Lawsuit Seeking Greater Digital Royalties for Eminem\'s Music Is Settled

Larry Busacca/Getty Images for the Recording Academy Eminem performing at the Grammys in 2011.

A federal lawsuit that has been closely watched in the music industry because of its potential effect on the contentious issue of digital royalties has been settled.

In the case, F.B.T. Productions v. Aftermath Records, a team of Eminem's early producers sued a subsidiary of the Universal Music Group, arguing that they were not getting the royalties they were owed from downloads at iTunes and other digital stores.

The label calculates the royalties for those downloads as it does for CDs, but F.B.T. contended that the downloads should instead be treated as licensed music, whic h pays substantially higher royalties. (In typical contracts, artists earn a royalty of 10 percent to 20 percent from sales of albums and singles, and 50 percent from licenses for other uses, like a TV commercial.)

The United States Court of Appeals for the Ninth Circuit, in California, ruled in F.B.T.'s favor in 2010, overturning a jury verdict by a lower court, and the parties have been involved in a damages trial for more than a year. They announced the settlement in a court filing on Monday, but both sides declined to reveal the terms of their agreement.

The F.B.T. case - Eminem himself was not a party - opened the door for a wave of litigation over the last two years. Artists as varied as Kenny Rogers, James Taylor, the Temptations, Weird Al Yankovic and Rob Zombie have all filed suits arguing that their labels owed them huge amounts of digital royalties. Sony settled a similar class-action suit earlier this year, agreeing to pay artists a total of $8 millio n.

The full effect of the F.B.T. case on the music business is still unclear. Universal declined to comment on Tuesday, but in the past the company has disputed that the case set a legal precedent. David M. Given, a lawyer in San Francisco involved in a number of such cases, including one filed by the estate of the singer Rick James, disagrees with that view.

“The legal precedent the case set has already had a profound impact,” Mr. Given wrote in an e-mail on Tuesday. “If U.M.G. paid the price, which I think it probably did, then that will set the bar (which I expect will be high) for the settlement of other download royalty claims, like the ones in the James class action, for other recording artists.”

Ben Sisario writes about the music industry. Follow @sisario on Twitter.

Disney Buying Lucas Films for $4 Billion

LOS ANGELES - The Walt Disney Company, in a move that gives it a commanding position in the fantasy world of film, said Tuesday it had agreed to acquire Lucasfilm Ltd. from its founder, George Lucas, for $4.05 billion in stock and cash.

The sale provides a corporate home for a private company that grew from Mr. Lucas's hugely successful “Star Wars” series, and became an enduring force in creating effects-driven science fiction entertainment for large and small screens. Mr. Lucas, who is 68 years old, had already announced he would step down from day-to-day operation of the company.

Combined with the purchase of Marvel Entertainment for $4 billion in 2009 and of Pixar Animation Studios for $7.4 billion in 2006, the acquisition also guarantees the legacy of Robert A. Iger, Disney's chief executive, as a builder who aggressively expanded the company since taking charge in 2005.

Mr. Iger is set to step down as chief executive in March of 2015, but will re main with Disney in a lesser role under an employment deal he reached with Disney last year.

Like the Marvel acquisition, the Lucasfilm deal appears to have caught Hollywood and Wall Street by surprise. It was announced on Tuesday afternoon, while the New York Stock Exchange was closed by storm damage, though investors were scheduled for a briefing on the acquisition in a conference call set for late Tuesday afternoon.

Disney Buying Lucas Films for $4 Billion

LOS ANGELES - The Walt Disney Company, in a move that gives it a commanding position in the fantasy world of film, said Tuesday it had agreed to acquire Lucasfilm Ltd. from its founder, George Lucas, for $4.05 billion in stock and cash.

The sale provides a corporate home for a private company that grew from Mr. Lucas's hugely successful “Star Wars” series, and became an enduring force in creating effects-driven science fiction entertainment for large and small screens. Mr. Lucas, who is 68 years old, had already announced he would step down from day-to-day operation of the company.

Combined with the purchase of Marvel Entertainment for $4 billion in 2009 and of Pixar Animation Studios for $7.4 billion in 2006, the acquisition also guarantees the legacy of Robert A. Iger, Disney's chief executive, as a builder who aggressively expanded the company since taking charge in 2005.

Mr. Iger is set to step down as chief executive in March of 2015, but will re main with Disney in a lesser role under an employment deal he reached with Disney last year.

Like the Marvel acquisition, the Lucasfilm deal appears to have caught Hollywood and Wall Street by surprise. It was announced on Tuesday afternoon, while the New York Stock Exchange was closed by storm damage, though investors were scheduled for a briefing on the acquisition in a conference call set for late Tuesday afternoon.

Wealthy Donated Less but Volunteered More in 2011

The “1 percent” have taken some lumps over the last year or so. But despite a dip in overall philanthropic giving, the majority of the wealthy donated a consistent proportion of their income to charity last year, a new study finds.

