Media Law Prof Blog

Editor: Christine A. Corcos
Louisiana State Univ.

Thursday, September 25, 2008

Agreement Proposed On Digital Royalties

There's an apparent agreement on how digital royalties will be paid. The Digital Media Association has posted a press release outlining the agreement, which will be submitted to the Copyright Royalty Tribunal. Here are the high points, copied from the press release.

  • The agreement proposes mechanical royalty rates that cover both limited downloads and interactive streaming, including when offered by subscription and ad-supported services. 
  • The percentage rate structure in the agreement provides much-needed flexibility for new business models. 
  • The agreement permits the use without payment of certain kinds of promotional streams, in the interest of encouraging paid uses of musical compositions.
  • The agreement confirms that the mechanical licenses issued under its provisions will include all reproduction and distribution rights necessary to provide the licensed limited downloads or interactive streams.
  • Outside the scope of the draft regulations, the parties confirmed that non-interactive, audio-only streaming services do not require reproduction or distribution licenses from copyright owners.

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