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Lawsuit Over Ringtone Royalties

By James Quintana Pearce - Thu 27 Jul 2006 06:08 AM PST

The other half of the music battle...an ongoing lawsuit between some musicians and Sony over the amount of royalties they receive has been expanded to include ringtones.
“The suit claims that the average song sold over the Internet for 99 cents is netting the bands about 4 1/2 cents in royalties, rather than the 30 cents they claim they should get in a licensing deal...Ringtones — small sections of popular songs that play when a person’s phone rings — have been netting the performers about 8.3 cents apiece, out of the $1 to $1.50 that Sony Music gets from each sale. The musicians say they should get 50 to 75 cents”. The lawsuit seeks class action status, and claims ringtones will be a US$20 billion industry this year.

Posted in: Entertainment, Mobile Music, Music Labels, SonyBMG


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mocoNews.net is a news site covering the business of mobile content.

Rafat Ali
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Staci D. Kramer
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Tricia Duryee
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Matt Kapko
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Dianne See Morrison
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James Quintana Pearce
Contributing Writer

Robert Andrews
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