No iTunes Royalty Bonanza For Eminem

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Well, that was quick! After a trial that lasted just over a week, a jury has ruled in favour of Universal Music Group in the label’s court battle against Eminem’s former publishing company.

This means that the royalty rates doled out by digital music outlets to publishing companies won’t change.

Bloomberg: A jury in Los Angeles rejected arguments by FBT Productions LLC that Eminem is entitled to half the net receipts the record company gets for the downloads, rather than his standard royalties from record sales. The producers, who first signed Eminem in 1995, get 40 per cent of the royalties…

FBT had asked for $1.47 million in damages for underpaid royalties from downloads and ringtones. Martin said he’ll likely appeal.

A verdict for the producers could have brought millions of dollars for artists whose contracts with record labels pre-date the birth of digital download sites and mobile phone ringtones. It also might have fortified efforts of artists who have refused to sell their recordings on iTunes, such as Kid Rock and the owners of the Beatles catalogue, because they receive so little of the proceeds, Martin said in an interview during the trial.

Nonetheless, the jury did give Eminem’s former producers $159,000 on a separate claim that Universal Music misallocated royalties between them and the rapper.

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