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Negotiations On Online Music Royalties Breakdown
Posted by: Tweaker
Date added: 03:59, 27th August 2005 GMT
Source: Internet Week
Both sides remain far apart on the percentage of revenue members of the Digital Media Association, which represents subscription services, should pay artists and publishers. The National Music Publishers' Association and the American Society of Composers, Authors and Publishers represent the latter group.
Companies such as RealNetworks Inc, Napster Inc. and Yahoo Inc. currently pay a flat fee to copyright holders for music that's streamed to subscribers. Unlike other services, such as Apple Computer Inc.'s popular iTunes, subscription services do not allow customers to burn music to CDs, unless they purchase the tunes separately.
Flat fees go back as far as 2001 and are being paid separately by each subscription service. The royalties amount to "several thousands of dollars" a month per service provider, according to Jonathan Potter, executive director of the digital media group. "No one is using the music for free," Potter said.
While that's true, none of the copyright holders are receiving the money, a source close to the NMPA said. Instead, the money is deposited in a holding account, until a payment rate is set. The current agreements with subscription services allow the music to be used pending a royalty agreement. "We don't know how much to distribute (to copyright holders)," the source said.
This week, the groups representing artists and publishers sent Potter a letter accusing DiMA of "negotiating in bad faith."
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