Michael McDonald Sues over Online Music Sales

By Pluginin
Source: The Tennessean

Michael McDonald Sues Over Online Music Sales

Singer-songwriter Michael McDonald, best known for solo hits like “I Keep Forgettin’ (Every Time You’re Near),” and “What a Fool Believes” recorded while a member of The Doobie Brothers, has filed suit against Warner Music Group, claiming the company underpaid him for online music sales.

McDonald, who lives in Franklin, filed suit in the U.S. District Court in Nashville this morning.

He is seeking at least half a million dollars in royalties he claims were deliberately underpaid for sales of his music through download sites such as iTunes and through cellphone ringtone sales.

McDonald’s lawsuit is the latest in a growing list of breach of contract suits brought by artists against the nation’s major record labels over accounting and payment practices for music sold and streamed online.

Since December, country singer Kenny Rogers, rocker Peter Frampton, Weird Al Yankovic, members of the 1980s rock band Toto and an heir to the drummer for 1970s-era rock band The Knack (they’re known for “My Sharona”) have all filed suit on similar grounds.

The lawsuits generally claim that record labels have kept the lion’s share of digital music sales instead of fairly dividing them with the artists.

The musicians are all represented by Nashville attorney Richard Busch, partner in the King & Ballow law firm.

Last year, Busch filed suit successfully over royalties for rapper Eminem and his producers, F.B.T. productions. That suit withstood multiple appeals by record label Universal Music Group and is due to return to a Los Angeles courtroom this summer to determine monetary damages owed to the singer and his producers.

The underpayments to McDonald were “part of a conscious decision by Warner, and others in the music business to deprive artists of their proper royalties…,” McDonald’s lawsuit contends.

Citigroup Sold EMI For 4.1 Billion.

By Pluginin

Citigroup has picked a pair of winners.

On the recording side, Universal Music Group owner Vivendi has agreed to purchase EMI for $1.9 billion (1.2 billion pounds).  That is a substantial premium over the estimated price tag of between $1.2 and $1.5 billion, and enough to outdo Warner Music Group owner Access Industries.

On the publishing side, the buyer will be Sony/ATV, with a somewhat-similar price tag of $2.2 billion.  That brings the total to $4.1 billion, considered far loftier than earlier estimations and potentially the result of some great salesmanship.

The information is now being reported by most major outlets, including the Wall Street Journal, New York Times, Guardian, and others.  Citigroup, which seized EMI Group and is executing the sale, is expected to also announce the sale of both units later today.  These deals look fairly cooked, barring some late-stage development.

Universal Music Group is the largest of the majors, and the absorption of EMI’s recording collection only makes it bigger.  The question now is whether regulators take notice, and indie consortium Impala has already announced its intentions to fight the combination.  The situation in the US seems far friendlier, and will probably involve a light review at most.

 

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Is Pandora Hurting The Industry?

Rob Wells, President of Global Digital Business at Universal Music Group joins Ian Rogers in the studio to talk about UMG’s gobal initiatives in the digital music space. The conversation includes streaming services, the difficulties various international music markets present, what entrepreneurs should know when approaching and doing business with UMG or their like, and finally, what new services and music Rob loves right now! Lots of great discussion in this episode.

 

What do you think about the Rob Wells interview?  Please rate this artist.

 

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