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Toto Sue Sony

Wednesday, February 29th 2012 12:45

The band file a lawsuit against their label

Rolling Stone reports that lawyers representing the group have filed a lawsuit in the U.S. District Court for Southern New York alleging that Sony has failed to account for and pay 50 percent of net receipts from licensing the band's music to third parties selling downloads of their work.

The dispute is based upon the idea that digital sales essentially fall under a licensing agreement rather than a royalty agreement, which is where CDs fall. In licensing music the artist is entitled to 50% of the receipt, whereas royalties are worth around 12-20%.

Toto's lawsuit also charges that Sony breached their contract in neglecting to pay out these royalties. The band is seeking compensatory damages in excess of $605,000 plus interest, as well as full accounting and legal fees.

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