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News
Apple Agrees on Royalties For British Cell Phone Downloads
Wednesday, September 27th, 2006 at 3:00 PM - by Brad Cook
Apple and four British cell phone operators, including Vodafone France-based Orange, have agreed to royalty rates for digital music downloads. According to The Australian, Apple and the cell phone companies will pay 8% of gross revenue for all music, except ring tones.
British law previously said that 12% of gross revenue had to be paid, but a temporary decrease to 8% had been in place for the past four years. Now that decrease is permanent. Peter Jamieson, chairman of the British record industry's trade association BPI, commented: "This is a balanced voluntary settlement in which both sides can draw not just comfort from, but excitement that they can go forward and build a business together based on an understanding that will work to the benefit of all."
The agreement also includes a guaranteed minimum payment, protecting musicians if music prices drop dramatically.
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