June 25, 2010

Songwriters Prevail in Cell Phone Ringtone Royalty Rate Fight

by Jenna Greene
The National Law Journal

Does your cell phone play "Sweet Child O' Mine" when it rings? Or maybe "Barbie Girl" or "Bigg Poppa"?

Cell phone ringtones have become a big business, but one unsettled legal question was just how much money copyright owners should get paid for ringtones using their work.

The answer: 24 cents, according to the U.S. Court of Appeals for the D.C. Circuit.

On Wednesday, the court upheld a decision by the Copyright Royalty Board setting the ringtone royalty rate, rebuking a challenge by the Recording Industry Association of America. The court also upheld the board's new late fee for overdue royalty payments.

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