UMG Settles In Digital Royalty Case

Settled

The UNIVERSAL MUSIC GROUP have settled a lawsuit filed by EMINEM's producers over digital royalties. the NY TIMES reports. After A U.S. COURT OF APPEALS in CALIFORNIA ruled in F.B.T.’s favor in 2010, overturning a jury verdict by a lower court, the parties have been involved in a damages trial for more than a year until they announced a settlement in a court filing on MONDAY.

Both sides declined to reveal the terms of their agreement.

The F.B.T. case -- EMINEM himself was not a party -- opened the door for similar lawsuits from artists such as KENNY ROGERS, JAMES TAYLOR, THE TEMPTATIONS, WEIRD AL YANKOVIC and ROB ZOMBIE. SONY settled a similar class-action suit earlier this year, agreeing to pay artists a total of $8 million.

Although UMG disagreed that the settlement will establish a precedent for future digital royalty arrangements, others think it does. "The legal precedent the case set has already had a profound impact," noted DAVID M. GIVEN, a lawyer involved in a number of such cases, including one for the estate of RICK JAMES. "If UMG paid the price, which I think it probably did, then that will set the bar (which I expect will be high) for the settlement of other download royalty claims, like the ones in the RICK JAMES class action, for other recording artists."

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