Legal News

9th Circuit rules UMG pays the pied piper in Eminem licensing case

By Richard Binder

F.B.T. Productions, Eminem's music publishing company, sued Universal Music Group in 2006 on behalf of the rapper, saying that the record company was taking too much in royalties from Eminem's music. At issue were the downloads from iTunes, which the publishing company's attorneys claimed were "licensed" rather than sold like typical CDs.

A District Court judge sided with UMG and awarded Universal more than $2.4 million in legal fees. The 9th Circuit, however, recently ruled that the specific contract between Eminem and UMG "unambiguously" says that iTunes sales count as a license, for which royalties should have been 50% of the net receipts.

UMG is downplaying the possible industry consequences of the ruling, saying it was exclusive to the terms in F.B.T.'s contract. 

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Full post as published by Legal Pad | LA on September 07, 2010 (boomark / email).