Anne Bucher  |  April 24, 2014

Category: Closed Class Actions

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This settlement is closed!

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Warner Music Group

Warner Music Group Corp. has agreed to pay $11.5 million to settle a class action lawsuit that alleged the company failed to properly credit royalty payments to Class Members from the exploitation of digital downloads and mastertones of recordings under certain contracts.

Who’s Eligible

If you are able to answer “Yes” to the following questions, you may be considered a Class Member of the Warner Music royalties settlement:

  • Do you have a contract with a Warner Music Group U.S. label (see below for list) dated before Jan. 1, 2002, or are you the heir, successor or assign of someone who does?
  • Are royalties in the contract currently paid or credited by a Warner Music Group U.S. label?
  • Does your contract pay royalties for the exploitation of recordings on a Royalty Rate Basis or a Penny Rate Basis (see below for definitions)?

If you have already released Warner Music Group for claims relating to payment of royalties on downloads or mastertones through Dec. 31, 2012 from a past audit or litigation, you are not eligible to participate as a Class Member of the Warner Music royalties settlement.

As defined by the class action settlement, “Royalty Rate Basis” means a calculation based on a percentage of the actual or adjusted suggested retail list price, published price to dealer, or wholesale price. “Penny Rate Basis” means a calculation based on a specific cent rate per unit.

Warner Music Group U.S. labels include:

  • Atlantic Recording Corporation
  • Bad Boy Records LLC
  • Electra Entertainment Group Inc.
  • Fueled by Ramen LLC
  • Nonesuch Records Inc.
  • Rhino Entertainment Company
  • Warner Bros. Records Inc.
  • Word Entertainment LLC
Potential Award

The Warner digital download class action settlement creates an $11.5 million Settlement Fund that will provide payments to eligible Class Members who file valid claims for past exploitations of downloads and mastertones from Jan. 1, 2009 through Dec. 31, 2012. It also provides for an increase in the royalty rate for Class Members for future exploitations after Jan. 1, 2013.

For detailed information about the class action settlement benefits, please visit the Warner Music digital download settlement website.

Proof of Purchase

N/A

Claim Form Deadline

5/31/2014

Case Name

In re: Warner Music Group Corp. Digital Downloads Litigation, Case No. 3:12-cv-0059-RS, in the U.S. District Court for the District of California

Case Summary

The class action lawsuit alleges that Warner Music Group failed to provide proper royalty payments to Class Members from digital downloads and mastertones. The plaintiffs alleged that the exploitation of digital downloads and mastertones should be considered a “license” instead of a “sale.” Warner Music Group denies the allegations but agreed to settle the class action lawsuit to avoid the cost and risk of trial.

Final Hearing

10/2/2014

Settlement Website

www.WMGDownloadSettlement.com

Claims Administrator

WMG Download Class Settlement Administrator
P.O. Box 8094
Faribault, MN 55021-9494
1-877-690-7098
info@wmgdownloadsettlement.com

Class Counsel

PEARSON SIMON & WARSHAW LLP
HAUSFELD LLP
KIESEL LAW LLP
LIEFF CABRASER HEIMANN & BERNSETIN LLP
PHILLIPS ERLEWINE & GIVEN LLP

Defense Counsel

MUNGER TOLLES & OLSON LLP

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.