SAN FRANCISCO (Hypebot) – When LimeWire agreed in May to pay major record labels $105 million, it also promised to pay independent labels, according to a lawsuit filed by Merlin. The indie licensing organization says it had not to filed a lawsuit previously because LimeWire signed an agreement in 2008 promising to pay indies in proportion to any settlement with the majors.
After the major label deal became public, LimeWire allegedly denied that it had offered indies similar settlement terms and refused to pay.
Merlin is a Netherlands-based nonprofit that represents more than 12,000 labels globally. They have now sued LimeWire for copyright infringement demanding $5 million, and are represented by Donald Zakarin and Frank Scibilia with Pryor Cashman, according to Courthouse News.