Court Won't Get Involved in Eminem Royalty Suit

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The Supreme Court won't get involved in a fight between Eminem's former production company and Universal Music Group over downloads of the rapper's songs and ringtones.

The high court on Monday refused to hear an appeal from Universal Music Group.

The 9th U.S. Circuit Court of Appeals said F.B.T. Productions LLC's contract entitled Eminem and his producers to a 50-50 split with Universal for recordings licensed to digital distributors such as Apple Inc.'s iTunes.

The record label had paid F.B.T. and Eminem 12 percent of sales, the agreed-upon rate for physical albums.

F.B.T. discovered Eminem in 1995 before he signed in 1998 with Dr. Dre's Aftermath Records. Universal's Interscope Records distributes Aftermath recordings.



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Workers’ Compensation Subrogation of Administrative Fees and Costs

When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.

In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.

In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.

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