Eminem loses iTunes royalty lawsuit

Mon, Mar 9, 2009

Legal, News

Cleanin’ out my docket. Wow, a new level of nerdity.

Eminem’s production company, FBT Productions, recently lost their legal case against Universal Records where they alleged that artists should be entitled to higher royalty rates on sales made via iTunes. The demand for higher royalties wasn’t limited to music, and was actually made to encompass all forms of digital sales such as ringtones. Eminem himself wasn’t party to the case, but his production house is entitled to 40% of Em’s royalties, which helps to explain why it was initiated in the first place.

The case recently came to a close when a Los Angeles jury decided in favor of Universal. As part of their decision, they stated that iTunes is a distribution channel just like any other, and a song bought on iTunes shouldn’t be treated any differently than a song purchased in a store.

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