Eminem is spearheading a lawsuit that could be bringing artists a hefty payday in the near future!
The rapper, who slapped Universal Music Group with a lawsuit 2 years ago regarding the royalties of digital downloads, is going to court over the dispute today!
The debate is whether song downloads should fall under the category of a licensing deal or a distribution deal. A licensing deal would split the profits 50/50 between the record label and artist, while the current distribution deal in play only provides the artist with less than 20 cents per download!
Multiply those figures by a couple hundred thousand, and you’ll end up with a large amount of $$$ missing!!
Feminem’s lawyers are claiming digital downloads should fall under “traditional licensing agreements”, which would bring the rapper over $1.3 million dollars in royalties dating back to 1998. His lawyers are counting on using the wording of distribution agreements between Universal and digital music distributors, such as Apple/iTunes who used the phrase “license rights to distribute music from others” in their terms with the record group.
Jimmy Iovine, founder of Interscope (a Universal subsidiary and home to Fem), is expected to testify in person while Steve Jobs, CEO of Apple, is expected testify via video chat.
Fem will be absent from the trial.
Boring!
If Eminem & Co. win the lawsuit, this would mean some giant checks will be made out to the artists under Universal, including Jay-Z, U2, and Kanye West!
[Image via WENN.]