Saturday, February 28, 2009

Eminem sues Universal over digital royalties

The US rapper's lawsuit could set a precedent for artists distributing their music through digital downloads

Eminem's publishing company, FBT Productions, is suing Universal Music Group for $1.6m (£800,000) in alleged unpaid royalties. But what's at stake is not just an unpaid bill – it's the definition of digital royalties.

When a song or ringtone is bought online, at the iTunes Music Store or anywhere else, the artist receives a royalty. The amount of this royalty is governed by a contract between labels and artists. For many artists, however, that digital royalty is not explicitly stated – millions of contracts, after all, predate iTunes and did not anticipate the boom in digital music sales. click here for more details