Tag Archives: Toto

Toto Can’t “Hold the Line”: Sony Prevails in Digital Royalty Dispute with Classic Rockers

Toto, Inc. v. Sony Music Entertainment, No. 12-cv-1434 (RJS) (S.D.N.Y. 2014)

A New York federal judge recently ruled in favor of Sony Music Entertainment (“SME”) in the latest dispute over the proper characterization of artist royalties on digital music sales, dismissing a breach of contract claim brought by rock group Toto (best known for the hits “Africa” and “Rosanna”). Ever since the Ninth Circuit’s 2010 decision in favor of Eminem’s former production company in FBT Productions LLC v. Aftermath Records, artists such as Toto – whose recording contracts predated digital music sales – have taken to the courts arguing that they were underpaid on digital record royalties. Toto’s claims, like FBT’s and many other plaintiffs’ claims, focus on whether, under recording contracts, digital purchases are “sales” as opposed to higher-paying “licenses” or “leases.” Continue reading