Blog Post

Canadian Royalty Body Wants Higher Royalties on Ringtones

(via Ringtonia) Now that ringtones are big, royalty bodies are trying to get a piece of it…in Canada, the Society of Composers, Artists, and Music Publishers (SOCAN), one of Canada’s leading copyright collectives, has taken note of this growing revenue stream and sought to establish a new tariff, known as Tariff 24, to compensate music composers for the use of their work.
SOCAN recently asked the Canadian Copyright Board to award an escalating royalty rate, requesting that the 2004 royalty be set at 10 per cent of a ringtone supplier’s revenue with a minimum royalty of 10 Canadian cents per ringtone.
However, surprisingly, the Canadian Recording Industry Association claims that the proposed tariff is “excessive, unwarranted and unreasonable” and that the royalties are “neither fair nor equitable.”