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The Cranberries have filed a lawsuit against Island Records and Universal Music Group (UMG) in Manhattan federal court, claiming millions in unpaid digital streaming royalties.

A 2021 audit by Prager Metis revealed significant discrepancies in how Island Records handled streaming payments. The label was paying lower royalties for international Spotify streams compared to U.S. streams, taking a 40% cut for overseas distribution services that are now primarily handled by streaming platforms themselves.

The lawsuit highlights two main issues:

1. International Streaming Royalties:

• Island Records currently takes 40% of foreign streaming revenue
• The band argues this rate is "excessive" as streaming platforms now handle distribution
• They propose a 10% fee would be more reasonable
• Seeking $1.5 million in damages

2. Video Streaming Revenue:

• Band received $930,676 in video streaming royalties
• Claims they're entitled to $4.9 million after YouTube's 40% cut
• Alleges significant underreporting of video streaming revenue
• Seeking $3.7 million in damages

The total lawsuit amounts to $5.2 million plus additional costs. This isn't the first time the Irish rock group has challenged UMG over royalties, with previous suits filed in 2000 and 2003, though both were later withdrawn.

The band, which formed in 1991 and signed with Island Records in 1993, achieved global success with hits like "Zombie." The group disbanded following lead singer Dolores O'Riordan's death in 2018, with their final album released posthumously in 2019. Their "Zombie" music video surpassed one billion YouTube views in 2020, making them the first Irish act to achieve this milestone.

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