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Sony Gets Sued Over Digital Royalties, Plans New Assault on iPod
Thursday, April 27th, 2006 at 3:00 PM - by Brad Cook
Sony this week was hit with a class action lawsuit over digital music downloads that several artists say have been underpaid. A senior executive with the company also said on Thursday that it plans a renewed assault on the iPod with a new MP3 player, as well as a download service and software.
The class action lawsuit was initiated by the Allman Brothers Band and Cheap Trick, according to Macworld UK. The bands accuse Sony Music of not paying the full royalties due to them through the sale of their music at the iTunes Music Store and other online sites. They say that the company has skirted around its contract by treating digital downloads the same as physical CD sales, which means they're deducting a flat rate for broken product and packaging charges.
The bands are looking for millions of dollars in damages.
Meanwhile, Sony Music's parent company is readying a new MP3 player that will be sold worldwide sometime during its next fiscal year, which ends in March 2007. A Macworld UK story said that Sony senior vice-president Takao Yuhara told Tokyo reporters that the company will also debut a download service and software.
Sony said that it sold 4.5 million MP3 players during its recently-ended fiscal year and expects to ship 5.5 million during the current year. Apple sold more than 22 million iPods during the past two fiscal quarters alone, in comparison.
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