Volume IV

Issue : 16: October 5, 2006

• File Sharing Software Provider Found Liable by US Federal Court
• GAOL Faces Lawsuit Over Search Data Release
• CIRA Dismisses Complaint Over forsale.ca
• Google Decides to Obey Belgian Court Order
• Publishers Aim for Control of Search Results
• Federal Privacy Commissioner Finds Collection of Personal Credit Information by Law Firms Violates Privacy Laws
• Royalty Agreement Reached for UK Digital Music Downloads
• Luxury Goods Makers Sue eBay Over Sales of Counterfeits
• British Bookmaker Blocks Online Betting by U.S. Customers
• U.S. Congress Passes Anti-Gambling Legislation

Home > Volume IV > Issue 16: October 5, 2006 > Royalty Agreement Reached for UK Digital Music Downloads

Royalty Agreement Reached for UK Digital Music Downloads

Record companies and songwriters in the United Kingdom have reached an agreement over royalties covering online digital music sales, including digital music sales and mobile phone ring tones. Songwriters will receive 8% of revenues for each song downloaded, for a period of three years. The figure is a compromise between the record companies’ demand for 6.5% royalty, and the songwriters’ demand for 12%.

While it only applies to music purchased online in the United Kingdom, many believe this settlement sets a precedent for similar cases worldwide. Other countries that will likely follow this settlement for their own negotiations include Germany and the United States. Online digital music sales are currently a small percentage of the overall music market, but they are increasing rapidly. The International Federation of the Phonographic Industry (IFPI) estimates that online music sales tripled in 2005 to reach 6% of worldwide music sales. The potential importance of this UK settlement is great and far-reaching, and should not be underestimated.

For additional information, visit:

http://arstechnica.com/news.ars/post/20060928-7861.html