A Los Angeles jury says the record company doesn't have to pay producers more for songs sold online, upholding the music industry's business model. A federal jury in Los Angeles ruled Friday that Eminem's music royalties don't change just because a song has been sold online.
The Detroit music producers who were involved in the rapper's early works, including his 1999 Grammy-winning album, "The Slim Shady LP," sued Universal Music Group's Interscope Records, accusing the music label of shortchanging them on royalty payments for music downloads and cellphone ring tones.
Mark and Jeff Bass, brothers who own F.B.T. Productions, said their contract entitled them to 50% of the proceeds for songs sold through online stores including Apple Inc.'s iTunes or by cellphone operators such as Sprint.
They argued that the songs Universal provided to online and mobile services amounted to music "masters," from which infinite digital copies could be produced. As such, F.B.T. said it was entitled to a higher royalty rate than the 12% they would otherwise receive on the sale of a song or music CD.
The jury sided with the music company's interpretation that a song purchased online is no different from one bought in a store and did award $159,000 from F.B.T. owed from underpaid royalties.
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