Ripping Bits and Licensing Fees
Eminem’s former production company, FBT, argues that a download is not, in fact, a purchase of music, but rather a license issued through a retailer. As such, the percentage that the artist takes home at the end of the day should be higher, in accordance with licensing terms.
Universal, meanwhile, appears to be arguing that purchasing digital music for download is no different from buying a CD or LP.
from “Eminem’s former publisher wants more money for digital downloads”
This is Situation Normal for the record labels: when they’re losing money, they’ll define a music sale as a purchase to try and keep more dollars.
But when trying to fight P2P, they argue that any copying of music is illegal. They later said they didn’t mean it, but I would be surprised if the “CD ripping as an illegal duplication” argument didn’t surface again in a court of law sometime this year.