Thursday, January 31, 2013
For years, we've been covering a key legal battle in the music business, involving producers Eminem, FBT, and Universal Music, more than the amount owed on iTunes sales. The key question is: Is this an iTunes purchase a "sale" or a "license". Old music contracts prior to the age of the Internet tend to focus on sales, in which artists tend to get royalties of about 15%. "Licenses" on the other hand, tend to be things like commercials or movies, but he sent about 50% of royalties. But when we speak of the songs on iTunes, you can do something compelling case that is either a sale or a license, according to information focus. Universal Music, of course, insisted that it was a sale of CDs. FBT argued that it was like a license. There are many other similar ongoing trial, but after losing the district court, FBT won on appeal. This resulted in a fight crazy and controversial pay much universal, universal tapping a judge to conceal income with complicated accounting counterfeit money, and even try to count the cost of this litigation goes against what they should .



However, damage phase of the case is set to go to trial in the spring, and must (1) reveals much about the black box of the accounting practices and Universal Music (2) provides a roadmap for many other similar lawsuits against Universal Music (and other majors). Given this, it should not be a surprise that Universal Music was quick to find a way to get FBT to solve ... with the terms of the agreement remain secret. This means that almost certainly UMG paid through the nose, in the hope of making it more difficult for other similar artists to earn rewards, and while allowing Universal to keep their secret for you ... for the moment


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