MUMBAI: Making it easier to offer music digitally, major record labels, publishers and digital music services have signed an agreement to set new royalty rates and standards.
The Recording Industry Association of America (RIAA), National Music Publishers Association (NMPA) and Digital Media Association (DiMA) have submitted a proposal to the Copyright Royalty Board (CRB) suggesting establishment of royalties for five different kinds of new digital music business models.
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The agreement will include services such as Apple’s iCloud, Amazon’s online music locker and Google’s free cloud service. The accord also extends existing royalties for CDs and downloads.
RIAA chairman and CEO Cary Sherman said, “This is a historic agreement that reflects our mission to make it easier for digital music services to launch cutting-edge business models and streamline the licensing process. This is a major win for consumers, the music community, entrepreneurs and investors in new music services.”
The deal if approved will be effective for five years with effect from 1 January, 2013-2017. The groups also announced that they would be extending an existing agreement set to expire at the end of the year, covering the prices for CDs and digital downloads offered by digital music stores and other services like iTunes.
The deal is aimed at avoiding past disputes over rates for music streaming services while also introducing new ways for consumers to enjoy music and possibly deter online music piracy.
