Lit Says Sony Music Is Its “Own Worst Enemy” in $800,000 Dispute

Formed in Orange County, California, in the 1990s, Lit solidified itself in rock music when releasing its second studio album, A Place in the Sun. Featuring songs like “My Own Worst Enemy” and ‘Zip-Lock”, Lit landed at No. 1 on the US Alternative Airplay chart. While releasing their latest album, Tastes Like Gold, in 2022, the band found itself going back to 1999 when they filed a lawsuit against Sony Music for $800,000 over a breach of contract stemming from streaming royalties. 

The music industry practically changed overnight thanks to streaming platforms like Spotify. Giving users the ability to access millions of songs, artists criticized record companies for not properly compensating them for the streams that helped drive the platform’s massive success. That’s why Lit filed a lawsuit, suggesting that Sony Music Entertainment has yet to pay them $800,000. 

Filing the lawsuit on March 2 in the Southern District of New York, Lit accused Sony of only paying them 14% in streaming royalties. According to the complaint, Sony should have used a “Net Receipts” model when calculating the payments. The formula is usually better for artists as it views streaming as a licensing deal instead of general sales. 

Lit Highlights Growing Problem In Digital Era Of Music

Lit didn’t stop there as the band also wanted compensation for video streaming, which they said Sony used the wrong formula again. According to the group, they were only paid 17% instead of the 50% that was written in their contract. If that wasn’t enough, Sony allegedly failed to raise the royalty rate after A Place in the Sun gained Gold and Platinum status. That milestone should take Lit from 14% to 15%. 

While the lawsuit included more than a few percentages and numbers, Lit insisted that Sony knew  “with full knowledge of the vast number of similarly situated artists materially impacted by [Sony’s] intentional breaches of its own contractual language.”

Hoping not to file a lawsuit, Lit first brought the payment concerns to Sony’s attention in 2023. At the time, Sony presented little support, eventually cutting all communications with the band or their legal team.

Although the case centers on Lit, it highlights a much larger issue in the modern music industry. As streaming continues to dominate how fans listen to music, more artists are questioning whether the deals they signed before the digital era still fairly reflect how their songs earn money in today’s market.

(Photo by Jim Steinfeldt/Michael Ochs Archives/Getty Images)