The National Music Publisher's Association (NMPA) announced this afternoon that the US Copyright Royalty Board ruled today that mechanical royalty rates will not increase- they will stay at $.091 per song for physical CDs and downloads for the next five years. Apparently, this decision was largely influenced by Apple's recent claim that it would shut iTunes down if the rate increase occurred. This is MAJOR news for everyone involved, because the rate has been in a state of somewhat uncertainty for about two years. Reports of the decision abound online.
An ancillary ruling was that ringtones will incur a mechanical royalty of $.24 (this is a first for ringtones), and publishers may now charge a 1.5% late fee for past due royalties (also a first under the statutory scheme).
Publishers may cry foul (they wanted more). Songwriters may cry foul (they wanted more). David Israelite, NMPA's CEO claims this as a victory for songwriters (I guess he was scared the CRJs might eliminate mechanical royalties or something). Apple is (for now) content, but the most direct benefit of this ruling is for the consuming public...it will help keep music costs down.
Next time you go to iTunes to buy music, be thankful the price didn't just go up.
Brock
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