Ninety-five percent of wealthy households donated to charity last year, according to the 2012 Bank of America Study of High Net Worth Philanthropy. That is down from 98 percent in 2009, in a previous version of the study. (About 65 percent of the general population of United States households donate to charity, the study said.)

But the wealthy still gave roughly 9 percent of their incomes - about the same level as in 2009, the study found. Given the recent recession, that level of giving shows an “extraordinary” commitment to philanthropy, said Claire Costello, philanthropic practice executive for U.S. Trust, Bank of America Private Wealth Management. The average dollar amount given per household fell 7 percent, to $52,770 fr om $56,621, adjusted for inflation.

The study also showed an uptick in volunteering among the wealthy, suggesting that the affluent may have compensated for lower dollar donations by giving more of their time. In 2011, 89 percent of wealthy individuals volunteered with nonprofits, up from 79 percent in 2009.

The study was done in partnership with the Center on Philanthropy at Indiana University. The results are based on a nationwide sample of 700 households with net worths of $1 million or more, excluding the value of their homes, or annual household incomes of $200,000 or more.

About a quarter of wealthy households plan to increase their giving over the next three to five years, and about half said they planned to give at the same level, the study found.

How much of your income do you donate to charity?

\'Community\' to Return From the Wilderness in February, NBC Announces

“Community” fans will finally get a chance to see their favorite again - and on a night when better ratings could still save it.

The well-reviewed but lightly rated NBC comedy will return Feb. 7, and remain on Thursdays at 8. (It had originally been scheduled for the lost-items zone of Friday nights.)

NBC will also test the fans of the Broadway drama “Smash” by taking it away from the protection of the network's hit singing competition “The Voice” and moving it to Tuesdays at 10. It resumes with a two-hour episode on March 3 at 9.

Those were among a series of midseason announcements made by NBC on Tuesday.

Of most note was that the network will keep its new hit “Revolution” on Mondays at 10 - still after “The Voice” - when both return from a hiatus on March 25.

“The Biggest Loser” returns on Jan. 6 and “Celebrity Apprentice” on March 3.

“Community,” which will no longer be guided by its mercurial creator, Dan Harmon, will replace the departing “30 Rock” as part of a reconstructed Thursday. NBC is adding a new comedy, “1600 Penn,” at 9:30, starting Jan. 10. And “Parks and Recreation” will move to 8:30.

The scheduling of “The Voice,” “Revolution” and “Smash” means they will extend past the traditional end of the season in May - a move that could signal more interest in extending original programming into the summer.

Bill Carter writes about the television industry. Follow @wjcarter on Twitter.

Digital Gains Help Newspaper Circulation Figures

A steady increase in digital circulation has helped newspapers combat the pressures on their print product, with average daily and Sunday circulation remaining essentially flat for the sixth month period ending Sept. 30.

Digital circulation accounted for 15.3 percent of the total average circulation for newspapers in that period, up from 9.8 percent in the same period a year ago, an increase of more than 50 percent, according to figures released Tuesday by the Audit Bureau of Circulation. Those figures include readers using smartphones, tablets, e-readers or metered Web sites, the bureau said.

Daily circulation decreased an average of 0.2 percent during the six-month period for the 613 newspapers that report comparable figures. Sunday circulation increased by 0.6 percent, the data showed.

Digital gains helped some newspapers make striking gains in overall daily circulation. The New York Times, for instance, had an increase of more than 40 percent in total circulation, from 1,150,589 in 2011 to 1,613,865 in the period ended Sept. 30 this year. Its average digital circulation for Monday-Friday totaled just over 896,000, and increase of 136 percent over a year ago. The Wall Street Journal gained about 200,000 in daily circulation from 2011 and had a digital circulation of 794,594.

The Journal had the highest total daily circulation, the figures showed, followed by USA Today and The New York Times. USA Today had the biggest print circulation. The Times's average daily print circulation was 717,513, a 7 percent decline, and its Sunday average declined by 1.8 percent, to 1,250,077.

A Refresher on Hurricane Deductibles and Flood Coverage

Getty ImagesA man in New York City sweeps water out of his apartment after Hurricane Sandy.

If you were affected by the wrath of Hurricane Irene last year you may already know this, but it bears review in the wake of Hurricane Sandy: Damage caused by surging storm water generally isn't covered by your homeowner's or renter's insurance policy.

Rather, you'll only have coverage if you purchased a separate flood insurance policy, either from the National Flood Insurance Program or a handful of private firms.

The national flood policy covers damage for up to $250,000 to the structure of your home, and $100,000 for personal possessions. Note that the NFIP policy prov ides “replacement” cost coverage for the structure, but only “actual cash value” coverage for your belongings.

Damage from wind, however, is covered by homeowner's insurance policies-but it's likely subject to a special “hurricane deductible,” which is different from the policy's standard deductible. Coastal states from Maine to Texas have special rules for hurricanes, put in place to limit insurance losses after catastrophic storms. Details vary, but in general when a hurricane (or, in some cases, a named storm) is declared by the National Weather Service, special hurricane deductibles apply for resulting damage.

