"Chuck D's complaint follows a federal judge's decision on Tuesday to move forward on a similar class action pursued by Rob Zombie and the estate of Rick James [more here]."
Digital Music News has published documents that back up Chuck D's claims. "According to federal court documents filed Wednesday by attorneys for Chuck D. The detailed breakdown shows that for every 1,000 iTunes downloads sold, a UMG-signed artist gets paid $80.33. And that's after the label collects on a 25% 'Container Charge for Audiophile Records,' as well as a 15% 'Net Sales Deduction'. Which means that for every one download, the payout is roughly 8.033 cents."
" the ringtone payout is loaded with even more artificial ingredients, including the same 'Audiophile Packaging Deduction'. In fact, despite a much higher price tag on ringtones (ie, $3 listed here), the major label artist gets a paltry per-ringtone payout of 5 cents."
ADDED: And Now, Chuck D Is 'Complicating' the Sale of EMI...