Record Labels May Owe Artists Close To $2 Billion; Lawsuits Ramp Up With Rick James In The Lead
from the i'm-rick-james... dept
With the Supreme Court rejecting the appeal of Universal Music concerning how much it owes Eminem for iTunes sales, we expected a bunch of lawsuits to be filed, and that's starting. The estate of Rick James has filed a class action lawsuit on behalf of other artists who also believe that Universal incorrectly paid them for similar digital sales.If you don't recall, the key question is whether or not digital "sales" are really "sales" or "licenses." That's because old record label contracts (the newer ones, not surprisingly, have been changed) gave artists a very small percentage of royalties on "sales," which was supposed to be about CDs, vinyl and tape, and a much higher percentage on "licenses," since there's not much involved in a license. Eminem and some other musicians have been suing the record labels pointing out that iTunes and ringtones appears to be a lot more like a license than a sale, and thus they should get the (much) higher royalty rates, and the appeals court agreed with Eminem. I'm not sure the status of some of the other lawsuits in this space, but with this new class action, I'm sure we'll be hearing about plenty of these lawsuits soon.
While Universal Music keeps insisting that the Eminiem contract was "unique" and had special language that makes the ruling only applicable to Eminem, clearly these other musicians do not agree. David Kusek has done some (ha ha) back of the iPad calculations to estimate the potential liability for the record labels at close to $2.15 billion.
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Filed Under: contracts, licensing, rick james, sales
Companies: universal music
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Boned I Tell You, Totally Boned !!! We're all gonna die ... okay maybe just the labels ;)
Time to revise my prediction of when the labels will fail downward again ... maybe I should just go with Thom Yorke's its "only a matter of time -- months rather than years -- before the music business establishment completely folds" and be done with it.
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Charlie is just whining
The labels have backed themselves onto long narrow bridge with an Army of lawyers on either side and a river of boiling lava beneath. The only question is to whether either Army makes a deal with the labels and turns on the other Army.
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Should I not be smirking? Heh.
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WHEN iPADS ATTACK!
And now, back to "Hitler was a Nazi, part 9001".
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iPad
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Re: iPad
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The iPhone is a phone that can play games...
I kid you not, there is no difference other than size!
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And not just for the amount they could lose in a lawsuit, but what they're making just from iTunes,...
And just the major labels, all 3-4 of them?
Would those losses (and profits) basically double if you lump in Amazon sales?
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Life Lessons
Personally, I can't think of a more applicable example of this life lesson in a business scenario....
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Do you know how hard it is to spin numbers around to NOT pay you guys? I mean, we had to put the accounting and legal department into overdrive for three months to come up with creative ways not to pay you guys.
And now, after all we've done for you, you artists actually want to be paid? You think we are made of money? Lobbying is expensive!
Bunch of ungrateful *%$+#!
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FTFY
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royalties
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What did Rick James' hand from beyond the grave say to the labels' face?
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Precedent?
Meaning, if they argue in court that these are all sales instead of licenses, can anyone in another case bring this one before the judge and say "Your honor, the record companies testified under oath that these were sales, but now they are arguing license..."
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Re: Precedent?
At least that's my shallow knowledge of law tells me.
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Which I predict will be the next lawsuit by artists no matter which way this current appeal goes/
Whatever way the labels are screwed, since it seems that the labels have been engaged in a major theft from Artists. A theft that is a real theft in the legal sense, though it is also called by its other legal name... Fraud
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That's like saying that corporations represent their workers or politicians represent their voters. Regardless of the process that involves these people coming to power, whether it be the illusion of voting or fronting the initial investments, it's all a farce. These types of people only ever represent the interests of the greedy and power-hungry.
It's like the labels are parents who starve their kids but then turn around and tell others in society that when they don't give them money, those others are taking food out of their children's mouths.
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And they'll probably have no problem paying it, considering how big the check will be that Limewire is gonna be writing next month.
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Text is a bad purveyor of sarcasm... If this is a joke, please let us know. But I'm just saying, April Fool's was 4 days ago.
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Oh yeah, that rich (pun most certainly intended).
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**Camera zooms in**
R.L.E.: One Million Dollars!
**Whole world bursts out laughing**
R.L.E: What the...oh right. What I meant was, we'll sue Limewire for...
**Camera zooms in**
R.L.E.: One Trillion dollars!
**Whole world bursts out laughing again**
WW: Oh, wait. Are they serious?
Another possible variant could be:
WW, after bursting out laughing: This is 2010. After the economic meltdown, that amount of money doesn't even exist anymore!
So, in short, that is a joke.
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I was also referring to all the previous scandals relating to the non-payment of royalties, payola schemes, and royalty fund embezzlement.
Also, I'll be quite surprised if Limewire actually hands a big check over to the labels anytime soon.
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So yes, they will be paying up after their court date next month.
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Just do what any decent label or studio would do, abandon ship NOW!
ps: Is not for nothing all movies produced today have their own companies created as LLC's, if anything goes wrong they just live that virtual company to sink and clean their hands off of it.
Quote:
Source: Wikipedia LLC
There is always a way around liability laws.
UPDATE:
Yup, Limewire is an LLC.
Lime Wire LLC
So Limewire has no money and it all has been transferred through payments to other parties, that ship can sink now and people can start a new LLC somewhere else LoL
I hope that LLC is in Texas that have some of the more liberal LLC regulations in the world, you can't even find who is being one there.
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Joke's on them. I stopped being a consumer of their crap a long ago. I buy 2nd hand CDs off of Amazon or Ebay if I really want anything they've produced. Most of my entertainment dollars goes to indy local talent.
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Copyright as a commodity defeats the purpose of copyrights
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sale or NOT
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Re: sale or NOT
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Karma
You live by the Big Copy sword, you die by the Big Copy sword.
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WAIT!
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