Artists Seek Greater Share From Label Of Revenues From Digital Downloads

Two highly successful rock groups from the 1970s and '80s recently commenced a lawsuit in the U.S. District Court for the Southern District of New York against their former record company, claiming a larger share of revenue derived from paid digital downloads of their recordings. <br/>The essence of the plaintiffs' claim is that Sony is calculating the artists' shares of revenue from digital download sales through services such as iTunes, in the same manner that the label calculates royalties for physical sales of CDs through traditional retail outlets. The plaintiffs claim that these are not physical sales, but are instead sales of digital copies of recordings that have been licensed to music download providers by Sony, and the royalty rate payable for licensing income, which is much higher than for physical sales, should apply.

7 minute read May 31, 2006 at 08:58 AM

By

Alan D. Barson