Sony Music Shorts Artists On Foreign Royalties, Suit Says
Law360 (September 26, 2018, 8:30 PM EDT) -- The estate of 1950s pop star Ricky Nelson hit Sony Music Entertainment with a proposed class action in New York federal court, accusing the music giant of applying a hefty "intercompany charge" on international streaming revenue before it calculates an artist's royalty rate.
The suit, which seeks to also represent "hundreds, if not thousands" of the record label's artists who have been similarly treated, alleges their compensation agreements don't allow for the charge connected to foreign affiliates that are wholly owned or controlled subsidiaries of Sony Music.
"Despite this fact, defendant did, and continues to, assess an intercompany charge for international...
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