Apple Wins in Copyright Court, iTunes Store Remains Open
It looks like Apple reigns supreme in a dispute with music publishers to increase song royalties from 9 cents to 15 cents on songs purchased through iTunes and other digital retailers, according to media reports. Apple opposed the royalties hike and threatened to close its music store if the two parties couldn't come to an agreement.
The Washington, D.C.-based Copyright Royalty Board declined the request from the National Music Publishers Association (NMPA), which was the board's first ruling on digital downloads. The decision will set royalty rates for the next five years. The board's decision also keeps Apple, the largest music retailer on the internet, from losing $144M in profit, and from being forced to push back at record companies to pay the proposed royalty increase out of their pockets.
"We're pleased that this decision freezes the current rate for CDs and digital downloads for the five-year term," said RIAA chairman Mitch Bainwol in a statement." No party got everything it wanted, yet at the end of the day, the certainty provided by this ruling is beneficial."