Record labels have taken a lot of heat for being slow learners when it comes to profiting from internet-era trends like downloads of mobile ringtones, but they haven’t been shy in one area: copyright litigation against online purveyors of their artists’ music. Musicians, meanwhile, have targeted the labels for allegedly stiffing them on royalties when customers pay for their music online.
UMG Recordings has been smack in the middle of both trends. In 2008, UMG joined more than dozen other labels in a copyright infringement suit against the ringtone download site Myxer, which allegedly allowed users to download clips of more than 700 copyrighted songs. Meanwhile, as has been reported, in September 2010 the 9th U.S. Circuit Court of Appeals ruled against UMG in Eminem’s landmark licensing fee suit, finding that royalty contracts predating the online music era extend to digital downloads.
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