Lawsuit between Sony Music and American Idol record company continues

When it comes to the music industry, allegations of copyright infringement are a frequent occurrence. As the Internet has changed the industry landscape through the availability of digital downloads and streaming music, there is often legal debate as to whether or not infringement has occurred. 

A case between Sony Music and the record label of American Idol creator Simon Fuller, 19 Recordings, has been unfolding in which 19 Recordings claims that Sony has been stealing royalties. 

The Hollywood Reporter discussed the lawsuit back in February of this year when it was filed, explaining that a significant part of the claims by 19 Recordings have to do with licensing deals that Sony has with various streaming music services, and revenue generated from these services. 

According to a recent article from the Hollywood Reporter, there are two royalty rates that Sony can pay artists for streaming income. The lawsuit from 19 Recordings alleges that Sony has been keeping the "Idol" artists from collecting certain royalties by only paying them the lower rate. 

The lawsuit contains other claims about payments, including royalties for joint venture compilation albums that were not paid correctly—not paying money from past lawsuits—and a claim that Sony would be able to use the artist material for advertising campaigns without the approval from 19 Recordings. It goes on to list other claims as well.

Whether or not Sony will be determined to have taken advantage of the contract with 19 Recordings remains to be seen. In any case, when a work of entertainment generates significant sales, the copyright owner may have a lot to lose in an infringement case. 

Intellectual property theft can happen to anyone, regardless of industry. A Phoenix, AZ small business attorney can serve as a trusted resource for any questions you may have about how copyright law affects your business.

Categorised in: Intellectual Property Law

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