Apple 2.0

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Apple and Eminem settle out of court

October 2, 2009: 2:00 PM ET
Eminem. Photo: Eight Mile Style

Eminem. Photo: Imagine Entertainment

The dispute was over money, and like most civil cases, this one was settled out of court.

After five days of trial in a Detroit federal courthouse, Apple (AAPL) and Eminem's publisher, Eight Mile Style, came to an agreement Thursday night that neither side wants to talk about, according to the Detroit Free Press.

At issue were royalties on 93 songs that Apple has been selling on its iTunes music store under an agreement with Dr. Dre's Aftermath Records, which controls the rapper's sound recordings.

As Eminem's music publisher, Eight Mile Style had claimed copyright infringement. It was seeking to recover $2.58 million -- its estimate of how much Apple has earned from sales of the music -- as well as damages, which it set at $150,000 per infringement, or nearly $14 million.

Eminem, whose real name is Marshall Mathers III, was not officially party to the suit and did not appear in court.

The case dates back to July 2007, when Eight Mile Style sued Apple, alleging that digital rights to Mathers' songs had been sold without its approval.

The publisher had previously sued Apple for unauthorized use of his hit single "Lose Yourself" in an iTunes TV commercial. That dispute was also settled out of court.

During the course of the trial Apple's attorney revealed that Aftermath has been receiving 70 cents per download and Eight Mile Style 9.1 cents. Apple's attorney said that the publisher had been cashing its checks, which over the years amounted to "a lot of money."

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About This Author
Philip Elmer-Dewitt
Philip Elmer-Dewitt
Editor, Apple 2.0, Fortune

Philip Elmer-DeWitt has been covering Apple since 1982, first for Time Magazine, and now on the Web for Fortune.com.

Email | @philiped | RSS
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