Sony Music and ’90s Rockers Lit Settle Streaming Royalties Lawsuit
A “settlement in principle” was reached on July 7
“My Own Worst Enemy” rockers Lit have settled their lawsuit against Sony Music Entertainment over an alleged breach of contract and unpaid streaming royalties.
Backstory:
The case was brought by frontman A. Jay Popoff, guitarist Jeremy Popoff, bassist Kevin Baldes, and the estate of late drummer Allen Shellenberger.
Sony – which acquired RCA Records well after the band signed to the label in 1998 – had been paying a 14% royalty rate for the group’s streams.
The band argued their 1998 RCA contract entitled them to 50% of net receipts whenever a master is licensed, contending that on-demand streams should be treated as “master use” licenses rather than sales.
As a result, the band claimed to be owed more than $800,000 in underpaid streaming royalties.
It’s worth noting that neither streaming services nor Napster existed when the RCA contract was signed.
Lit also alleged that Sony’s formula for video streaming royalties was wrong, and that it never applied the higher rate stipulated in the band’s deal once their A Place in the Sun album achieved Gold and Platinum status.
The complaint stated that the reduced royalty reporting had lowered the band’s pension contributions and impacted their health insurance eligibility through SAG-AFTRA.
The resolution:
The band and major reached a “settlement in principle” on July 7.
The terms have not been disclosed.
A written agreement is being finalized.
US District Judge John P. Cronan shut the case on Tuesday.
👋 Disclosures & Transparency Block
This story was written with information from Digital Music News.
We covered it because it’s news of a resolution to the Lit/Sony lawsuit.
