The Cranberries are pursuing legal action against Island Records and Universal Music Group (UMG) over alleged unpaid digital streaming royalties, with the lawsuit filed in Manhattan federal court.

Photo Credit: Poudou99 / CC by 3.0

A 2021 audit by Prager Metis revealed significant discrepancies in royalty payments, particularly from international Spotify streams compared to U.S. streams. The band alleges Island Records has been paying foreign streaming royalties based on 60% of revenue received by foreign distributors, an outdated model from the physical distribution era.

The lawsuit argues this arrangement is excessive since streaming platforms now handle marketing, promotion, and distribution - typically charging 30% for these services. The band contends a 10% fee would be more reasonable in today's digital landscape.

Key points of the lawsuit:

• Video streaming royalties: The band claims they're owed $4.9 million but only received $930,676
• Spotify royalties: Seeking minimum $1.5 million in underpaid streaming revenue
• Total damages sought: $5.2 million plus interest and court costs

The case centers on two main claims: breach of contract and breach of implied covenant of good faith and fair dealing. This marks the band's third legal action against UMG, following withdrawn claims in 2000 and 2003.

The Cranberries, who signed with Island Records in 1993, achieved global success with hits like "Zombie," whose music video surpassed one billion YouTube views in 2020. The group disbanded following lead singer Dolores O'Riordan's death in 2018, releasing their final album posthumously in 2019.

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