Lost Appeal Could Cost Universal Music Group

Case Returns To Lower Court

In a ruling on FRIDAY (10/15), the U.S. 9th Circuit Court of Appeals based in SAN FRANCISCO dismissed an appeals request by UNIVERSAL MUSIC GROUP that had sought to overturn a decision that will see them pay out higher royalty fees to producers like EMINEM. The case is now set return to a lower court in LOS ANGELES for a final decision.

UMG was appealing a decision last month that ruled profits made by the label on digital media sales should be distributed more equally between the firm and artists or producers.

EMINEM's FBT PRODUCTIONS and other producers initially filed.

The ruling will affect standard recording contracts that were signed prior to the rise of digital media such as iTUNES. New rulings could mean that music sold on iTUNES will not count as music sales -- but instead as profits from licensing agreements.

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