Band Sues Record Label for Digital Music Distribution Ripoff torrent downloads

category News tags: music added 12.08.2008 18:33

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Lawsuit notes that Universal "incurs practically no expenses or risks to create and distribute digital downloads yet UMG reaps millions of dollars every year from such exploitation." The Allman Brothers Band have decided to sue Universal Music for more than $10 million USD over royalties from CD sales and digital downloads services, reports Reuters. The lawsuit, filed in Manhattan federal court, said UMG "refuses to pay Plaintiffs at the correct royalty rate for its digital exploitation of the Capricorn Masters," including from CDs, digital downloads and ringtones. The lawsuit centers around a 1985 agreement between the band and Polygram, which Universal later bought, that said the band would be paid half of the profits on any other commercial usage not specified in the agreement like the sale of music downloads on Apple's iTunes for example. "UMG incurs practically no expenses or risks in connection with the Masters, particularly with respect to licensing other companies such as Apple to create and distribute digital downloads .

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