The Cranberries, the iconic Irish rock band, has filed a lawsuit against Island Records and Universal Music Group (UMG) in Manhattan federal court, claiming millions in unpaid digital streaming royalties.

Photo Credit: Poudou99 / CC by 3.0

The dispute centers on two main issues discovered during a 2021 audit by Prager Metis:

1. Foreign Streaming Royalties: Island Records currently pays the band based on 60% of revenue received from foreign distributors. The band argues this 40% fee is excessive in the modern streaming era, where platforms like Spotify handle marketing and distribution. They suggest a 10% fee would be more reasonable.

2. Video Streaming Income: The band claims significant underreporting of video streaming revenue. They should have received $4.9 million in video streaming royalties but only received $930,676 after YouTube's 40% cut.

The lawsuit seeks approximately $5.2 million in damages:

• $1.5 million for underpaid streaming royalties
• $3.7 million for video streaming revenue
• Additional pre-judgment interest and court costs

Background:

• The band signed with Island Records in 1993
• Their "Zombie" music video exceeded 1 billion YouTube views in 2020
• Previous royalty disputes with UMG occurred in 2000 and 2003, though these claims were withdrawn
• The band's final album was released in 2019, following the death of lead singer Dolores O'Riordan in 2018

The lawsuit accuses Island Records and UMG of breach of contract and breach of implied covenant of good faith and fair dealing.

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