toggle

AAPL Stock: 111.78 ( -0.87 )

Printed from http://www.macnn.com

Apple, carriers agree to UK royalties

updated 06:35 pm EDT, Thu September 28, 2006

UK music royalty agreement

Apple's iTunes and mobile operators including Vodafone on Thursday agreed on royalty rates to pay song writers and music publishers for digital downloads in Britain to partly resolve a dispute, according to Reuters. Under terms of the deal, Apple and four mobile operators will pay 8 percent of gross revenue, excluding VAT, for all music sold digitally excluding ringtones--extending a reduced price agreement that has been in place for four years. Under a previous deal, the law stated that the song writers and publishers must receive 12 percent; however, the royalty had been temporarily reduced to 8 percent based on a mutual agreement. The new agreement also implements a 6.5 percent royalty rate for non-on-demand services such as streaming, according to the report. The deal was announced in a joint statement by the trade group representing record labels, BPI, and MCPS-PRS Alliance, which fixes and collects royalties on behalf of the composers, song writers and music publishers.

"All parties to the settlement welcome this agreement, which will help drive the on-going growth of the legitimate digital music market," the statement said. The agreement also included mobile operators O2, France Telecom's Orange and Deutsche Telecom's T-Mobile.

The publication also reports that the agreement includes a minimum price rate which ensures the music creators would still receive a rate, even if the price of music drops significantly.

"This is a balanced voluntary settlement in which both sides can draw not just comfort from, but excitement that they can go forward and build a business together based on an understanding that will work to the benefit of all," BPI Chairman Peter Jamieson told Reuters.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

MacNN Sponsor

Recent Reviews

Dell AD211 Bluetooth speaker

For all of the high-priced, over-engineered Bluetooth speakers in the electronics market, there is still room for mass-market solution ...

VisionTek 128GB USB Pocket SSD

USB flash drives dealt the death blow to both the floppy and Zip drives. While still faster than either of the old removable media, sp ...

Kodak PixPro SL10 Smart Lens Camera

Smartphone imagery still widely varies. Large Megapixel counts don't make for a good image, and the optics in some devices are lackin ...

toggle

Most Commented