The judge said that the language of the agreement governing these types of deductions was ambiguous, but pointed to evidence that the record labels understood that it could only be applied to stuff like audio-tapes and CDs.
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In other words, 50 percent merely set a threshold on the general issue of how to treat digital income it didn’t tie up all the loose ends on the calculation of damages.Īftermath’s big argument after the 9th Circuit remanded the case was an attempt to apply “new medium and container deductions.” The plaintiffs argued in response that the costs of licensing digitally were negligible. It remains to be determined what figure that 50 percent is applied to.” (ital ours) Under the Masters Licensed provision, FBT and Eminem are generally due royalties of 50 percent. District Judge Philip Gutierrez noted in an October order responding to the parties’ dueling summary judgment motions, “The 9th Circuit only determined that the Masters Licensed provision dictates the royalty rate for proceeds from permanent downloads and mastertones. (Eminem was given a raise in his percentage.)Īs U.S. also is getting a large share on Eminem’s latest releases, Recovery and Relapse, even though in 2009, after the litigation was filed, Eminem and Aftermath signed a new recording contract that explicitly pegged new royalty rates on sales and licenses of his new work. Against the defendants’ objections, F.B.T. We also understand that audit reports have also been prepared for the periods of 11. Keep in mind that this audit report only includes the time period between 2005-2009.
You’ll also see that Aftermath held onto more than $2 million to pay its own legal costs in this very dispute.
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Dre‘s production work and the cost of his chartered air travel and allegedly overstated the cost of doing TV ad campaigns on the “Curtain Call” album. military bases allegedly withheld proceeds from litigation wins against Kazaa, Napster, and YouTube allegedly messed up royalty calculations on tracks said to contain third party contributor like Dido or sampled work from Aerosmith allegedly deducted too much for Dr. It’s claimed, for example, that Aftermath held back too much on vinyl sales of albums including “Slim Shady,” “Marshall Mathers,” “Eminem Show,” “8 Mile Soundtrack,” and “Curtain Call.” The record label also allegedly made accounting errors on units sold at U.S. You’ll also see above that the auditor turned up all sorts of underreported income apart from the digital music issue. claims is owed by Aftermath for this time period: It represents the years when iTunes first burgeoned as an income source for the record industry. But we’ve gotten ahold of one audit report, prepared by plaintiff’s auditing expert Gary Cohen, which covers the period between Jand December 31, 2009. Many of these audit reports remain under seal. In preparation, both sides investigated the spoils of Eminem’s lucrative career. It also shows the other ways that record labels supposedly withhold too much income from artists, from overstating the costs of advertising on TV to not sharing the proceeds of litigation winnings. The report, which is being vigorously disputed by the defendants, represents millions of dollars in claimed revenue from digital downloads. In advance, THR has obtained the audit report prepared by the plaintiff’s accounting expert that F.B.T. Productions, the 9th Circuit Court of Appeals largely blessed the “license” interpretation, remanding the case down to the district court level to figure out what was owed by Aftermath Records, a subsidiary of Universal Music Group.Īt an upcoming jury trial, the two sides will fuss over exactly how much money is due to Eminem’s production team.
In 2010, in a breakthrough case involving Eminem’s producers, F.B.T. If this data is unavailable or inaccurate and you own or represent this business, click here for more information on how you may be able to correct it.The answer is coming soon. VIEW ADDITIONAL DATA Select from over 115 networks below to view available data about this business.
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