Wednesday, November 30, 2011

Chuck D. Files $100 Mil Lawsuit Against Universal Music Group


Chuck D. of Public Enemy fame has filed a lawsuit against UMG (Universal Music Group). The lawsuit was filed in the US District Court in Northern California on November 2. Check D. is seeking $100 million is damages.

The lawsuit claims that UMG failed to provide a proper accounting for digital royalties, claimed by Chuck D. to be a “substantial amount of money.” Chuck also claims that UMG has failed to properly compensate him for the sales of digital downloads, as well as master ringtones.

The lawsuit is the latest in a series of legal actions filed against UMG group and other labels, since a groundbreaking ruling regarding digital royalty payments in September. That lawsuit was spearheaded by Eminem.

In that ruling, UMG lost a decision to FBT productions, which produced many of Eminem’s early recordings.
That ruling stated that FBT was entitled to a 50% royalty rate for a “Master License,” as opposed to their contractual rate, which called for 18% of every record sold.

The ruling was groundbreaking, because it was among the first decisions to address how royalty rates should be computed on emerging digital formats, versus traditional methods.

Other artists that have filed lawsuits since the ruling include Rob zombie and the estate of Rick James.

This is nothing new though, the major labels have been ripping off artists since day one. the artists have were complicit until their larger yet shorted checks started drying up. Play with fire and your bound to get burned. Don’t you agree

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