Lit sues Sony Music for over $800k in streaming royalties

A $800K-plus royalty dispute just landed in a New York courtroom because a major label allegedly applied the wrong math to streaming payments for over two decades.

Lit takes Sony to court over royalties

• Lit filed suit against Sony Music Entertainment on March 2.
• Band members allege over $800K in underpaid streaming royalties.
• Their original RCA Records deal dates back to 1998.
• Allen Shellenberger's estate joined through a living trust.

Sony allegedly used the wrong royalty formula

• Lit's contract specifies a net-receipts calculation for streams.
• Sony reportedly paid a flat 14% rate instead.
• Video streaming royalties also got the wrong treatment.
• Escalated rates for gold and platinum sales never kicked in.

My Own Worst Enemy keeps racking up plays

• That 1999 smash has cleared 500 million Spotify streams.
• A Place in the Sun earned US platinum certification.
• Consistent touring keeps exposing new fans to their catalog.
• Ongoing streaming makes the alleged underpayment increasingly expensive.

Sony basically ghosted the band's lawyers

• Lit first flagged accounting concerns back in July 2023.
• Sony initially offered a partial defense of its position.
• Communication from Sony reportedly ceased around late April 2024.
• No coherent justification for its formula ever materialized.

Real-world fallout beyond just lost cash

• Underreported royalties allegedly shrank their pension contributions.
• SAG-AFTRA health insurance eligibility was reportedly affected.
• Lit seeks full damages and a jury trial.
• Similar legacy-artist streaming disputes keep piling up industrywide.