In a legal saga that has been closely followed, 90s hip-hop duo Black Sheep recently found themselves at odds with Universal Music Group (UMG) over the label’s business dealings with Spotify. The duo had initiated a class-action lawsuit against UMG earlier this year, claiming that the record label owed a staggering sum of over $750 million in unpaid royalties to numerous artists. However, the latest update reveals that this legal battle has now come to an unexpected conclusion, as court documents, recently examined by Newsound, confirm the dismissal of Black Sheep’s lawsuit.
At the heart of Black Sheep’s legal action was the assertion that UMG had engaged in an undisclosed and allegedly advantageous agreement with Spotify, one that the duo believed ran afoul of their original 1990 contract with Universal’s subsidiary, Polygram. According to their interpretation of the contract, UMG was obligated to remit 50 percent of all net proceeds derived from the “use or exploration” of their music. Furthermore, Black Sheep contended that the class affected by their lawsuit could potentially encompass “thousands of artists.”
However, United States District Judge Jennifer Rochon has now rendered her verdict, determining that Black Sheep had surpassed the statute of limitations, effectively rendering their lawsuit time-barred. Additionally, Judge Rochon dismissed the rappers’ argument that UMG had breached their contractual obligations. As a result, their request to amend their case was denied, leading to the closure of the lawsuit. It is worth noting that UMG has chosen not to provide any comments on the matter, while Newsound is actively seeking a response from Black Sheep’s legal representatives to gain further insight into their perspective.
This legal battle has certainly left a significant mark in the world of music and royalties, with implications that extend beyond the two parties involved. While Black Sheep’s lawsuit has met an untimely end, the issues surrounding artist royalties, streaming platforms, and record label dealings continue to be subjects of great importance and scrutiny in the ever-evolving landscape of the music industry.
Frequently Asked Questions (FAQs) about Royalties Dispute
What was Black Sheep’s lawsuit against Universal Music Group (UMG) about?
Black Sheep’s lawsuit against UMG revolved around a dispute regarding royalties and UMG’s business dealings with Spotify. They claimed that UMG owed more than $750 million in royalties to various artists, including themselves.
What was the basis of Black Sheep’s legal argument?
Black Sheep contended that UMG had entered into a secretive and favorable agreement with Spotify, which they believed violated their 1990 contract with Universal’s subsidiary, Polygram. According to their contract, UMG was obligated to pay 50 percent of all net receipts related to the “use or exploration” of their music.
What was the outcome of the lawsuit?
The lawsuit filed by Black Sheep was dismissed by United States District Judge Jennifer Rochon. She ruled that the duo had exceeded the statute of limitations, rendering their lawsuit time-barred. Additionally, she rejected their argument that UMG had breached their contractual obligations. Their request to amend the case was also denied, leading to the closure of the lawsuit.
How did UMG respond to the dismissal of the lawsuit?
UMG chose not to provide any comments regarding the dismissal of the lawsuit.
What are the broader implications of this legal battle?
While Black Sheep’s lawsuit has come to an end, it sheds light on ongoing issues within the music industry, particularly concerning artist royalties, streaming platforms, and record label agreements. The case highlights the complexities and challenges artists face in asserting their rights in an ever-evolving industry.
More about Royalties Dispute
- Black Sheep – Learn more about the 90s hip-hop duo.
- Universal Music Group (UMG) – Visit the official website of UMG to explore their activities and artists.
- Spotify – Discover more about the popular music streaming platform.
- Polygram – Find information about Polygram, the subsidiary of Universal involved in the lawsuit.
- United States District Court – Locate and learn about the United States District Court system where the lawsuit took place.
