Wednesday, March 21, 2012
Temptations vs Universal
The Temptations are suing Universal Music Group (read more). "The group is filing against UMG over a number of royalty concerns, and part of a growing class action lawsuit sparked by Eminem's publishing group, F.B.T. Productions... Together, the major labels license 80 percent of the music downloads sold by music download providers to end users in the US.
Not only is it the issue of digital download royalties at stake but also revenue from streaming services.
"... Just last week, Spotify investor Sean Parker admitted that artists are frequently not getting paid a portion of upfront advances by their labels. Well, count the Temptations as Exhibit A: the group really has no idea what Spotify is paying UMG, or how much they should be getting paid.
[from the legal filing] "Some music streaming providers have paid large upfront fees to labels, such as UMG, to acquire rights to large catalogs of music. Due to non-disclosure agreements signed between music streaming providers and labels, artists (such as the plaintiffs and the class action herein) are not provided with any details about these payments, and there is little transparancy about how - and if - that money makes its way to artists. On information and belief, UMG does not provide appropriate royalty payments to its artists from the licensing income it receives from music streaming providers."