BMG Music Entertainment, 06 CV 3252(GBD) (S.D.N.Y. 2008). The Southern District found that sales of Sony Music artist sound masters through digital licensees for “recordings that are distributed to consumers via transmission of digital music files” were through “normal retail channels,” which would relegate the artists to the lower royalty rate for those types of sales, rather than 50% of record-label net revenues from third-party licenses. (The Allman Brothers Band have also sued Universal Music in Manhattan federal district court seeking 50% from digital exploitations of the band's Capricorn Records catalog.)

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

The DOJ's New Parameters for Evaluating Corporate Compliance Programs Image

The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

A Lawyer's System for Active Reading Image

Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.