Lit Sue Sony 90s Label Deal: Guaranteed 50% Streaming Royalties

If you were around in the late ’90s, chances are you jammed out to Lit and their hit song “My Own Worst Enemy.” That catchy riff still gets stuck in our heads, right? It turns out that song has reached anthem status in the NHL and continues to be a streaming favorite, with over 500 million plays on Spotify alone.

Lit is taking legal action against Sony, their record label’s parent company, over unpaid streaming royalties. The lawsuit, filed by Lit’s frontman A. Jay Popoff, guitarist Jeremy Popoff, bassist Kevin Baldes, and the estate of late drummer Allen Shellenberger, claims that their 1998 contract promises them 50% of streaming royalties. This means Sony may owe them $800,000 in back payments.

While Sony currently pays Lit the standard 14% royalty rate for track streams, there is a clause in their contract that grants the band 50% of net proceeds from master use licenses. This clause proves that Lit had some impressive foresight when it comes to streaming royalties.

Back in 1998, when Lit signed their contract, streaming wasn’t even on the music industry’s radar. MP3s were just starting to gain popularity, and Napster was still a year away from launching. Despite this, Lit has been trying to claim their 50% royalty rate since 2023. Sony initially defended their current royalty rate but has since stopped responding to Lit’s inquiries.

Lit’s attorney, Chris Vlahos, asserts that Sony’s failure to properly account for streaming royalties has resulted in over $800,000 in underpaid royalties. Lit is seeking to recover this disputed amount and also claims that the reduced royalty rate has affected their contributions to SAG-AFTRA pensions and eligibility for union health insurance.

Lit’s legal battle with Sony sheds light on the complexities of the music industry and streaming royalties. It’s a reminder that artists need to stay vigilant to ensure they are fairly compensated for their work.