Digital Music News recently covered a Warner Music Group settlement worth $11.5 million, one that revolved around legacy artist payouts from digital downloads. These artists didn’t have digital downloads written into their original contracts, and many have argued that downloads sales should be treated as licenses instead of sales. The shift dramatically increases the payout, by multiples.
A website has now been set up to inform artists who are included in the settlement how to proceed:
Here’s the official notice:
If You Receive Royalties from Warner Music Group for Digital Downloads
You Could Benefit from a Class Action Settlement
A Settlement of at least $11.5 million has been reached in a class action lawsuit over how Warner Music Group Corp. (“WMG”) calculated royalties for digital downloads and mastertones of recordings.
You are included in this Settlement if you have the right to receive royalties from a contract dated before January 1, 2002 with a WMG U.S. Label that pays on a Royalty Rate Basis or a Penny Rate Basis. (see Commonly Asked Questions 5, 7 and 8 for a list of included labels and contracts).
This Settlement provides 1) cash payments based on past royalties paid and 2) an increase in digital download and ringtone royalties for artists going forward (see Commonly Asked Question “What does this Settlement provide?”).
Please review this Website carefully. Your legal rights may be affected, whether you act or don’t act.