You can expect more and more news stories like this one, thanks to Eminem: The Temptations have filed a class action lawsuit against their label, Universal Music Group, over their digital royalties, saying that they are entitled to half of the receipts from the sale of their music on digital retailers. This isn't entirely controversial--a judge ruled exactly this in Eminem's case.
But The Temptations are taking it a step further: They filed a class action lawsuit, which allows Universal groups like Guns N Roses, James Brown, Eric Clapton, the Police, the Who, Nirvana and many more who have contracts that don't mention royalty rates for digital licenses. This lawsuit is likely to result in millions of dollars in payouts, as Universal has been paying these artists only around 10 percent of the total money made from digital sales, while they are actually entitled to 50 percent. Expect Universal to try to settle this ASAP. It's bad business to have your artists teaming up to sue you. [RS]
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