Report: Universal Music Group To Settle Class Action Suit Over Royalties With Artists

Let's Make A Deal

UNIVERSAL MUSIC GROUP expects to settle a major U.S. class action lawsuit with a group of artists in the near future, MUSIC BUSINESS WORLDWIDE reports. Reportedly, the settlement includes a "significant offer of monetary compensation."

In 2011, a group of recording artists -- including PUBLIC ENEMY’s CHUCK D, ROB ZOMBIE, WHITESNAKE, the RICK JAMES Estate, and RON TYSON of THE TEMPTATIONS -- filed a claim seeking additional royalties for the online sale of downloads and master ringtones. They wanted such royalties paid on "license" terms (typically  a 50/50 split between label and artist) rather than "sale" transaction terms (where the artist receives anywhere from 6-20%).

In 2012, FBT Productions, the production company that discovered EMINEM, settled with Universal out of court in a similar case. Last FEBRUARY, it was reported that WARNER MUSIC GROUP settled with 2,000 artists for $11.5 million.

UMG owner VIVENDI has announced that a "global transaction terminating the litigation" with the class action artists was submitted to U.S. District Judge SUSAN ILLSTON and entered into on APRIL 14th this year. The artists apparently have accepted the settlement, which VIENDI expects "to be formally approved by the Court shortly.”

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