The Estate of funk and R&B singer Rick James who died in 2004 and was popular in the 70s and 80s best known for the song Super Freak is suing Universal Music Group (UMG) for half of all the digital royalties.
By Back in 2009, Eminem and his FTB Productions launched a successful $1.3 million lawsuit argument was when his music was sold on iTunes, this fell under the umbrella of licensing and not a regular sale. This meant that all digital profits should be split 50/50, rather than the artist being given a standard sales royalty (around 12 to 15 percent). Eminem lost at the trial court but won on appeal.
The estate litigation is citing the FTB case as precedent for why it should treat digital music sales as a licensing agreement. Further the James estate filed the estate litigation as a class action lawsuit, so that other artists with similar claims could join in the case.
Universal has claimed that the previous FTB case has no bearing on its digital sales agreements with other artists. James's estate disagrees saying that the FTB case means that Universal now owes money based on that previous lawsuit's outcome. The Estate Litigation says "[UMG] has systematically violated its contractual obligations to plaintiff and other members of the class."
Most modern music contracts clearly state how digital sales will be split Billboard reports. Musicians who agreed on contracts before the rise of iTunes, though will very likely be paying close attention to this estate litigation on behalf of the Rick James estate and others with similar claims.
The estate litigation is citing the FTB case as precedent for why it should treat digital music sales as a licensing agreement. Further the James estate filed the estate litigation as a class action lawsuit, so that other artists with similar claims could join in the case.
Universal has claimed that the previous FTB case has no bearing on its digital sales agreements with other artists. James's estate disagrees saying that the FTB case means that Universal now owes money based on that previous lawsuit's outcome. The Estate Litigation says "[UMG] has systematically violated its contractual obligations to plaintiff and other members of the class."
Most modern music contracts clearly state how digital sales will be split Billboard reports. Musicians who agreed on contracts before the rise of iTunes, though will very likely be paying close attention to this estate litigation on behalf of the Rick James estate and others with similar claims.
Source: Exclaim.ca - Alex Hudson
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