45 million albums sold and $0 in royalties? Limp Bizkit’s case against UMG
If you like to follow the legal battles within the music industry, one of the most interesting right now is Fred Durst’s contention that Limp Bizkit has been massively ripped off by their record company, Universal Music. This is why he’s suing for US$33 million.
Here are Fred’s figures:
- Number of Limp Bizkit records sold worldwide: 45 million
- Number of streams in 2024: 1.7 billion
- Total royalties paid: $0
Wait–what?
Universal says that Limp Bizkit hasn’t been paid royalties because the label is still recouping US$43 million in advances.
Again: what?
Fred says that Limp Bizkit never agreed to these recoupment terms. They thought they had a 50-50 profit-sharing deal. But when they took a look, they found that they’d been roped into a traditional recoupment deal. That means all costs are charted to the artist and that there are no royalty payments to the artist until all these costs are recouped. Fred also says this contract dates back to the 90s. No one had even anticipated streaming back then.
Universal has made good on a few things, including US$1 million to Limp Bizkit and US$2.35 million to Flawless Records, which is owned by Fred. This money only came after legal action was launched.
The battle continues. Other artists from the Limp Bizkit era are watching this very carefully because depending on the outcome, this could change royalty payouts forever.
