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Superstar Enrique Iglesias sues former label in contract dispute

On Behalf of | Feb 12, 2018 | Contract Disputes

Many Texans regularly deal with problems created by the failure to follow through on contracts and agreements. However, these issues aren’t limited to just entrepreneurs and small businesses; even major celebrities can deal with serious concerns caused by disputes over the implementation of contracts. For example, the Latin pop star Enrique Iglesias is suing Universal Music over streaming royalties in a lawsuit filed in January 2018.

Iglesias claims that he has received only a small percentage of his 50 percent royalty rate for streaming plays. The musician alleges that a breach of contract by the music distributor has deprived him of millions of dollars, and he is seeking enforcement of the stated royalty rate as well as compensation for royalties he did not receive. Iglesias’ lawyer said that the business partnership between the musician and the label has achieved exceptional financial and musical success over the years as reflected in album popularity as well as billions of streams of his songs.

The lawsuit also says that despite provisions in his contract that designate a 50 percent royalty rate for digital use, there is no explicit discussion of streaming. Iglesias was represented by Universal from 1999 through July 2015. The lawsuit claims that Iglesias received streaming royalties at a 50 percent rate until 2016, when the rate was suddenly decreased after a new directive at the label. Now, Iglesias is claiming that accounting issues have deprived him of millions of dollars that are rightfully his.

People who are dealing with business issues and contract disputes can lose significant sums of money as debates drag on. Furthermore, future contracts with other vendors and clients can be put at risk by an earlier breach. A business and commercial attorney can help a client dealing with contract issues seek a resolution to the dispute and repair a breach.


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