The estate of 1950s pop star Ricky Nelson has sued Sony Music over a common royalties gripe. Namely, the way global music companies often make deductions to income as it moves its way around their various regional subsidiaries, before calculating what the artist is due under the terms of their record contract in their home country.
Such deductions have traditionally been common in the record industry. Partly because, when it comes to physical product, releasing a record in each new territory requires additional work and extra risk for the label. And partly because in the early days of the record industry, when there were few truly global music companies, third party labels and distributors might be involved in a record's release in other countries.
Posted on: 27/09/2018Categories: News from CMU Online
