Eminem Suing for iTunes Royalties

Shady’s back, back in court.  This time, the hip-hop superstar is the plaintiff.  He’s suing Universal Music Group, claiming he has been severely underpaid on royalties for digital distribution of his music.  According to The Wrap,

The difference in monetary gain for artists is potentially huge. Under traditional licensing agreements, which cover records and CDs, the artist splits royalties 50-50,with the record company. Extended to include digital downloads, that could mean as much as 35 cents for the artist for every iTunes purchase. Under a distribution arrangement, the artist might see less than 20 cents.

In Eminem’s case, that adds up to $1.5 million, but the repercussions for the music industry could be huge.  Apple had revenues of $3.34 billion from the iTunes music store in fiscal 2008.

Eminem’s motion for summary judgment was denied.  Trial was scheduled to begin yesterday.

The BigLaw connection – Munger, Tolles & Olson is UMG’s outside counsel.  We’re not familiar with the plaintiff’s firms: King & Ballow or Glaser, Weil, Fink, Jacobs, & Shapiro.

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