Deal Reached For Online Music Royalties

Songwriters and record companies in Britain reached an agreement over royalties for online music sales just as a copyright tribunal that would have decided the issue went into session. In the dispute, record companies were represented by the British Phonographic Industry, and Adam Singer represented songwriters. Singer heads the Mechanical-Copyright Protection Society Ltd and the Performing Right Society Ltd. Songwriters and composers had sought a royalty rate of 12 percent, an increase from the existing rate of 8 percent. Record companies wanted the rate to drop to 6.5 percent. In the final negotiations, both sides agreed to accept the 8 percent rate for three more years, which amounts to about 10 cents per song sold on Apple’s iTunes service. The tribunal accepted the settlement, which is legally binding only in the United Kingdom. Nonetheless, experts said the deal could influence similar negotiations in other countries, including the United States and Germany.

Wall Street Journal, 28 September 2006 (sub. req’d)