Universal Music Group is finally settling a class action
lawsuit over the way digital singles are classified. This
classification has become an ongoing debate. UMG was paying
artists based on traditional sale rates, but artists argue that
the downloads should be classified as licences.
This particular lawsuit was brought about by the estate of Rick
James, Chuck D of Public Enemy, and others against UMG
Recording and Capitol Records.
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The terms of the lawsuit still have to be approved by the
court, but this is the agreement so far:
UMG will pay up to $11.5 million to pay class members for past
digital downloads, they’ll cover attorney fees and costs, and
going forward they’ll increase class members’ download
royalties by 10 percent.
The details and information on how to submit a claim will
be available online. There’s nothing on the website
yet, as UMG didn’t bother putting any information up before
sending out the link in a press release.
Photo by Bart on Flickr used with the Creative Commons