Victory for Eminem producers in iTunes royalty case

9th September, 2010 by adina
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FBT Productions, producers of Eminem, have scored an important victory in a case against Universal Music, regarding iTunes royalties. An earlier court decision has been rejected by a court of appeals. The former decision suggested that ringtone and song sales at iTunes should be treated similarly to CD sales, returning only 12 percent in revenue to the creators of the music. If the ruling was carried through, Universal sublabel Aftermath would pay FBT 50 percent of its intake, under a contractual provision treating sales of iTunes as reusing masters.

The ruling may apply particularly to the relationship between FBT and Aftermath and could have even larger implications in the music industry. As a consequence of Eminem’s success, Universal would have to pay FBT important amounts of cash. Other production studios as well as musicians could also require an increased share of digital royalties.


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