A 2007 lawsuit filed against Universal Music Group involving Hip-Hop megastar Eminem will finally go to trial today (February 24) over alleged downloading proceeds owed to the rapper.

Representing Eminem in the case is publishing company F.B.T. Productions.

The grievance revolves around what percentage of digital royalties Eminem should receive when Universal sells his music to third party networks, like the popular iTunes service.

Additionally, other proceeds like ringtones sales from phone companies are in question.

“The claims made by FBT Productions are completely meritless and we look forward to presenting our side in court,” UMG told AllHipHop.com in a statement today (February 24).

In the lawsuit, the entity claims Dr. Dre’s Aftermath is withholding $1.3 million in royalties, and violating the Detroit emcee’s 1998 contract that guarantees him 50% of established royalties from all music sales.

Although the pending trial does not involve a large amount of money, a winning judgment could potentially empower artists who normally receive the smallest revenue share from the music they create.

Currently, record labels have been selling artist downloads to thirds parties as distribution deals, which significantly lower any royalties due to them.

However, if the courts rule in favor of Eminem, these sales would now be viewed as licensing agreements, which normally entitle artists to an equal 50/50 split of royalties.

With the music industry moving exclusively to downloading, this potential breakthrough would be a literal difference of millions of dollars to musicians worldwide.

Because downloading is a relatively new development in the music industry, there is no precedent for the Central District Court of California to fall back on when interpreting the laws.

Universal Music Group holds some of the most lucrative catalogues in the industry, such as The Eagles, Nirvana, Dr. Dre, Kanye West, 50 Cent, Nas, Lil Wayne, Mariah Carey, Mary J. Blige, Aerosmith, and many others acts spanning all genres of music.

At press time, Eminem is not expected to appear.

However, Apple President Steve Jobs and Interscope-Geffen-A&M chairman Jimmy Iovine are named in the lawsuit and will testify.

News Corporation Chairman and CEO Rupert Murdoch personally apologized today (February 24) for a cartoon published in The New York Post.

The cartoon, which was published last Wednesday (February 18 ) in The New York Post, featured two police officers – one with a smoking gun – standing over a bullet-riddled dead chimp.

The caption read: “They’ll have to find someone else to write the next stimulus bill.” The cartoon, authored by Sean Delonas, was published just one day after President Barack Obama signed a historic stimulus bill.

“Today I want to personally apologize to any reader who felt offended, and even insulted,” said the statement from Murdoch, CEO of News Corp., which also owns Fox, the F/X cable network, 20th Century Fox and various publishing interests in addition to The New York Post.

“I can assure you — without a doubt — that the only intent of that cartoon was to mock a badly written piece of legislation.” Murdoch said the cartoon “was not meant to be racist, but unfortunately, it was interpreted by many as such.”

“We all hold the readers of The New York Post in high regard, and I promise you that we will seek to be more attuned to the sensitivities of our community,” said Murdoch.

During an interview with CNN, Delonas himself made an attempt to defend the cartoon, which has made national headlines around the world.

“Do you really think I’m saying Obama should be shot? I didn’t see that in the cartoon,” Delonas told CNN. “It’s about the economic stimulus bill,” he added. “If you’re going to make that about anybody, it would be [House Speaker Nancy] Pelosi, which it’s not.”

Meanwhile, the fallout over the article continues and Murdoch’s apology may have come too late.

On Saturday (February 21), the NAACP issued an ultimatum to The New York Post and FOX, threatening a boycott if Delonas and Australian editor-in-chief, Col Allan.

“There is consensus that if the Post does not … get rid of the journalists who are responsible for this bit of hate speech seeing the light of day, that we will move this from a local, regional issue to a very national issue,” said Benjamin Todd Jealous, president of the NAACP.

Atlanta rapper Shawty Lo has announced a May release date for his sophomore autobiographical effort Carlos, the follow up to his 2008 debut, Units in the City.

Carlos features appearances from a number of top rappers, including Lil’ Wayne, Gucci Mane, Rick Ross, Bun B, T-Pain, Lil Kim, fellow group members D4L and singer Trey Songz.

The first single off of Carlos – which the Bankhead rapper has deemed has most personal recording – will be the track “Supplier” featuring Trey Songz. 

“I know I’ve said it before but I came from nothing and have made it to the other side, but I can’t turn my back on my hood because that place [Bowen Homes] and my community [Bankhead] have made me who I am,” Shawty Lo told AllHipHop.com in a statement. “I’ve never proclaimed to be no more than what I am, so if people love or hate me, at least they love or hate me for being exactly who I am and not some manufactured image.”

Production on Carlos features a group of new production talent, including G-Fresh, Mike Will, KE on the Track, meal Ticket and Pauli Paul.

Shawty Lo hopes Carlos can help create the same success he experienced with his debut release, Units in the City.

The album produced a number of hit singles including the smash, “Dey Know,” which also became a multi-platinum ringtone.

Units in the City also helped earn the rapper the “Rookie of the Year” award at the 2008 BET Awards, as well as the title “Breakthrough Artist” at the Ozone Awards.

Shawty Lo’s Carlos is due in stores May 5 on DFL/Asylum.

Supplier – Shawty Lo Feat Trey Songz

Amaru Entertainment has responded to a lawsuit over the rights to the film adaptation of rapper Tupac Shakur.

MorganCreek filed the lawsuit against Amaru Entertainment in Los Angeles Superior Court last week.

The lawsuit claims Amaru Entertainment is in breach of contract for refusing “to honor and perform a contract of a production of the film based on the life of Tupac Shakur.”

