One of the common problems with running a mobile music service is getting the licenses for the songs…sometimes the sheer number of players that have to be talked to gets prohibitive. In Malaysia the industry has concluded a recent trial to solve this was successful enough to implement. “The Recording Industry of Malaysia (RIM) and Malaysian Music Publishers Bhd (MMP) have agreed to a standard copyright fee of 8% of any royalties gained from the digital use of a song or a piece of music.” The article doesn’t make it clear whether it’s 8% each or 8% between the two, but from international practice I’d say it’s the former.
However, the most important aspect is the one-stop-shop part of the plan, which means that “a content developer or telco now only needs to approach RIM for permission to use the music instead of going to the particular label”.
“RIM estimates that a Malaysian telco earns between RM30mil and RM50mil per annum from digital music based services.”
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