News: Update: Former Eminem Producers Lose Digital Lawsuit
Sunday, Mar 8, 2009 6:45AM
Universal Music Group (UMG) has won a jury verdict over iTune download royalties filed by former Eminem producers.
The final decision was made in a California courtroom against F.B.T. Productions.
A jury in Los Angeles rejected arguments by F.B.T. Productions LLC that Eminem is entitled to half the net receipts the record company gets for the downloads, rather than his standard royalties from record sales. The producers, who first signed Eminem in 1995, get 40 percent of the royalties. "It's a big disappointment," Joel Martin, one of the plaintiffs, said after the verdict was read. (Bloomberg)
However, F.B.T. won a small portion in a separate claim against UMG.
Eminem's F.B.T. Productions did win $159,000 in a separate claim that said UMG had made accounting errors in payments of royalties between them and Eminem. F.B.T., owned by brothers Jeff and Mark Bass, discovered Eminem and signed him to an exclusive recording deal in 1995. As such, they sued UMG, the world's largest music company, on the rapper's behalf two years ago, saying UMG did not deserve the more than 80 percent of the profits they were making on his music. (The Wrap)
The Shady Records labelhead was originally believed to be behind the suit.
"Eminem is not a party to this lawsuit," [said a rep for Slim Shady]. The real plaintiff is F.B.T. Productions, a music publishing company affiliated with the rapper early in his career, which is taking Universal to court today in a bid to score millions in profits from digital download revenues, including iTunes and ring tones. (Entertainment Weekly)
UMG released a statement to SOHH, upon winning the case.
"We are pleased with the jury's verdict," it read.