Eminem Lawsuit May Result in Higher Royalties for Older 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.
Em’s original contract stated that individual songs sold online would count as a license rather than a sale.
A license would pay the artist 50 percent of the song while a sale would only relinquish 12 percent, which is what the Detroit rapper was being paid.
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.
So what does this mean? It affects the artists that had contracts way before digital sales existed.
The language in that paperwork may only be granting some singers, rappers and musicians a sale royalty rate instead of a licensing one that would increase their income.
There are heavily downloaded songs that labels are benefiting from in today’s declining record industry.
UMG most likely set off a warning for majors to take action before artists catch wind. Stay tuned.