Universal Wins Royalty Case Againt Eminem Producers

Universal Music Group avoided disaster Friday (March 6) after a federal jury ruled in favor of the current business model for royalties in a lawsuit involving Eminem’s catalog.

Mark and Jeff Bass of F.B.T. Productions, the duo responsible for many of Em’s earlier work had sued UMG for $1.3 million in unpaid royalties. They alleged that music sold digitally—both as songs and ringtones—constituted as “masters” and thus commanded a standard 50% royalty rate as opposed to the 12% rate they received for traditional CD sales.

However, the Los Angeles Times reports that the jury agreed with UMG’s understanding that there was no difference between a song purchased in a store and one purchased online. In response, the Bass brothers have vowed to keep fighting, though they were awarded $159,000 in underpaid royalties.

The media conglomerate also made headlines a few days ago with their efforts to create a premium music site in partnership with YouTube. Tentatively titled “Vevo,” the site would increase ad and viewing revenue by commanding rates greater than those currently offered by YouTube. – Devin Chanda

  • http://www.justice.gov.za GO-Getta’

    Relapse 1 & 2 will never c the light of the day.

    Independent is the route to go f**k major labels politics.

    Em is detoxin’ on us just like Dre ass.

    • RDS

      Just so you know, this had absolutely nothing to do with Eminem personally. It was just about his producers. And Relapse will come. Universal’s not stupid. Have you seen the sales of his albums post-Infinite?

  • Nate

    RDS is correct. Eminem hasn’t put out a album because he doesn’t mind perfecting it and doin g it within Dre’s timeframe. Also don’t forget they both suffered from Eminem’s best friend and reason for his career dying (RIP Proof), not to forget his artist Obie getting shot in the head, and he doesn’t rush because he likes spending time with his family. (He doesn’t need the money) Dre’s son’s also passed last year, and this sort of event takes a toll on the work life.

    Em’s album will hit in 2009. Relapse we never know till we see Dre going on Leno to promote it or if you see it in the store..

  • Nate

    Correction: I intended to use “Detox” and not “relapse” in the final sentence.

  • SOFAKING

    This site has more grammatical errors than a bitch.