Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Entertainment Law & FinanceKickerFeaturesSectionsNewsLJN Newsletters

Ringtones Breed Tension Within Music Industry

By Eriq Gardner
November 01, 2005

By 2004, mastertones were the hot new thing. They had replaced polyphonic ringtones (multipitched tunes), which had replaced monophonic ringtones. Mastertones were compressed snippets of studio-recorded music. In order to offer them to the public, ringtone content aggregators needed to obtain both publishing clearance and permission from those who held the rights to the recordings. That meant negotiating with record companies.

According to Steve Gordon, author of the book “The Future of the Music Business” and an attorney who has represented both aggregators and record companies, the labels were peeved when they learned how much the publishers had gotten from the aggregators. According to multiple so-urces, aggregators had typically agreed to pay 25 cents per ringtone or 10% of the gross ringtone revenue, whichever was greater. So when the labels, which had been used to getting 40% to 50% of gross revenue from sales of digital music files, demanded a similar percentage, aggregators bal-ked, says Gordon.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs Image

A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.

Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Blockchain Domains: New Developments for Brand Owners Image

Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.

Supreme Court Rules Rejection of Trademark License Does Not Rescind Rights of Licensee Image

Mission Product Holdings, Inc. v. Tempnology, LLC The question is whether a debtor's rejection of its agreement granting a license "terminates rights of the licensee that would survive the licensor's breach under applicable nonbankruptcy law."