Allman Brothers Sue UMG For $13M In Unpaid Digital Royalties
August 12, 2008 at 5:34 AM (PT)
Members of THE ALLMAN BROTHERS BAND have sued UNIVERSAL MUSIC-owned UMG RECORDINGS for about $13 million, over royalties from compact discs sales and digital downloads services, reports REUTERS. The lawsuit, filed in MANHATTAN federal court, said UMG "refuses to pay Plaintiffs at the correct royalty rate for its digital exploitation of the CAPRICORN Masters," including from CDs, digital downloads and ringtones.
The specific disagreement is on a 1985 agreement between the band and POLYGRAM, which UNIVERSAL later bought, that said the band would be paid half of profits on any other commercial usage not specified in the agreement, but UMG had paid only a small fraction of what the band said it deserved, and refused to renegotiate royalties for digital downloads and ringtones.
The Southern rock group was formed in the late 1960s and was inducted into the ROCK AND ROLL HALL OF FAME in 1995.