Feeds

Apple royalty skirmish ends in stalemate

iTunes shutdown threats no more

The Essential Guide to IT Transformation

Apple's fight against paying songwriters has ended in a stalemate today.

The US Copyright Royalty Board rejected raising online royalty rates for song publishers — effectively ending Apple's threats that it would shut down iTunes if the song composer share was increased from 9 cents per song to 15 cents.

The rate has now been frozen at 9.1 cents per download for the next five years. CRB also established for the fist time a royalty rate for ringtone purchases at 24 cents per purchase.

Apple, along with the Digital Media Association (DiMA) and Recording Industry Ass. of America (RIAA) had been pushing for a reduction to only 4.8 cents a track, or 6 per cent of "applicable revenues."

Apple pays about 70 cents on the dollar to record labels, which in turn pays 9 cents to music publishers who hold the copyright for the music.

Although Apple has overtaken Wal-Mart as the top US music retailer this year, the company claims profits from music downloads are slim.

Happy not have lost their shirts to a pro-Apple decision, the National Music Publishers Association said the ruling was a positive for songwriters and music publishers.

These events will bring clarity and order to an environment that for the past decade has been hampered by litigation and uncertainty on all sides," said NMPA chief, David Israelite in a statement.

The sentiment seems to be consistent across the table.

"We're pleased with with CRB's decision to keep royalty rates stable," Apple wrote in a statement. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.