THE BUZZ: British multinational music group EMI has filed a lawsuit against 4mm Games and Terminal Reality over unpaid Def Jam Rapstar royalties.
EMI is claiming damages from the theft of several songs from artists including Kanye West, DMX and Lil Wayne. Apparently the company has tried to contact the opposing parties several times about royalties, but have been ignored, and executives at 4mm have been unreachable.
The label is claiming damages against 54 songs that they have part ownership of, demanding $150,000 in statutory damages for each track to a total of $8 million.
EGM’s TAKE: How can you develop a music game and not secure the proper licensing for each track used, and then follow though with the terms of the contract? It seems like one of the first things they should have done. It appears that 4mm and Terminal Reality may have been trying to maximize profits by avoiding royalty payments. Not a clever move if the company you’re stealing from finds out. EMI appears to have a pretty solid case by the looks of things.
Source: Hollywood Reporter