UMG Reaches Settlement In Eminem Royalties Case
October 31, 2012

On Monday, Universal Music Group and FBT Productions announced they have reached a settlement in their case involving digital royalties from Eminem's catalog. The case dates back to 2007, though a court decision was reached in September 2010, the two parties had not settled on damages. According to Billboard.biz, another trial was slated for April of next year but UMG and FBT settled privately and to both parties' satisfaction.

The FBT-UMG case began when the production company, which signed Eminem in 1995 and helped provide his earlier records to UMG label Aftermath, sued for digital download royalties. FBT claimed the downloads should count as licensed songs, not physical purchases, and thus deserved a much higher royalty rate# After the case made its way through the court system, the Supreme Court ultimately agreed with FBT's position.

While terms of the settlement were not revealed, the Detroit Free Press reports that last fall FBT said it was seeking approximately $1.5 million in damages from UMG.

Following the FBT ruling, a number of artists have filed suits against the major labels claiming they are owed higher digital royalty rates.




 
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Jon Zellner
SVPP, iHeartMedia

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