The Latin singer claims the label has been “systematically underpaying” him.
Enrique Iglesias slapped Universal Music Group with a lawsuit, claiming the record company owes him millions of dollars in royalty fees.
The Latin singer, who left Universal in 2015, said that the label has been “systematically underpaying” him for royalties related to songs played on streaming music services like Spotify, SoundCloud and Pandora.
The lawsuit, which was filed in Miami federal court on Wednesday, alleges that Universal paid the “Bailando” singer a “small fraction” of the 50 percent royalty rate outlined in his contract for streamed music.
The dispute centers on Iglesias’ 1999 contract, which included language that indicated that he would be paid a 50 percent royalty rate for digital and physical album sales, as well as “any type of use” not specifically mentioned in the contract.
Streaming did not exist at the time, but Iglesias’ lawyers contend that fees from streaming fall into that category. The singer renegotiated his contract in 2010 to include two more albums, but Universal did not include a clause for streaming royalties. Because of that omission, Iglesias believes that the company should pay him the 50 percent royalty rate, which Universal has not.
Iglesias sent letters to Universal in 2017, objecting to the company’s accounting practices and demanding his payments get readjusted to reflect the 50 percent rate for streaming. Before filing the lawsuit, the musician asked to inspect Universal’s books, but the company did not comply.
A spokesman for Universal declined to comment on the lawsuit
