Report: Digital Sales Royalty Rates Settled On In Britain
September 29, 2006 at 1:27 PM (PT)
APPLE, SONY, and other assorted digital music retailers have settled a dispute over royalties collected on online music sales in BRITAIN, reports BLOOMBERG.
The providers, together with four mobile-phone operators and the BRITISH PHONOGRAPHIC INDUSTRY, agreed to a royalty rate of 8% of gross revenue on digital sales, minus value-added tax. Formerly, a group representing more than 40,000 music artists and publishers in BRITAIN had proposed a 12% maximum. The 8% rate will be subject to minimum royalties and doesn't cover ringtone downloads. The agreement also included a 6.5% rate for "non-on-demand services," such as Internet radio.