Counting Crows sue Universal over download royalties

Counting Crows have filed a lawsuit against Universal Music Group over digital royalties and become the latest band to claim that download revenues should be paid on a licensing basis rather than a simple sales one. Under a licensing agreement, bands like Counting Crows would typically earn a 50% share of revenues rather than the 15% then earn when a track is simply ‘sold’.

Counting Crows join a growing list of acts taking legal action against major labels over this very issue.

Sister Sledge sued Warner Music in February 2012 and sits alongside names like Kenny Rogers, Chuck D, Peter Frampton and Rob Zombie who have all made similar claims against their labels.

The most famous case surrounding this issue, however, dated back to 2009 and centred around Eminem and his production group FBT.

The parties took Universal to court, similarly arguing that download revenues should be paid on a licenses basis rather than a sales one.

Universal ended up settling out of court with Eminem in November 2012.

The contention comes because the recording contract of many more established artists such as the above pre-date the download/iTunes boom and therefore their terms do not account for such a model.

Those arguing for digital downloads to be paid for on a licensing basis do so because the lower sales royalty was put in place with the various costs of distribution and returns in mind for physical product, but such factors don’t apply to downloads.

Source: NME/Billboard