[Fmpro] FMPRO Digest

[Michael Leahy]

*Online Copyright Tribunal decision *

The UK Copyright Tribunal has returned its decision in relation to the 
rate paid to songwriters and composers when their music is used in 
online music services. The Tribunal has endorsed a settlement agreement 
negotiated in September 2006 between the Music Alliance - representing 
composers and songwriters - and the majority of the online music 
industry. The Tribunal concluded that this agreement, freely made 
between these parties, should be the basis for the template for online 
licensing in the future.
The Tribunal decision confirms that songwriters, composers and their 
publishers should receive 8% of gross revenues from online music service 
providers for on-demand services including downloads and subscription 
streaming services, 6.5% of revenues for interactive webcasting services 
and 5.75% for non-interactive webcasting. The concept of minimum 
royalties for all types of online use has been strongly confirmed, which 
was a key part of the Music Alliance's case to protect its members' 
rights and revenues. Steve Porter, Chief Executive of the Music Alliance 
said: 'This is a great result for music creators. We are happy that the 
Tribunal has endorsed our approach to the licensing of music used in 
online services.
'The uncertainty has finally been removed and we have a template for the 
future that recognises and affirms the value of the creative process to 
the online music business.'

posted by Record of the Day on Monday, July 16, 2007