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Message: [QUOTE="Queen, post: 87889, member: 27"] 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 [LIST] [*]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. [/LIST] Sony allegedly used the wrong royalty formula [LIST] [*]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. [/LIST] My Own Worst Enemy keeps racking up plays [LIST] [*]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. [/LIST] Sony basically ghosted the band's lawyers [LIST] [*]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. [/LIST] Real-world fallout beyond just lost cash [LIST] [*]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. [/LIST] [/QUOTE]

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