The Cranberries Sue Island Records Over Millions in Unpaid Streaming Royalties
The Cranberries have initiated legal action against Island Records and Universal Music Group (UMG) in Manhattan federal court, claiming millions in unpaid digital streaming royalties.
The Cranberries performing live concert
Photo Credit: Poudou99 / CC by 3.0
A 2021 audit by Prager Metis revealed significant discrepancies in royalty payments, particularly from international streaming revenues. The band alleges that Island Records has been paying them based on 60% of revenue received from foreign distributors, an outdated model from the physical distribution era.
The lawsuit highlights two major issues:
-
Foreign Streaming Royalties: Island Records continues charging a 40% fee for marketing and distribution services now primarily handled by streaming platforms. The band argues a 10% fee would be more reasonable, seeking $1.5 million in damages.
-
Video Streaming Revenue: The Cranberries claim they've received only $930,676 of the $4.9 million they should have earned from video streaming after YouTube's 40% cut. They're seeking $3.7 million in additional compensation.
The Irish rock group, which formed in 1991 and signed with Island Records in 1993, achieved significant success with hits like "Zombie," whose music video surpassed one billion YouTube views in 2020. The band released their final album in 2019, following the tragic death of lead singer Dolores O'Riordan in 2018.
The total lawsuit seeks $5.2 million plus pre-judgment interest and court costs. This isn't the first time The Cranberries have pursued legal action against UMG, with previous suits filed in 2000 and 2003, though both were later withdrawn. The current lawsuit charges the company with breach of contract and breach of implied covenant of good faith and fair dealing.