March 30, 2011 Eminem Lawsuit To Change Royalties For Artists

Eminem Lawsuit To Change Royalties For Artists

F.B.T. Productions, the company that originally signed Eminem filed a lawsuit against Universal Music Group that may help artists get more money from digital sales.

Eminem’s suit argued that at least according to the language in his record contract, individual songs sold online count as a license rather than a sale.

This may seem like a minor semantic argument, but according to Eminem’s contract – and many others drafted before digital sales were realistic – it is the difference between the artist being paid 50 percent of royalties for a license or 12 percent for a sale.

The Supreme Court ruled against the appeal filed by UMG since they lost the case last year and now what is estimated to be around a $20 million value in unpaid royalties shall increase to somewhere around $50 million within the next decade.

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