Public Enemy's Chuck D sues UMG

BY CHRISTOPHER MORRIS Rap act Public Enemy's frontman Chuck D has added his name to a chorus of Universal Music Group artists who have sued the company for underpayment of digital royalties. In a related matter, a federal judge has denied UMG's motion to dismiss the earlier actions filed by Rob Zombie and Rick James' estate. Chuck D (real name Carlton Douglas Ridenhour) filed his own class action against UMG in U.S. District Court in Northern California on Wednesday. The action alleges "UMG's accounting practiceshave allowed UMG to illegally withhold a substantial amount of money it receives from digital content providers" for the sale of digital downloads and master ringtones. According to the action, UMG acquired rights to Public Enemy's 1987-98 recordings when it acquired Def Jam, the rap act's label, in 1998. The suit claims "UMG is paying plaintiff and other class members roughly 25% of the royalties that it should be paying them for moneys received from music download providers." It alleges that on 1,000 digital singles downloaded at 99 cents apiece, artists are entitled to $315.85, versus $80.33 owed according to UMG's calculations. For 1,000 ringtones sold at $3 apiece, the suit claims artists are owed $660, versus $49.89 owed according to UMG's methodology. Chuck D's action cites last year's appellate court decision in F.B.T. Productions' suit against UMG and Aftermath Records, which found that F.B.T., which produced Eminem's earliest recordings, was entitled to higher digital royalties based on rates for masters licensed to third parties (Daily Variety, Sept. 7, 2010). That decision also inspired class actions filed in federal court in Northern California earlier this year by the James estate (Daily Variety, April 5) and Zombie, his band White Zombie, Whitesnake and Dave Mason (Daily Variety, May 24). On Monday, U.S. District Court Judge Susan Illston denied UMG's motion to dismiss the case based on a reading of Zombie's and James' contracts specifying the proper venue for legal action. Illston also denied UMG's motion to transfer the case from the court's Northern District to its Central District. Chuck D's action now brings the number of pending royalties cases against UMG to three. James Pizzirusso, an attorney at Hausfeld LLP in Washington, D.C., which is representing the rapper, told Daily Variety, "I can see the cases will eventually be consolidated." Contact the Variety newsroom at news@variety.com