Saturday, February 25, 2012

Universal charge Eminem the costs of trying to rip him off

There's a strange little detail in the audit of monies owed to Eminem by Universal.

The label had been to court for a tussle over iTunes royalties - Universal said they should be at the lower rate for sales; Eminem felt they were licences and should be charged at a higher rate.

Eminem won; hence Universal having to work out how much they owed. Techdirt's Mike Masnick spotted the sting:

However, the most insane thing here may be the line at the bottom, in which it appears that Universal held back $2 million in a "legal hold." Gardner notes that this is money held back to pay for this very lawsuit.
Obviously, it's not ethical - it's a record label, you wouldn't expect them to behave ethically - but can that even be legal?