Court denies request for rehearing over Eminem's online royalties
By BRIAN McCOLLUM
Free Press Pop Music Writer
In a victory for Eminem and his local associates, a federal court has denied a petition for rehearing in a high-profile case involving the rapper’s online royalties.
After ruling last month against Universal Music Group — and in favor of Eminem’s production company — the U.S. 9th Circuit Court of Appeals today denied Universal’s petition for a rehearing.
Universal’s only remaining legal route would be an appeal to the U.S. Supreme Court. Universal could not be immediately reached for comment.
Today’s decision is the latest development in a suit filed by Ferndale’s F.B.T. Productions, which shares Eminem’s record contract with Universal. The suit claims that Universal owes a 50% licensing rate for Eminem tracks sold through services such as iTunes, rather than the 18% royalty rate it has been paying in line with physical sales.
Since the initial ruling from the appeals court last month, some experts have said the decision could have major ramifications for the music industry, as labels move to renegotiate artist deals made prior to the downloading era.
In an interview this week with Digital Music News, a former Sony Music attorney said the effects for labels could be enormous.
“The Eminem case is going to have a profound effect on the music business in terms of getting more money from the record companies into the pockets of the artists,” said Steve Gordon, speaking to a reporter at New York’s CMJ industry gathering.
For a full story about the court’s ruling last month, go to www.freep.com/article/20100903/ENT04/110210001.
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