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Legal
Hip hop label sues Warner
By CMU Editorial | Published on Tuesday 3 May 2011
Miami-based hip hop label DM Records, which boasts some Tupac, MC Breed and Prince tracks in its catalogue, is suing Warner Music in a dispute over digital distribution rights.
In a slightly confusing case, DM seems to be accusing Warner of failing to pay it all the royalties it is due, of failing to report on the sales it has facilitated, and of re-licensing the label’s digital catalogue to The Orchard on an exclusive basis, when the major label didn’t have the rights to enter into any such deal.
According to Allhiphop.com, DM began working with Warner when the latter acquired Ryko, the former independent music company which had provided the hip hop label with distribution services. DM renewed its deal with the now Warner owned distributor, but says that with regards digital it did so on a non-exclusive basis.
It’s not clear how long DM is alleging that Warner has been failing to pass on the digital royalties it is due, though the other complaints are thought to be relatively recent. According to Allhiphop.com, DM filed its lawsuit against Warner early last week.
