Transition Music Corporation | Challenging Labels’ Classification of Digital Downloads
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Challenging Labels’ Classification of Digital Downloads

Challenging Labels’ Classification of Digital Downloads

REO Speedwagon, Boz Scaggs Sue Sony Music (Exclusive)
By Eriq Gardner

Sept. 24, 2012 
From The Hollywood Reporter

Sony Music has been hit with more litigation over the way artists are compensated whenever consumers buy songs on iTunes and other digital outlets. Late last week, separate lawsuits were filed in New York federal court by REO Speedwagon and William “Boz” Scaggs. Both plaintiffs say that Sony has breached recording contracts by counting digital downloads as “sales” rather than “leases” or “licenses.” As a result of this accounting treatment, the artists allege they haven’t been paid appropriately. The royalty rate on a sale is around 15 percent compared to a “license/lease” which is 50 percent.


Read More:
http://www.hollywoodreporter.com/thr-esq/reo-speedwagon-boz-scaggs-sony-music-373415