theblue1 13th August 2015 03:40 PM
The suit will attempt to pry open 'the Black Box' ... at least a little:
Under an agreement initiated in 1994 and renewed and amended most recently in 2012, major labels Universal Music Group, Warner Music Group and Sony Music Entertainment, along with film soundtrack powerhouse Hollywood Records, are required to pay 0.5 percent of “all receipts” that the labels have collected “’as a result of the amendment of the Copyright Act of 1976 to provide copyright owners with the exclusive right, not limited by statutory or compulsory licensing, to publicly perform sound recordings by means of a digital transmission’” into the AFM’s pension fund.
In layman’s terms, those receipts, which include revenue generated from streams, nonpermanent downloads and ringback tones (remember those?), may also include the advances the majors wrung out of services like Spotify in exchange for access to their catalogs. Those advances, whose specific amounts are mostly hidden behind nondisclosure agreements, are widely believed to amount to tens of millions of dollars per label.