In the early days of iTunes
In the early days of iTunes, Universal Music Group used to deduct artists’ iTunes royalties, claiming costs for “packaging” and “breakage” on digital downloads, until Eminem sued them.
Numerous singers who had not foreseen the boom in digital music sales were cheated of their digital royalties by music companies until Eminem through FBT Productions sued the music giant Universal music for the unpaid digital royalties. The lawsuit happened when FBT Production realized that Universal Music was claiming digital downloads as the “distribution arrangement”, which have lower royalty rates, whereas digital downloads should rightfully come under the “license” arrangement as the music company was not doing any packaging that would cause breakage in the downloads.
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