The standard deductible is usually a flat amount-$500 or $1,000, for instance. But hurricane deductibles are generally a percentage of the home's insured value and usually run from 1 to 5 percent. So, for instance, if a home is valued at $300,000, the deductible could be as high as $15,000.

Please let us know what conversations you've had with your insurance companies so far in the wake of Sandy.

 

A Refresher on Hurricane Deductibles and Flood Coverage

Getty ImagesA man in New York City sweeps water out of his apartment after Hurricane Sandy.

If you were affected by the wrath of Hurricane Irene last year you may already know this, but it bears review in the wake of Hurricane Sandy: Damage caused by surging storm water generally isn't covered by your homeowner's or renter's insurance policy.

Rather, you'll only have coverage if you purchased a separate flood insurance policy, either from the National Flood Insurance Program or a handful of private firms.

The national flood policy covers damage for up to $250,000 to the structure of your home, and $100,000 for personal possessions. Note that the NFIP policy prov ides “replacement” cost coverage for the structure, but only “actual cash value” coverage for your belongings.

Damage from wind, however, is covered by homeowner's insurance policies-but it's likely subject to a special “hurricane deductible,” which is different from the policy's standard deductible. Coastal states from Maine to Texas have special rules for hurricanes, put in place to limit insurance losses after catastrophic storms. Details vary, but in general when a hurricane (or, in some cases, a named storm) is declared by the National Weather Service, special hurricane deductibles apply for resulting damage.

The standard deductible is usually a flat amount-$500 or $1,000, for instance. But hurricane deductibles are generally a percentage of the home's insured value and usually run from 1 to 5 percent. So, for instance, if a home is valued at $300,000, the deductible could be as high as $15,000.

Please let us know what conversations you've had with your insurance companies so far in the wake of Sandy.

 

The Breakfast Meeting: Publishing Consolidates, and Creeping \'Christmas Creep\'

Despite the storm, David Letterman broadcast from Midtown Manhattan on Monday night, without a studio audience. Above, Denzel Washington braved the elements to appear on the show, entering in a yellow slicker while the band played Bob Dylan's song “Hurricane,” which did double duty for Mr. Washington, who portrayed the boxer Rubin Carter in the film “The Hurricane.”

The planned merger of Random House and Penguin, announced on Monday, could be the start of even more consolidation in publishing, Eric Pfanner and Amy Chozick report. As e-books become more central to commercial publishing, the thinking goes, the competition is not only from rival publishers but from online giants like Amazon, Google and Apple.

• The decision by the publishers' parent companies, Bertelsmann and Pearson, to create a combined company with about 25 percent of the A merican market will need regulatory approval, but there could be a benefit from being the first of the Big Six publishers to combine. As one analyst explained: “It's easier to argue that the industry going from six to five publishing houses won't change the market, than arguing that going from five to four players won't impact competition.”
• Interest in Penguin by News Corporation, which owns the publisher HarperCollins, may have sped up the merger. Rupert Murdoch, who runs News Corporation, took to Twitter to mock the merger: “Bertelsmann-Penguin faux merger disaster. Two publishers trying to contract while saying opposite. Let's hear from authors and agents!”

The Supreme Court on Monday heard a copyright case over the sale of imported textbooks on eBay, Adam Liptak reports. At issue is whether the so-called first-sale doctrine - which says that owners of particular copies of products made in the United States can later lend them or sell them - al so applies to copies made abroad. In the case of textbooks, prices can be lower overseas, and one enterprising student from Thailand helped pay for his education by selling copies that his family shipped to him. The publisher John Wiley & Sons sued him.

“Christmas creep” is in full effect this year, Stuart Elliott writes, with many retailers planning to start their holiday campaigns this week. Some, like Target and Toys “R” Us, are already on the air with ads. This development can still seem a shock to those used to Thanksgiving as the start of the Christmas shopping season, but it appears to work for the stores and the shoppers. In an uncertain economy, retailers want to get customers as soon as possible, and consumers have welcomed a longer shopping season to seek out better deals.

Noam Cohen edits and writes for the Media Decoder blog. Follow @noamcohen on Twitter.

Tuesday Reading: Scientists Have Long-Lasting Flu Vaccine in Sight

A variety of consumer-focused articles appears daily in The New York Times and on our blogs. Each weekday morning, we gather them together here so you can quickly scan the news that could hit you in your wallet.

• Hurricane Sandy leaves path of destruction in Northeast. (National)
• Corn mazes help farmers make ends meet. (National)
• In Seattle, virtual campus will have physical one, too. (National)
• Home retailers prepare for after the deluge. (Business)
• Business travelers stay with friends instead of hotels. (Business).
• Lean airlines in poor shape to clear passenger backlog. (Business)
• Moving closer to a long-lasting flu vaccine. (Science Times)
• Smoke-free workplace leads to fewer heart attacks. (Well)
• Ford continues slide in reliability survey. (Wheels)
• Hybrids and E.V.s do well in reliability survey. (Wheels)
• Running for the music. (Booming)