The Cranberries’ Company Sues Island Records Over Millions in Unpaid Royalties
The company representing Irish rock band The Cranberries has filed a lawsuit against Island Records, claiming the record label withheld millions in streaming royalties through questionable accounting practices.
Curtain Call Limited, the Irish corporation formed in 1989 as a loan out corporation to provide the recording services of The Cranberries, filed the complaint in the United States District Court for the Southern District of New York, seeking damages for alleged underpayment of royalties.
The lawsuit alleges that Island Records, a division of Universal Music Group, has systematically underpaid royalties for music streams on platforms like Spotify and YouTube. According to court documents, an audit of Island Records’ books covering January 2017 through June 2021 revealed significant discrepancies.
At the heart of the dispute is how Island Records handles international streaming revenue. The complaint claims the label deducts a 40% fee through affiliated foreign companies before calculating royalties — a practice Curtain Call argues is not permitted by their recording agreements and represents an excessive charge for what amounts to passive income collection.
The lawsuit also takes aim at how Island Records accounts for YouTube revenue through Vevo, the music video platform partially owned by UMG. According to court documents, The Cranberries’ videos were streamed more than 2 billion times, generating over $9.85 million in revenue, but the band’s company received only a fraction of these earnings.
The Cranberries, known for hits like “Zombie,” “Linger,” and “Dreams,” formed in Limerick, Ireland with members the late Dolores O’Riordan, Noel Hogan, Mike Hogan, and Fergal Lawler. The band signed recording agreements with Island Records in 1991, 1995, and 1998.
This case joins other lawsuits challenging how major record labels calculate and distribute streaming royalties. The case seeks damages of no less than $1.5 million for breach of contract and no less than $3.7 million for breach of the implied covenant of good faith and fair dealing, plus pre-judgment interest and costs.
The complaint notes that Curtain Call and Island Records entered into tolling agreements which preserved all claims that accrued during the audit period, effective as of September 21, 2021.
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