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The remaining members of Irish rock group The Cranberries are suing their longtime label with accusations of withheld royalties.
The Cranberries have filed a lawsuit in Manhattan federal court, alleging their label, Island Records, and its parent company, Universal Music Group, have withheld a small fortune in digital streaming revenue from the group.
The Irish group formed in 1991 and signed with Island Records just two years later, releasing their debut album in 1993. Their second album saw even more success than the first, thanks to its smash hit single, “Zombie,” which turned the Cranberries into a household name.
But the group disbanded after singer Dolores O’Riordan drowned in a bathtub in 2018, posthumously releasing their final album the next year. In 2020, the music video for “Zombie” became the first by an Irish music act to surpass one billion views on YouTube.
According to the band’s lawsuit, an audit report in 2021 by accounting firm Prager Metis found Island Records handing out lower royalty payments from Spotify streams overseas than those coming from the United States.
Further investigation revealed that Island Records was paying the band royalties from foreign streams “based upon 60 percent of the revenue received by Island Records’ foreign distributors.” Those fees “are intended to cover the costs of marketing, promotion, and distribution of master recordings” in foreign territories.
But this arrangement is a holdover from a bygone era. Today, it’s online streaming platforms handle marketing, promotion, and distribution — not record labels. Spotify’s cut for providing those services is, according to the complaint, a firm 30%. Therefore, the 40% arrangement with Island Records is “excessive” in the streaming era, enabling the label to “passively collect income from digital service providers.”
The filing asserts that a fee of 10% would be a reasonable sum. But upon viewing the audit report as commissioned by the band, Island “rejected [the] contention that it had under-reported royalties.”
The Cranberries also claim they’ve been underpaid for their video streams, receiving just a fraction of that which they claim they are entitled after YouTube’s 40% cut. According to the complaint, the band should be entitled to $4.9 million in video streaming royalties — but have only received $930,676. This, they say, is again the result of Island Records “significantly underreport[ing]” its video streaming revenue.
For the first claim, the band is seeking at least $1.5 million, and a minimum of $3.7 million on the second claim, for a total of $5.2 million, as well as pre-judgement interest and court costs. Notably, the Cranberries also sued UMG back in 2000 and 2003 over royalties they said they were owed, but later withdrew both claims. Their new filing accuses the company of breach of contract and breach of implied covenant of good faith and fair dealing.
Content shared from www.digitalmusicnews.com.