An audit prepared for former Eminen production company F.T. in preparation for their re-trial charging Universal Music Group which massive miscalculations of digital music royalties is providing the strongest indication yet of the massive payouts that major labels could be facing if the plaintiffs prevail.
The audit, disputed heavily by UMG, shows that the label owes Eminem's then production company in excess of $3.8 million. The audit, leaked to The Hollywood Reporter, only covers the period between July 1, 2005 and December 31, 2009.
Add in foreign royalties and multiply that by the thousands of artists that have been compensated for digital sales using the disputed method of calculation over the last 7 years; and the liability for record labels is in the billions.
The new trial is scheduled to begin April 4th.
Source is http://www.hypebot.com/hypebot/2012/02/eminem-universal-music-audit-reveals-mammoth-problem-for-major-labels.html
