http://www.freep.com/article/20100903/ENT04/100903088/1362/Court-ruling-could-mean-millions-in-online-royalties-for-Eminem-other-artists
Freep.com
Music
Sept. 3, 2010
Court ruling could mean millions in online royalties for Eminem, other artists
By BRIAN McCOLLUM
Free Press Pop Music Writer
Eminem probably thought he'd be waking up this morning to focus entirely on his concert tonight at Comerica Park.
Instead he got a bit of unexpected news from a federal appeals court in California: some major money could be headed his way.
The decision, which one Eminem attorney calls an “earthquake” for the music industry, could transform the online song business and boost the fortunes of untold numbers of artists.
Reversing a lower-court jury decision from last year, the court ruled that Eminem and his production company are entitled to nearly triple the royalties they've been receiving for track sales and ringtones on online services such as iTunes.
For Eminem, who has sold more than 6 million downloads this year alone, that could mean tens of millions of dollars in new income.
Universal Music Group, the defendant in the case, said this afternoon it will petition for a rehearing.
The suit was filed by Ferndale's FBT Productions, which administered Eminem's record deal with Universal.
Today's ruling could have fallout in the evolving world of digital music, experts said, pushing other artists to negotiate with their labels for higher online royalty rates. It could even pave the way for some holdouts, including Detroit’s Bob Seger, to finally offer their songs online.
The decision
The U.S. 9th Circuit Court of Appeals unanimously reversed a 2009 federal jury decision in a lawsuit filed by Ferndale’s FBT Productions, Eminem’s former production company, against his label, Aftermath Records. The jury had ruled in favor of Aftermath and its parent company, Universal Music Group.
Eminem was not a direct party in the suit, but he benefits through FBT, which shares his contract with Universal.
“This potentially readjusts the economics between the artist and the record company, and that’s been long overdue,” said FBT’s Joel Martin. “It puts Eminem in a position he should have been in to begin with, which is to receive a larger portion of the download royalties.”
ARTICLE CONTINUED HERE:
http://www.freep.com/article/20100903/ENT04/100903088/1362/Court-ruling-could-mean-millions-in-online-royalties-for-Eminem-other-artists
Freep.com
Music
Sept. 3, 2010
Court ruling could mean millions in online royalties for Eminem, other artists
By BRIAN McCOLLUM
Free Press Pop Music Writer
Eminem probably thought he'd be waking up this morning to focus entirely on his concert tonight at Comerica Park.
Instead he got a bit of unexpected news from a federal appeals court in California: some major money could be headed his way.
The decision, which one Eminem attorney calls an “earthquake” for the music industry, could transform the online song business and boost the fortunes of untold numbers of artists.
Reversing a lower-court jury decision from last year, the court ruled that Eminem and his production company are entitled to nearly triple the royalties they've been receiving for track sales and ringtones on online services such as iTunes.
For Eminem, who has sold more than 6 million downloads this year alone, that could mean tens of millions of dollars in new income.
Universal Music Group, the defendant in the case, said this afternoon it will petition for a rehearing.
The suit was filed by Ferndale's FBT Productions, which administered Eminem's record deal with Universal.
Today's ruling could have fallout in the evolving world of digital music, experts said, pushing other artists to negotiate with their labels for higher online royalty rates. It could even pave the way for some holdouts, including Detroit’s Bob Seger, to finally offer their songs online.
The decision
The U.S. 9th Circuit Court of Appeals unanimously reversed a 2009 federal jury decision in a lawsuit filed by Ferndale’s FBT Productions, Eminem’s former production company, against his label, Aftermath Records. The jury had ruled in favor of Aftermath and its parent company, Universal Music Group.
Eminem was not a direct party in the suit, but he benefits through FBT, which shares his contract with Universal.
“This potentially readjusts the economics between the artist and the record company, and that’s been long overdue,” said FBT’s Joel Martin. “It puts Eminem in a position he should have been in to begin with, which is to receive a larger portion of the download royalties.”
ARTICLE CONTINUED HERE:
http://www.freep.com/article/20100903/ENT04/100903088/1362/Court-ruling-could-mean-millions-in-online-royalties-for-Eminem-other-artists
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