WMG Settles Class Action Royalty Suit
February 17, 2014 at 12:08 PM (PT)
WARNER MUSIC GROUP has reached a settlement valued at a minimum of $11.5 million in a class action lawsuit over how it calculated royalties for downloads and mastertones of recordings. WARNER MUSIC GROUP denies any wrongdoing.
People who have the right to receive royalties from contracts dated before JANUARY 1st, 2002 with a WMG U.S. Label that pays on a Royalty Rate Basis or a Penny Rate Basis may be eligible for cash payments for past royalties paid; and/or an increase in download and mastertone royalties going forward. The increase in future royalty payments will give artists an increase of 5 percentage points in their royalty rate on U.S. exploitations of downloads and mastertones (or more if necessary to reach a floor of 10%, capped at a maximum of 14%) and a 2.5 percentage point increase on foreign exploitations.
In order to receive benefits from the Settlement, a valid claim must be submitted by MAY 31st, 2014.
People who want to keep the right to sue WARNER MUSIC GROUP must exclude themselves from the Settlement by MAY 31st. People who stay in the Settlement may object to it by May 31st. People who do not exclude themselves or who do nothing will be bound by the Court's decisions.
The Court will hold a hearing on OCTOBER 2nd, 2014 to consider whether to approve this Settlement and a request for attorneys' fees up to $2,875,000 plus reimbursement of costs and expenses. People impacted may appear and speak, or may hire their own lawyer to appear and speak, at the hearing at their own expense.
More information about the Settlement, including rights and benefits, is available at www.wmgdownloadsettlement.com.