After the whole hacking incident, Sony isn’t messing around!
Last year, a lawsuit was filed against Sony Music by 19 Recordings — the record label founded by American Idol creator Simon Fuller — which reps artists like Kelly Clarkson, Carrie Underwood, and Clay Aiken.
The label claimed they weren’t being appropriately compensated by their distributor, explaining that Sony was robbing Idol stars of their money through tricky accounting and streaming services like Spotify!
Now, Sony has fired back with new court documents, claiming that THEY are the ones who are owed a paycheck — $2 million to be exact!
According to Sony, the major music corporation paid too much royalties on digital downloads for some of the Idol stars like Clarkson and Underwood, claiming:
“The royalty overpayment resulted from the incorrect application of the royalty rate associated with sales of Albums to these sales of Compilation Albums. The royalty rate associated with sales of Records other than Albums should have been applied to these sales of Compilation Albums.”
So, Sony says they applied the wrong royalty rate for those DLs — but whose fault is that?!
Sony also claimed in 2011, they gave 19 Recordings too much dough in the form of an advanced payment for an album from country singer Kellie Pickler.
19 Recordings is still evaluating these new claims made by Sony, so it’s unclear which party is at fault as of now.
After all this is settled, we think the record label might want to follow the advice of Kelly Clarkson and Breakaway from the music conglomerate!!
[Image via Mr. Blue/Ivan Nikolov/Judy Eddy/WENN.]