Main Content
Music Licensing Main Case
Main Case: F.B.T vs AftermathPlantiff: F.B.T = Eminem’s production company Defendant: Aftermath = subset of Universal records that was given the right to Eminem’s music The case has to do with ringtones and iTunes, which were previously not covered in many contracts created in the early 2000's simply because they did not exist. The main issue involved in the lawsuit was the definition of what was considered “records sold” and what was “music licensed”. Aftermath argued that since there was at least the act of buying/downloading the music and paying a set rate, that it would be considered part of the "records sold" definition. F.B.T countered and stated that since the digital version of the songs were sent to a third party distributor (iTunes) and included the licensing of a master. They also argued that Aftermath did not have to through the typical paths of distribution due to not having to pay for manufacturing and distributing of hard copy records. Becuase of these differences, F.B.T. stated that digital downloads should be paid as "music licensed". For reference:“records sold” = 15-20% of records sold“Music Licensed” = 50% per licensedDistrict Court Ruling: no industry custom beforehand, said Aftermath did not need to pay license fee: awarded them $2.4 million in legal feesAppeal: US Courts of Appeals the Ninth Circut relooked at the case and decided that since purchases of music on iTunes and ringtones are not actually records and the transaction between Aftermath and iTunes was a license and not a sale. F.B.T., and other contracts based on the same legality as Eminem's, would earn the 50% of licensed music. Source:http://www.law360.com/articles/201833/case-study-fbt-v-aftermath (primary)(Audio Visual Material) "Lose Yourself" by Eminemhttps://www.youtube.com/watch?v=_Yhyp-_hX2s
This book, and all H2O books, are Creative Commons licensed for sharing and re-use with the exception of certain excerpts. Any excerpts from the Restatements of the Law, Principles of the Law, and the Model Penal Code are copyright by The American Law Institute. Excerpts are reproduced with permission, not as part of a Creative Commons license.