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Sony BMG

Sony BMG Sued Over Artists' Digital Rates


By: Spacelab Research Staff
You have to feel sorry for Sony these days. It seems like every week a new story pops up about them being a selfish, sneaky, unfair, unlawful company. And then you realize that all of this has been proven to be true, and you can't feel sorry for them anymore!

The bulking boheometh of the music world has been busted repeatedly this year for payola and spyware. Now there are new allegations of not paying their artists fully on the sales of digital downloads, like the ones purchased through Apple's iTunes music store.

The Allman Brothers Band and Cheap Trick have enlisted law firm Labaton Sucharow & Rudoff and Probstein & Weiner to file a class action suit against Sony Music for not paying the artists the full amount due to them from the sales of digital downloads. At hand here is the way Sony has tracked the downloads in bookeeping and how that applies to royalties due to the bands. If the bands prove to be correct in how they should be paid, a lot more money is due to them than what they have received.

The other issue at hand here is that the verdict in this case may open a floodgate of activity on how recording labels pay artists for downloads. "I'm surprised that similar actions haven't already been commenced against the other record labels," representing attorney Brian Caplan said to Billboard.

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