Wednesday, September 24, 2008

Music Labels Sign Landmark Streaming Music Royalty Deal

The recording industry, music publishers and online music services have revealed the details of a landmark royalty deal for streaming and limited downloads of music, which was first announced June 18. The agreement proposes a mechanical royalty rate of 10.5 percent of revenue, less any amounts owed for songwriter performance royalties, for digital service providers such that offer interactive streaming and limited downloads such as subscription and ad-supported services. When the settlement was first announced, details were kept confidential until they were submitted to the CopyRight Board in draft regulations. In the settlement, the Recording Industry Association of America, the Digital Media Association, the National Music Publishers' Association, the Nashville Songwriters Association International and the Songwriters Guild of America have all agreed to the new rate. The deal doesn't address rates for physical product, permanent music downloads or ringtones, but all of those issues, as well as today's agreement, are expected to be ruled on by Oct. 2 by the U.S. Copyright Royalty Judges.

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