Allmans, Cheap Trick sue Sony

“The class-action lawsuit claims that the artists’ contracts require Sony to pay its artists about 30 cents out of every 70 cents it gets for digital downloads–out of a total of 99 cents that iTunes charges per song. But the complaint maintains that Sony is only paying artists 4.5 cents for each song.

The case hinges on whether a digital download is comparable to a sale of a CD, as the labels contend, or more on par with a license of a song for use on a movie soundtrack, for example, as the artists claim.”

mp3.com via Juha