San Francisco – A federal appeals court has overturned a
victory for Universal Music Group in a dispute over how much it royalties it
owes rapper Eminem for digital sales of his songs, Bloomberg reported.
ruling found that Eminem-affiliated FBT Productions was only entitled to the
same royalty rates on sales of downloads and ringtones he received for sales of
physical products like CDs.
The U.S. Court of Appeals in San Francisco said the
lower court erred in siding with Universal’s reasoning, and FBT is entitled to
a 50% royalty under its contract with Universal.
Universal Music told Bloomberg
it intends to ask for a rehearing at the Court of Appeals.
meantime, it should be noted that this ruling sets no legal precedent as it
only concerns the language of one specific recording agreement," Universal
spokesman Peter Lofrumento told Bloomberg.
(DMW previous coverage)