UNIVERSAL MUSIC GROUP, on behalf of UMG RECORDINGS INC. and CAPITOL RECORDS LLC, and plaintiffs’ attorneys representing clients in class action lawsuits regarding digital download royalties today submitted a settlement for preliminary court approval.
In the lawsuit, the plaintiffs (including the estate of RICK JAMES, CHUCK D of PUBLIC ENEMY and others) alleged that UMG failed to pay proper royalties to certain artists when consumers bought MP3 files from digital music retailers.
Under the proposed terms, UMG will contribute a maximum of $11.5 million to supplement payments to class members for past digital download activity, cover attorneys’ fees and administrative costs, and also increase digital download royalties by approximately 10% going forward to class members who submit a claim. Class members can learn more about the settlement, including how to submit claims, at www.umgsettlement.com.
In the settlement agreement, UMG specifically denies the plaintiffs’ claims, and states that it agreed to settle the claims rather than continue to litigate the matter to avoid the associated legal expenses.
In a statement, UMG commented, “Although we are confident we appropriately paid royalties on digital downloads and adhered to the terms of contracts, we are pleased to amicably resolve this matter and avoid continued legal costs.”
– See more at: All Access News
