Just after news broke that American Idol might actually lose money this season comes a story that some of the show’s alums are being cheated out of what’s rightfully theirs. According to The Hollywood Reporter, there is one doozie of a lawsuit brewing, as parent company 19 Recordings sues Sony. 19 and those repped by 19 claim they are being deliberately cheated out of digital royalties.
THR specifies that since 19 represents like Kelly Clarkson, Carrie Underwood, Clay Aiken, and Chris Daughtry, the suit, by extension involves those highly success Idol alums. The lawsuit seeks $10 million in damages for what THR refers to as “the alleged underpayment of streaming royalties.”
There is a lot of legal mumbo jumbo involved but what it boils down to is a matter of the terminology used by Sony when streaming from services like Google, Spotify, and Apple. The lawsuit claims there is an “exploitation” of master recordings that are logged as “sales” or “distribution” as opposed to “broadcasts” and “transmissions.”
“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 under user was described as a ‘distribution’ or ‘sale’ and, by doing so, Sony has breached the Recording Agreements,” reads the lawsuit.
Interestingly, 19 claims Sony knowingly mislabels the type of downloads in order to pay out less money on the recordings.
“We did not want to have to file this lawsuit, but Sony left us no choice, so this became necessary to protect our artists,” explained 19 Entertainment Worldwide head of music Jason Morey.
Eek! If those allegations prove true, that’s quite a black mark on the reputation of the music giant. Do you believe it? Weigh in below!
Source: The Hollywood Reporter