Eminem Managers Sue Labels For Download Royalties
May 22, 2007 at 11:42 AM (PT)
A NASHVILLE law firm representing two companies that manage rapper EMINEM -- MICHIGAN-based F.B.T. PRODUCTIONS and Em2M LLC -- filed a lawsuit in federal court in LOS ANGELES yesterday (5/21) claiming AFTERMATH RECORDS, INTERSCOPE RECORDS, UMG RECORDINGS and ARY INC. have failed to pay them royalties owed from legal downloads, the TENNESSEAN reports.
The managers want 50% of the cut from every download purchased or ringtone sold because, the suit claims, by contract the management team should get 50% of all receipts "for the sale of records or other uses of the masters." The suit further states that an audit completed in FEBRUARY 2006 showed the companies had lost out on $650,000 for the digital mixes and they are now owed more than $1 million.
RICHARD BUSCH, a NASHVILLE attorney with the firm KING & BELLOW, said, "We are bringing this action based upon the specific language of our contracts with UMG."
Representatives with the recording companies could not be reached for comment.