PETER FRAMPTON Sues A&M Records Over Digital Royalties
December 28, 2011, 3 years ago
Billboard.com has issued the following report from Glenn People:
PETER FRAMPTON has sued Universal Music Group-owned A&M; Records for unpaid digital royalties, according to numerous reports. The suit alleges breach of contract and unfair competition and seeks compensatory damages.
At the center of the lawsuit is the way royalties are calculated for digital goods. Frampton's complaint argues Universal should have paid 50 percent of net receipts, which is typical when music is licensed. But record labels tend to treat digital sales like physical sales, which have a much lower royalty rate.
Read more at Billboard.com.