Eminem to Receive Digital Royalties

It’s a decision that could change the way musicians are compensated for their work. The Wrap reports rapper Eminem was granted royalties from Universal Music Group (UMG) for iTunes and ringtone sales by the U.S. Court of Appeals. This verdict, which was delivered on Friday, overturned a previous ruling in favor of UMG. Now the 37-year-old “Not Afraid” lyricist and his producers with his former production company, F.B.T Productions LLC, will get a 50-50 split from digital sales.

The decision read as follows:
“On appeal, F.B.T. reasserts that the Masters Licensed provision unambiguously applies to permanent downloads and master-tones. We agree that the contracts are unambiguous and that the district court should have granted summary judgment to F.B.T. We therefore reverse the judgment and vacate the district court’s order awarding Aftermath its attorneys’ fees.”

UMG has already stated that they plan to file for a new hearing. The issue is over the “master license provision.” The record label believes that a downloaded song is a record sold while FBT says it should be considered a license on a master recording to a third party. Prior to the latest ruling, UMG was receiving more than 80 percent of Eminem’s profits.

UMG spokesperson Peter Lofrumento made sure to mention to The Wrap that the result of the case will not affect future business dealings. He said, “In the meantime, it should be noted that this ruling sets no legal precedent as it only concerns the language of one specific recording agreement. Any assertion to the contrary is simply not true."