RIAA Asks Panel To Lower Royalty Rates
December 1, 2006 at 10:39 AM (PT)
The RECORDING INDUSTRY ASSOCIATION OF AMERICA has asked the COPYRIGHT ROYALTY JUDGES to lower the rate record labels must pay to music publishers and songwriters, according to an article in the HOLLYWOOD REPORTER. The last time the government stepped in to adjust the rate was 1981; since then, publishers, songwriters and labels have come to terms, but the RIAA now says the government must intervene because "the assumptions on which those decisions were based have changed beyond recognition."
RIAA Exec. VP/General Counsel STEVEN MARKS tells the REPORTER, "Mechanical royalties currently are out of whack with historical and international rates. We hope the judges will restore the proper balance by reducing the rate and moving to a more flexible percentage rate structure so that record companies can continue to create the sound recordings that drive revenues for music publishers."