“Tupac touched so many people in his brief life and it makes me feel honored in keeping his message alive,” Afeni Shakur told AllHipHop.com in a statement. “And I want to do so with integrity – in the right way with the right people…That’s what Tupac would have wanted.”

Another rep for Amaru was more candid about the lawsuit and claimed it had “no merit.”

“We felt it was important to bring the story of Tupac Shakur, one of music’s most remarkable icons, to life onscreen and, in realizing this vision, we sought to find the best partner who would be true to Tupac’s vision and bring his unique story to life on the big screen,” another rep for Amaru said in a statement. “In doing so, we have taken every step to ensure that our partner in this process is committed to the integrity of Tupac Shakur’s legacy and, more importantly, that they are the right people.”

Amaru Entertainment also claimed that MorganCreek contacted other movie production houses, in an attempt to allegedly sabotage any new negotiations.

Amaru Entertainment is now filing a counter-lawsuit against Morgan Creek over the movie and sabotage allegations.

“Sadly, MorganCreek decided to take advantage of this situation and attempt to frustrate our project by interfering with our business relationships,” the rep stated. “We will not be frightened by MorganCreek’s tactics and we are absolutely confident that the movie will be produced and released.”

The news comes on the heels of the success of Notorious, the life story of Tupac Shakur’s one time rival, The Notorious B.I.G. The movie grossed over $21 million dollars in its opening weekend, despite bad reviews from critics.

Both artists were involved in a bitter feud that eventually led to their deaths. Shakur was gunned down on the Las Vegas strip in September of 1996, while B.I.G. was shot and killed six months later in Los Angeles in March of 1997.

Since their deaths, entire cottage industries have sprung up around both Shakur and B.I.G. in the form of numerous posthumous releases, including books, albums, TV specials, documentaries and movies.

“Tupac’s story is what Hollywood legends are made of – and we want to make sure that the movie tells Tupac’s story like it should be told and lives up to everyone’s expectations,” the rep for Amaru said.

Rapper Xzibit has lashed out at media outlets for putting what he labeled “spin” on comments he made about mogul Sean “Diddy” Combs.

When Xzibit recently appeared on Sirius Satellites’ Foxxhole radio where he shared a story about his New Year’s party with Combs and Karrine “Superhead” Steffans.

The trio then headed to a New Year’s Party in Miami, which Xzibit allegedly witnessed two men kissing and another man dancing completley naked.

“We take off. We leave the club directly. I didn’t say peace to nobody. It was suspect,” Xzibit said in the previous interview.” X addressed the issue today on his myspace blog, claiming the media had taken his statements out of context.

“Wow, so I wake up this morning and my phone is going nuts,” Xzibit wrote. “I turn on the computer and find all this s### about me ‘throwing puffy under the gay bus’ whatever that means. All this SPIN that you journalist are putting on the statements I made on a radio show to DIRECTLY effect a guy in a manor not intended is wrong.”

Xzibit said he received a call from Combs himself, who clarified that the venue was an after-hours spot called Space.

“The rumor mill that has ground this bulls**t out to be the s**t storm that it is, is doing so on its own accord. Like I said at the top, I have no beef with Diddy. BUT WAIT… a bigger problem I see is the negative stance these Hip-Hop sites and blog sites are taking when speaking of gay people in general. All I can say to that is: PEOPLE GROW UP! I do NOT like to spread hate and make it a point not to do so, so this is not the way I intended this interview to unfold. You heard it directly from me ladies and gents, Im looking forward to the issues at hand that really mean something to both my fans and Diddy’s as well: ART & MUSIC.”

Queens, New York rap star N.O.R.E. was arrested in Miami Beach, after getting into an altercation with a customer inside of a Fatburger restaurant.

According to Miami Beach police, N.O.R.E., 31, was arrested early Sunday morning (February 22).

The rapper and another unidentified man were reportedly arguing inside of Fatburger, when N.O.R.E. ripped up a bouquet of flowers and threw a cup of liquid at the man.

The Associated Press reports that N.O.R.E. then punched the man in the face and yelled “Do you know who I am?”

N.O.R.E., born Victor Santiago, was charged with misdemeanor battery and disorderly conduct and booked into Miami-Dade county jail, but has since been released.

N.O.R.E. and has longtime partner Capone are preparing a highly anticipated album Channel 10, which their first album together in over eight years.

Channel 10 is due in stores March 17.

Award-winning British rapper M.I.A. can add another accomplishment to her list of accolades, courtesy of the Academy of Motion Picture Arts and Sciences.

The entertainer took home an Oscar for best original song last night (February 22) at this year’s Academy Awards.

M.I.A. received the honor for her work on the tune “O Saya,” which was composed by Indian music director A.R. Rahman for the critically-acclaimed film Slumdog Millionnaire.

M.I.A.’s win on Sunday was among a string of awards given for Slumdog.

The feature captured eight Oscars, including best picture, best cinematography, best adapted screenplay, best score, best editing, best sound mixing and best director for Danny Boyle.

The Oscar for “O Saya” caps off an eventful February for M.I.A.

The Sri Lankan entertainer performed the hit “Swagga Like Us” alongside fellow rappers T.I., Lil Wayne, Jay-Z and Kanye West at the Grammy Awards.

The song went on to win the Grammy for best rap performance by a duo or group.

M.I.A., who also received a record of the year nomination for her song “Paper Planes,” gave birth to a baby boy just days after the Grammys on February 11.