Cheap Trick, Allman Brothers Suing Sony For Higher Digital Royalties - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

01:39 PM

Cheap Trick, Allman Brothers Suing Sony For Higher Digital Royalties

If granted class-action status, the case could involve thousands of artists signed to Sony since 1962 and millions of dollars.

Two rock bands are suing Sony Music and seeking class action, claiming the company short-changed artists out of millions of dollars in digital royalties.

Cheap Trick and the Allman Brothers Band filed a lawsuit in New York last week, claiming that Sony continues charging distribution fees for downloaded songs. The bands claim that they deserve greater royalties for digital downloads because downloads should be considered licensing, not distribution.

"Sony Music is presently engaged in a widespread attempt to underpay its recording artists; with the technological advancements in the music industry, where many people download songs to their iPods and other portable devices, it is essential that artists receive the royalty income to which they are entitled," one of the bands' attorneys, Brian Caplan, said through a prepared statement.

Sony has not issued a statement on the issue and a representative for the company did not immediately return calls Monday.

The lawsuit argues that artists are entitled to about 30 cents per song rather than the 4.5 cents they get from physical sales because of publishing, breakage and distribution deductions. If granted class action status, the case could open up to Sony artists with deals signed since 1962. That is likely to include thousands of artists and millions of dollars.

A decision against Sony could radically alter the landscape for recording artists earning their wages in a digital age.

Actors and broadcasters are dealing with a similar issue through their unions, now that more content is available through iPods and mobile devices.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
Register for InformationWeek Newsletters
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll