DIGITAL DOWNLOADS - A "LICENSE" OR A "SALE".

This seemingly innocous distinction has the potential to cost the record companies literally millions of dollars.  The issue concerns the computation and payment of royalties for music downloads. See "Suit Hints at a Bigger Payday for Older Artists", Sisario, Ben, NY Times, 3/28/2011, Pg. B-1).

The article uses Eminem as an example.  Under his recording agreement, If a "download" is considered a "license" the royalty to Eminem is 50%; if it is a "sale", the royalty is only 12%.

Obviously, the difference between the two rates can result in millions of dollars being owed to Eminem and other artists.

This will be a case to monitor and I will give you updates as I receive them.