Overview
In an opinion issued today, Judge Kaplan allowed most of the contract claims by the band Toto (known particularly for smash 80’s hit “Africa” and grammy-award-winning “Rosanna”) to proceed against Sony Music. The contract in question is a 1977 recording contract that entitles Toto to royalties on the distribution, sale and licensing of its master recordings. Toto claims that royalties for music distributed by so-called “Download and Mastertone Providers” (iTunes, amazon.com, et al) are governed by a provision regarding the lease of master recordings, while Sony claims that those royalties are governed by an “Audiophile Provision” that covers “records…marketed in a specially priced catalog series by reason of their superior sound quality.” Toto has alleged that since January 1, 2005, it has been underpaid by Sony to the tune of $500,000.