‘American Idol’ Lawsuit Claims Sony Stiffs Carrie Underwood, Kelly Clarkson
Sony is among the larger music entities that has forged licensing deals with streaming services run by Spotify, Google and Apple.
But the lawsuit says that Sony is accounting for the exploitation of master recordings here as “sales” or “distributions” rather than as “broadcasts” or “transmissions.” The distinction might sound like semantics, but it is nevertheless important. By treating streaming music as sales, Sony is essentially saying that such deliveries are no different than downloads purchased on Apple or Amazon. And with that, Sony would be forking over significantly less money under the terms of the company’s recording agreements — the difference between a 50 percent royalty share for a “transmission/broadcast” versus a fraction of that for a “sale/distribution.” The plaintiff says the discrepancy has resulted in at least $3 million in damages.
“Such exploitation can only be fairly described as ‘transmissions’ or ‘broadcasts,’ and, upon information and belief, are so described in the licenses or other agreements between Sony and the streaming services,” says the lawsuit. “However, Sony has nevertheless accounted to 19 for all streaming income received at the lower Album rate as if the exploitation between the streaming service and the end user was described as a ‘distribution’ or ‘sale’ and, by so doing, Sony has breached the Recording Agreements.”
More: Bombshell ‘American Idol’ Lawsuit Claims Sony Stiffs Carrie Underwood, Kelly Clarkson (Exclusive)