Counting Crows is the latest band to sue their record label over digital downloads.
They’ve filed a lawsuit against Universal Music Group in LA Superior Court, saying:
“Through this lawsuit, Counting Crows seeks to compel Defendant to account to and pay the rightful share of licensing income paid to Defendant for downloads and ringtones of the recorded music licensed by Defendant to these entities.”
Counting Crows claims that songs sold in digital download stores should be classified as a “license” rather than a “sale”, since the track is basically being licensed to the online retailer. A license might bring a royalty in the range of 50 percent royalty for the artist, whereas a sale could bring in around 15 percent.
Many of these cases have reached a settlement, which has allowed labels to avoid a massive court precedent…