Apple, Google Licenses in Holding Pattern as Labels, Publishers Battle Over Revenue Shares, Sources Say

In Publishing by FASHIONENTLAW™

No Gravatar reports,

“One of the issues behind Google’s decision to launch its Music Beta Cloud service without the necessary licenses has also been felt in negotiations between the majors and Apple over the latter’s forthcoming cloud offering, sources told Billboard.

The Google negotiations derailed for a number of reasons, sources said, but one of them occurred when Universal Music Group and Sony Music Entertainment demanded a higher cut of the locker revenue than the business model proposed by the search engine could accommodate.

Google was willing to give the music-rights holders 70% of the revenue derived from its cloud service, with it retaining 30%, sources told Billboard. But Google had agreed to pay music publishers a 12% all-in portion of the revenues for performance, mechanical and ephemeral licenses, which means that the master rights owner of the recorded music side of the majors would get 58% of the revenue. Meanwhile, sources said that Google proposed to pay independents less than majors, initially offering the indie record label sector a 53% slice of the revenue. Some indie executives said Google may have started with that offer, but they are fighting for a larger cut. (Reps for Google declined to comment on the situation.)

But depending on how you look at it, the Universal and Sony demands on the split could be seen as a way to pry 2% of the Google cloud revenue from the music-publishing side of the business — or were the two majors trying to take that 2% revenue cut out of Google’s share? From the publishers’ point of view, the labels are being greedy at their expense. . .” has the full story


WHAT IS Fashionentlaw™: It is a law blog discussing hot topics in pop culture that arise primarily out of the fashion industry and intersects/ collides with the law. WHAT I DO: My name is Uduak Oduok and I am a California licensed attorney who helps creatives and business owners sleep better at night by protecting their creativity and reputation, securing their rights, and helping them with the monetization of their intellectual assets. WHO I WORK WITH: I have counseled a range of clients from musicians, models, actors, actresses, and designers, to diverse business owners in numerous areas of the law including contracts, business law, fashion and entertainment law, copyright, trademark, and intellectual property law. I bring over two decades of first-hand knowledge and experiences that are as diverse as they are deep in the fashion and entertainment industries (modeling, retail, production, public relations, journalism, and publishing). I am an attorney who “gets it” when it comes to resolving legal issues for the fashion and entertainment industries. INTERESTED IN TALKING TO ME ABOUT LEGAL REPRESENTATION? To arrange a consultation to discuss your case, contact me today at 916-361-6506 or email me directly at ( Full bio: Ms. Uduak Bio/ Twitter @uduaklaw

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