Eminem Wins Appeal In Royalty Lawsuit

UPDATE: Universal Plans to file a petition against the ruling, and denies any legal precedent set by Eminem winning the lawsuit.

A federal appeals court has ruled in favor of Eminem's former production company in a 2009 suit filed against Aftermath Records and Universal Music Group. The original suit, filed in 2004, called for an increased royalty share of the alleged $2.5 million Eminem's digital downloads made between 2003 and 2008.

Friday, the U.S. 9th Circuit Court of Appeals ruled Eminem and F.B.T. Productions were entitled to a 50-50 split with Universal for all recordings licensed to digital distributors such as iTunes. Various sources report UMG previously paid Eminem and F.B.T. a 12 percent royalty rate for music licensed to digital distributors, which is the agreed-upon rate for physical albums.

UPDATE: After the ruling, Universal released the following statement: "We will be filing a petition for a rehearing. In the meantime, it should be noted that this ruling sets no legal precedent as it only concerns the language of one specific recording agreement. Any assertion to the contrary is simply not true."

Ethan Smith, of the Wall Street Journal's "Digits" legal blog, explains the wording of the ruling makes the distinction that even when a customer pays for a song from iTunes or a similar digital distribution service, they are licensing the song, and not purchasing it.

"Even in some cases in which only older recordings of an artist continue to be distributed by a given label, the label and the artist have gone back to hash out the issues surrounding digital downloads," Smith notes.

Further rulings by the court, based on UMG's anticipated petition will determine if the new language in the ruling is just semantics or the beginning of a massive change in how labels and artists do business with iTunes.

12 Comments

  • MC Red Eye

    Dope Drunk Freestyle http://www.youtube.com/watch?v=wCe8HzoWLz4 Don't Sleep.

  • madclown18@yahoo.com

    @fukwhiteboyz hey dumbass, i'd be a hypocrite if I made fun of ALL masturbators, chronic masturbating is masturbating on a higher level. The fact that you find me weird for not masturbating 6-7 times a day makes you sound like a virgin. in fact, it makes you sound like a white boy, so I guess that makes you the hypocrite, you Yu-Gi-oh- card trading chronic masturbator. Get a life.

  • Quiet Dog Bite Hard

    Eminem sucks a big truck-load of steaming dicks. "yum, yum, more, more" he says. But this is a great movement for the hard working artists who continually get screwed by the companies. It's long overdue and would encourage me to buy more digitally. (You still can't beat a hard copy of an album though!)

  • BR PROMOTIONS KENNY ORTIZ

    YO IF YOU LIKE EMINEM YOU WOULD LIKE MY NEW ARTIST DUCE RIVAS HE DOESNT WEAR TIGHT JEANS AND DOESNT RAP ABOUT SWAG AND DUMBSHIT. HE A BEER DRINKIN PILL POPPIN BLUNT SMOKIN SPIC THAT DOESNT GIVE A FUCK. ORIGINAL REAL HIP HOP. http://www.youtube.com/watch?v=KxWjjjDHLnY GIVE IT A THUMBS UP OR THUMBS DOWN BUT KEEP IT REAL DONT HATE JUST CUZ HE CAN RAP BETTER THEN YOU AND YOUR CUSIN. REAL TALK!!

  • Rachael Misek

    This is good. Record labels..hmm like any label...loose their stickiness after awhile. Bye bye tyranny hello music.

  • cjrocker

    be more ignorant please. this is good for a lot of artists, if anything em should be thanked.

  • intentionalracism

    fuck this coon.

    • lolwut

      So wait? Fuck Eminem? You say that here? When he is doing something that has the potential to benefit other artists. People you like to listen to. Fuck the guy that could help out? Pfft, you are sad.

    • fukwhiteboyz

      youre a hypocrite unless you never jacked off in your life. then your just fucking weird cause probably every guy jacked off to porn a few times...

    • fuck eminems haters

      Seriously??? What the hell has eminem ever done to you two faggots? the only problem you have with him is that people call him the greatest and you close minded fucks can't understand why. Keep the hating to yourself and go back to chronic masturbating to the porn sites I'm sure fills up both of you losers' URL history. Thank You.

    • fuckeminemandhisfans

      cosign

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