Warner Pays $11.5M To Settle Digital Download Royalty Suit

Law360, Washington (January 2, 2014, 1:34 PM EST) -- Warner Music Group Corp. on Tuesday agreed to pay $11.5 million to end a class action alleging the music label routinely shortchanged artists on royalties for digital downloads like MP3 files and ringtones.

The settlement, subject to court approval, comes after one year of negotiations between Warner Music and a proposed class of recording artists and music producers, according to documents filed by the plaintiffs on Dec. 31.

The artists claimed that Warner Music had incorrectly classified their digital downloads as "sales" rather than as "licenses,"...
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