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Latest Standoff Pits Publishers Against Subscription Services

Tuesday, January 08, 2008
by  alexandra

Can't we all just get along?  When it comes to the music industry - a sea of thousands of specialized interests and contentious personalities - the answer is frequently no.

In the latest episode, music subscription and on-demand services are now challenging a payment structure that requires mechanical payments for on-demand, streaming content.  Just recently, the Digital Media Association (DiMA) filed a brief with the US Copyright Royalty Board (CRB) arguing that an interactive stream is not a digital phonorecord delivery (DPD).  Instead, DiMA noted that the format required a performance royalty only, a declaration that quickly drew the ire of major publishers. 

Reactively, Sony/ATV has now reportedly ordered the Harry Fox Agency to terminate its licensing of major music services for streaming or limited downloads.  Other publishers may follow suit.



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