By Margaret Lyons
Updated March 06, 2009 at 12:00 PM EST

A Los Angeles jury today rejected arguments that Eminem’s music publisher is entitled to additional royalties on digital downloads of the rapper’s music, ruling in favor of Universal Music Group. According to the Wrap, “when an album is downloaded on iTunes, it falls under the ‘records sold’ provision of the agreement, giving Eminem an 18.23 percent royalty rate. F.B.T. contends that a digital download is not a record sold but rather a license, and should therefore fall under the ‘master license’ provision of the contract. That would entitle the artist to a 50 percent royalty rate.” The decision means F.B.T. Productions will not collect the $1.47 million they sought from UMG, but more generally, it sets a precedent for negotiating music distribution contracts.